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ElenaW [278]
3 years ago
10

BioScience Inc. will pay a common stock dividend of $4.60 at the end of the year (D1). The required return on common stock (Ke)

is 17 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P0)
Current Price______________
Business
1 answer:
Angelina_Jolie [31]3 years ago
8 0

Answer:

The current price of the stock is $46

Explanation:

We will use the gordon growth model to calculate the price of the stock. The formula is

Price= D1/R-G

D1 is the year end dividend

R is the required return on the stock and G is the constant growth rate.

We will plug in the numbers in the formula in order to find the price.

4.60/(0.17-0.07)=46

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question answered by

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The purpose of a flexible budget is to:
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Answer:

c. update the static planning budget to reflect the actual level of activity for the period

Explanation:

A flexible budget is a  financial plan of expenses and revenues based on the actual level of output. A flexible budget adapts to changes in prices and company needs. Because the budget varies with the market condition, it is called a variable cost.

Due to their variable nature,  flexible budgets are used to update the static estimates at the end of a period. The company compares the actual result in the flexible budget with that of a static budget. The management uses a flexible budget to evaluate the business performance for the period. Specific areas of success and failures are highlighted. Decisions on areas that need improvement can then be made.

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3 years ago
The adjusted trial balance of Parsons Company at December 31, 2014, includes the following accounts:
Otrada [13]

Answer:

<u>Income statement of  Parsons Company for the period ended December 31, 2014</u>

                                                                   Amount in $        Amount in $

Service Revenue                                                                       37,000

Operating expense;

Salaries and Wages Expense                      16,000

Insurance Expense                                        2,000

Rent Expense                                                 4,000

Supplies Expense                                           1,500

Depreciation Expense                                   <u> 1,300</u>

Total expense                                                                           <u> (24,800)</u>

Net income/(loss)                                                                     <u>   12,800  </u>

Explanation:

The income statement shows the income and expenses of a business. Owner's capital and drawings are elements of the business balance sheet. Other items given are elements of revenue and cost.

6 0
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true i the correct answer

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All else being equal, a decrease in ________ would shift the long-run aggregate supply curve (lras) to the left.
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alterations in the overall supply

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The aggregate supply curve moves to the right when productivity increases or the cost of necessary inputs lowers, allowing for a combination of lower inflation, increased production, and less unemployment.

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

to know more about aggregate supply curve

brainly.com/question/14748223

#SPJ4

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