Answer:
The correct answer is letter "D": requires that the dividend growth rate be less that the required rate of return.
Explanation:
The Gordon Growth Model is used to calculate the intrinsic value of a stock today, based on the stock's expected future dividends. It is widely used by investors and analysts to compare the predicted stock value against the actual market price. Its formula is:
P = D / r-g
where:
- P= current stock price
- g= dividend growth rate expected
- r= rate of return
- D= value of the dividends for the next year
The formula has limitations because <em>the rate of return must be higher than the dividend growth rate expected</em>. Otherwise, the resulting stock price would be negative and the model would be useless.
Answer:
Total Cost is the cost that is fixed and does not vary directly with the level of output. According to this question typesetting, printing, editing, reviews, promotion, and advertising are fixed costs. The total fixed cost here is $100000.
Total Variable Cost is the costs that vary directly with the level of output. Variable costs are incurred on variable factors. The Total Variable Cost here is $49000.
Marginal cost is addition to the total cost when one more unit of output is produced.
<u>EQUATIONS
</u>
TC = 100000 + 4.9Q
ATC = 100000 + 4.9Q / Q
AVQ = 4.9Q / Q
MC = Change in Total Cost / Change in Quantity = 4.9
<u>GRAPH</u>
Is attached as picture.
Conclusion: The AVC and MC both are equal to 4.9.
Answer:
1 is correct .
Explanation:
when the cost of borrowing money rises bond price usually fall and vice versa.
Answer:
the amount of the loan the pawnbroker made to Jerry is $112.50
Explanation:
In order to find 15% of $750, one method is dividing 750 into 100 to find the value of 1%.
750 ÷ 100 = 7.5
Now we know the value of 1% is $7.50, so all we have to do is multiply that by 15.
7.5 × 15 = 112.5
Therefore, the amount of the loan the pawnbroker made to Jerry is $112.50
Pre-inspection agreement is pre-sale inspection. As pre-inspection agreement is in essence in a contract between two parties, so it can be called contract agreement.