Answer:
The price of the stock will be $76.97
Explanation:
We first need to determine the constant growth rate on dividends.
Growth rate (g) = (D1 - D0) / D0
Growth rate (g) = (2.08 - 2.00) / 2 = 0.04 or 4%
To calculate the price of a stock today whose dividends are growing at a constant rate, we use the constant growth model of DDM. The price of the stock today under this model is,
P0 = D1 / ( r - g )
Where,
- D1 is the dividend expected for the next year
- r is the required rate of return
- g is the growth rate
Thus, to calculate the price of the stock today at t=10, we will use the dividend expected in Year 11 or D11.
D11 = D0 * (1+g)^11
Where P10 is the price 10 years from today.
P10 = 2 * (1+0.04)^11 / (0.08 - 0.04)
P10 = $76.97
Answer: Option (1) is correct.
Explanation:
If the interest rate in a home country is lower than the U.S rate of interest then the government and firms of home country won't demand for U.S. funds as it will become expensive for the corporations to borrow funds from U.S. at such a higher rate. Hence, less demand for U.S funds.
There is an inverse relationship between the U.S. interest rate and foreign demand for U.S. funds. If there is an increase in the U.S. interest rate as a result foreign demand for U.S. funds decrease. As it will be not affordable for the borrowers to take funds at a higher rates.
Answer:
d.$24,000
Explanation:
Given that
Issuance of common stock = $32,000
Number of shares = 2,000 shares
Stated value per share = $12 per share
By considering the above information
The common stock would be credited for
= Number of shares × Stated value per share
= 2,000 shares × $12 per share
= $24,000
Hence, the correct option is d. $24,000
Answer:
B. 29.2%, 12.5%, 10.0%
Explanation:
Gross Profit = Sales - Cost of goods sold / Sales
Gross Profit = $1,200 - $850 / $1,200
Gross Profit = $350 / $1,200
Gross Profit = 0.2917
Gross Profit = 29.17%
Operating profit = Sales - Cost of goods sold - Operating Expenses / Sales
Operating profit = $1,200 - $850 - $200 / $1,200
Operating profit = $150 / $1,200
Operating profit = 0.125
Operating profit = 12.5%
Net profit margin = Sales - Cost of goods sold - Income Taxes / Sales
Net profit margin= $1,200 - $850 - $200 - $30 / $1,200
Net profit margin $120 / $1,200
Net profit margin= 0.1
Net profit margin= 10%
A. supply
<span>The law of supply is an economic rule stating that price and quantity supplied move in the same direction.</span>