Answer:
$26.05
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid = d0 x (1 + growth rate)
d0 = dividend that was just paid
r = cost of equity
g = growth rate
1.5 x (1.045^6) / 12 - 4.5 = $26.05
Answer:
a. mostly cigarette buyers.
Explanation:
The law of demand states an inverse relationship between quantity demanded of a good and it's price, keeping other factors affecting demand as constant.
Price elasticity of demand refers to the degree of responsiveness of quantity demanded to a change in price.
Alcohol and cigarettes are exceptions to the law of demand since in their case, the factor of addiction presides which outweighs rational decision making.
Thus, price elasticity of demand of cigarettes is inelastic. So a marginally higher price charged for cigarettes will not reduce their consumption.
A new tax on cigarettes would raise their prices. The manufacturers, to cover such taxes and maintain the same margin as before would further raise the prices of cigarettes further.
Thus, the tax burden would be shifted to the consumers and hence majorly borne by them.
Answer:
The correct answer is letter "A": Investing decisions (Yes); Credit decisions (Yes).
Explanation:
Financial Accounting refers to gathering, recording, summarizing and reporting financial data related to a company. The ultimate objective is to accurately report the financial picture and results of a company at a certain point in time and over a certain point in time.
<em>The information gathered is helpful for investors so they can make decisions over what course the firm should follow moreover when a company might need credit to finance its operations.</em>
Answer:
B. Marketing and sales
Explanation:
Based on the information provided within the question it can be said that the studies conducted were part of the marketing and sales value chain activity. This is the department within a company that focuses on analysis of customer wants/preferences and needs, in order to hopefully increase sales with the information gathered.
Answer:
A As time goes on and your bank account grows, you earn more interest.
Explanation:
A compound interest-earning account adds the interest it has earned in a particular period to the principal amount. This results in the principal amount increasing by the amount of interest earned in the period. Therefore, for compound interest, the principal amount is bigger at the beginning of every year.
In practice, interest is calculated based on the principal amount. If the principal amount is higher every period, the interest earned will also go up every year.
