Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
Neoclassical economics places a larger focus on providing extra options and <u>improving living standards, </u><u>which are ultimately decided by long-term progress.</u>
As a result, it focuses on long-term growth rather than fighting recessions.
In actuality, neoclassical economics holds that a product's price is mostly influenced by its manufacturing costs. According to neoclassical economics, the primary factor for client decision-making therefore becomes price.
As a result, letting the neoclassical economists concentrate on prices is not the best way to combat the recession. Long-term economic performance is always emphasized by neoclassical economists.
Note that the neoclassical approach to macroeconomics emphasizes the idea that, over time, the economy tends to recover to its potential GDP and natural unemployment rate.
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Answer:
a) II only
Explanation:
Bonita is planning to join the new company because there is an availability of getting a loan from the company. Unlike her previous employer, the new employer has different packages for employees such as retirement plans as well as the available of loans for employee. Therefore, it can be concluded that the correct option is a.
A client finances a newly constructed home with a federal housing management mortgage, the FHA requires the builder is The FHA set requirements for production and underwriting and insures loans made through banks and other private creditors for domestic building.
Finance is described because of the control of cash and consists of activities inclusive of making an investment, borrowing, lending, budgeting, saving, and forecasting. There are 3 primary forms of finance: (1) private, (2) company, and (3) public/government. The finance subject includes 3 fundamental subcategories: personal finance, corporate finance, and public (authorities) finance. customers and organizations use monetary services to collect economic goods and obtain economic desires.
Financing is the technique of providing finances for enterprise activities, making purchases, or making an investment. financial establishments, which include banks, are in the enterprise of offering capital to companies, consumers, and investors to help them attain their dreams.
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Answer:
Explanation:
A. Profit margin*Total asset turnover=Return on assets(investment)
0.07*TAT=25.2
TAT=360
B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%
C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%
