Answer:
The price an investor would be expected to pay per share ten years in the future is $17.61
Explanation:
P10 = [D1*(1 + g)^n]/(k – g)
Where:
P10 is the expected share price after ten years
D1 is the expected dividend for year 1 = $ 1.70
g is the dividend growth rate per year but we know that dividend is expected to be constant, g = 0
k is the cost of capital for the company = 8.2%
n is the number of years to calculate share price = 10
P10 = $ 1.55*(1 + 0%)^10/(0.088 – 0)
= $ 1.55/0.088
= $17.61
Therefore, The price an investor would be expected to pay per share ten years in the future is $17.61
The answer is b.False. Earnings per share is after-tax earnings divided by the number of shares of stock the company has issued.
Answer: B. an increase in interest rates that decrease economic growth.
Explanation:
If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.
Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Special one-time order for 15,000 bird feeders at $3 per unit.
Variable cost= $2.25
<u>Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.</u>
Effect on income= 15,000*(3 - 2.25)= $11,250 increase.
Globalization prompts expanded rivalry. This opposition can be identified with item and administration cost and value, target showcase, mechanical adjustment, snappy reaction, brisk generation by organizations and so on. At the point when an organization produces with less cost and offers less expensive, it can expand its piece of the overall industry.
