Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Answer: i think the third one maybe... (APEX)
Explanation: this should work
Answer:
(a) GDP is a dependent variable and aggregate net investment is a independent variable. There is a positive relationship between the variables which means that an increase in the net investment will lead to increase GDP.
(b) There is a negative relationship between the variables which means that as the supply of wheat increases, as a result price of wheat falls. So, as the number of acres of wheat planted in a season increases as a result price of wheat decline.
(c) There is a negative relationship between the variables which means that an increase in the interest rate in an economy will lead to increase the cost of borrowings and hence, net investment falls.
(d) There is a negative relationship between the variables because of the law of demand. It states that an increase in the price of a commodity will lead to reduce the quantity demanded for that commodity.
(e) There is no relationship between these variables. Both the variables are totally uncorrelated.
Answer:
It is decreased by the sale amount
Explanation:
An income statement is a financial statement that communicates a business's profitability. An income statement lists the revenues and expenses incurred by a business in a period.
The sale of a company's asset may result in a loss or profit. A profit is treated as an income to the business, but a loss is an expense. When an asset is sold at a loss, business expenses increase. An increase in expenses reduces profits as reported in the income statement.
Answer: See explanation
Explanation:
The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:
P = 50 + 0.1Q
Check: since Q = 100
P = 50 + 10/100Q
P = 50 + 0.1Q
To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:
Market demand = P = 200 - 0.9Q
Market Supply = P = 50 + 0.1Q
Therefore,
200 - 0.9Q = 50 + 0.1Q
200 - 50 = 0.1Q + 0.9Q
150 = Q
Equilibrium quantity = 150 units
Since P = 50 + 0.1Q
P = 50 + 0.1(150)
P = 50 + 15
P = 65
Equilibrium price is 65.
The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.
