1) the relative price would be about $1.50 I think
2) $2.00
3 $1.00
If these are wrong let me know please =) sorry if they are
Answer:
$43.19
Explanation:
Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.
P0 = D1/(r-g)
P0 = Current price
D1 = Next year's dividend = $3.11
r = investors' required return = 11.4% or 0.114 as a decimal
g = dividend growth rate = 4.2% or 0.042 as a decimal
P0 = 3.11/(0.114 - 0.042)
P0 = $43.19
Therefore, this stock price is $43.19
Answer:
c. classes, series.
Explanation:
Corporate stock refers to the shares issued to the shareholders through which the company gets its funds for the business.
These shares are of two classes mainly:
Equity and Preference
These are further divided into series like:
Equity = Fully paid, 50% paid
Preference = 5% Preference or 10% preference capital or any other rate.
Further it includes, the reserve and surplus also.
Answer:
115
Explanation:
Data provided in the question:
Number of breads bought = 4
Number of wine bottles bought = 2
Cost of bread in year 1982 = 50 cents = $0.5
Cost of wine bottle in year 1982 = $9
Cost of bread in year X = 75 cents = $0.75
Cost of wine bottle in year X = $10
Now,
The CPI is calculated as:
CPI = 
thus,
CPI for year X = 
or
CPI for year X = 
or
CPI for year X = 1.15 × 100 = 115
Answer:
Market value of common stocks (15,000 x $11) 165,000
Market value of preferred stocks (2,000 x $34) 68,000
Market value of bonds (50 x $960) 48,000
Market value of the firm 281,000
The capital structure weight of common stocks
= $165,000/$281,000 x 100
= 58.72%
Explanation:
In this case, there is need to determine the market value of the company, which is the aggregate of market value of common stocks, market value of preferred stocks and market value of bonds. The capital structure weight of common stocks is the ratio of market value of common stocks to market value of the company multiplied by 100.
