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Answer;
Based on Supply and demand; If a more people want a commodity, it is in greater demand, thus the price will be higher, and if less people want a commodity, the price will be lower.
Explanation;
In a market the price is determined using the law of demand and supply in that particular market. Demand is the quantity of goods that consumers are willing and able to buy at a given price while supply is the quantity supplied by suppliers at a particular price.
If a more people want a commodity, it is in greater demand, thus the price will be higher, and if less people want a commodity, the price will be lower.
Answer:
D0 1.50
D1 1.60
D2 1.78
D3 1.94
D4 2.12
D5 2.31
Price of the stock after 5-year $ 77
PV $ 81.75
Explanation:
Earning per share 2.5
Dividend per share 1.5
grow ratio 9%
P/E ratio 24
within 5 year is expected to fall to 20
We solve for the dividend by multiplying the dividends by the grow rate of 9%
We solve for the earning after 5 years:
Principal 2.50
time 5.00
rate 0.09000
Amount 3.85
Then we multiply by 20 to get the value of the stock:
$ 3.85 x 20 = $ 77
We solve the horizon value:
PV $ 81.75
As a result of a debit to the Retained earnings account, the balance would <u>decrease</u>.
<h3>What happens when Dividends are declared?</h3>
- They are taken from the profits of the business.
- These profits are represented by the retained earnings account.
Retained earnings are an equity account which means that they are credited when they increase. When they are debited therefore, they will see a decrease.
In conclusion, the balance would decrease.
Find out more on retained earnings at brainly.com/question/26251019.
Answer:
Market dynamics are forces that will impact prices and the behaviors of producers and consumers.