Two key components of corporate profitability are INDUSTRY STRUCTURE AND COMPETITIVE ADVANTAGE. Corporate profitability has to do with the economics indicators which calculate the net income of a company by making use of different measurement techniques. It is an effective tool which is used to give an overall overview of a company's performance.
Answer:
$9.687
Explanation:
Given:
Year 3 dividend = $1.00
Year4&5 growth rate = 17%
Constant rate = 7%
Required return rate = 16%
Year 4 dividend wil be:
D4 = 1.00 * 1+growth rate
= 1.00 * (1+0.17)
= $1.17
Year 5 dividend=
D5 = $1.17 * (1+0.17)
= $1.3689
Value of stock after year 5 will be given as:
= $16.2747
For the current value of stock, we have:
Cv= Fd* Pv of discounting factor
Where Cv = current value of stock
Fd = future dividend
Pv = Present value of discounting factor
Therefore,
=$9.6871382455
≈ $9.687
The value of stock today =
$9.687
Answer:
b) surplus; shortage; up; fall
Explanation:
If the bond market and money market start out at equillibrum, and money supply is increased there will be an excess (surplus) of money over bonds.
That is more money to buy less bonds. The relative scarcity of bonds will result in a shortage (bond supply cannot meet demand).
As a result of the shortage price of bonds will increase because more people are looking for the scarce bonds.
Price of bonds has an inverse relationship with interest. As price increases interest rates will fall.
For example consider a zero coupon bond of $1,000, being sold for low price of $850. On maturity it will yield gain of $150.
If the price rises to $950 the yield will only be $50.
So as price increases and interest (yield) decreases, it will no more be attractive to investors and demand will reduce to meet the available supply of bonds.
Answer:
Screening
Explanation:
Screening is a process in product development that evaluates and compares ideas that are put together for a business.
Simply put, screening is the checking and analyzing of ideas about a new product to ensure that the best idea is utilized to ensure profit.
Screening is done because every idea suggested cannot be good enough or useful for an organization and as such have to be trimmed off or trashed entirely to enable one use the best approach from other ideas.
I hope this helps.
Answer:
Part A)
Inflation Rate = 12% - 4%
Inflation rate = 8%
Part B)
If the genuine income was higher, the expansion level would diminish subject to the buyer's spending limitations. As such, they will make a similar measure of cash yet their buying power per dollar will increase.
Part C)
in the current scenario, increment in cash would cause the expansion rate to increment. On the off chance that we consider the past and occasions, for example, hyperinflation, take a gander at what the reason was. Governments were printing cash to pay obligations, which was diminishing the estimation of their money. Right now, would get paid and race to the store to go through their cash in light of the fact that their dollars today may just be worth 50 pennies tomorrow or at times, the following hour. Thus, our answer is if the speed of cash continues developing, expansion will continue developing also. These two factors are star repetitive with one another significance they move together.
