<span>A hypothesis is a specific prediction of how variables may be related; whereas a theory includes broad explanations and predictions concerning phenomena of interest. A theory is always backed by evidence but a hypothesis is only a suggested possible outcome. It can be tested and be proven to be right or wrong.</span>
Answer:
The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).
Explanation:
to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.
Let r be the discount rate which is 10%.
a.
The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.
The price of this stock can be calculated as,
Price or P0 = Dividend / r
P0 = 10 / 0.1 = $100
b.
The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.
P0 = D1 / r - g
Where,
- D1 is the dividend for the next period
- r is the cost of equity or discount rate
- g is the growth rate in dividends
P0 = 5 / (0.1 - 0.04)
P0 = $83.33
c.
The price of this stock can be calculated using the present of dividends.
P0 = 5 / (1+0.1) + 5 * (1+0.2) / (1+0.1)^2 + 5 * (1+0.2)^2 / (1+0.1)^3 +
5 * (1+0.2)^3 / (1+0.1)^4 + 5 * (1+0.2)^4 / (1+0.1)^5 + 5 * (1+0.2)^5 / (1+0.1)^6
P0 = $34.28
I believe the answer is:
1/Retirement plans
Especially the one that arranged by the government since it guaranteed by Federal banks
2/Property
The value would almost always increasing over time
3/A-rated bonds
A- rated bonds is score that given to the bond that have strong chance of return by credit rating company
4/Speculative stocks
If speculative stocks is scored by rating company, it would become B-rated or lower.
Geraldo owns a well-known brand and allows Henry to sell products with that brand name. Geraldo has agreed to: product and trade name franchising.
<span>A franchiser is the persn that licenses its know-how, procedures, intellectual property and use of its business model and brand. In our case the franchiser is Geraldo. He gives the rights to sell its branded products and services to Henry, who is called a franchisee.</span>
Answer:Flexible budget =$ 150,750
Explanation:
Variable overhead rate = $108,000 / 160000 = $ 0.675 per hour
(budgeted supervision cost)
Fixed overhead = $ 36,000
Flexible budget = Variable over head rate x direct labour + budgeted supervision cost (fixed overhead)
0.675 x 170,000+ 36,000
= 114,750+36,000
=$ 150,750