Answer:
r = 0.09672 or 9.672%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
55 = 3 * (1+0.04) / (r - 0.04)
55 * (r - 0.04) = 3.12
55r - 2.2 = 3.12
55r = 3.12 + 2.2
r = 5.32 / 55
r = 0.09672 or 9.672%
Answer:
if you just want to cover your costs you would have to charge 25 dollars for it if you dont want to make a profit
Explanation:
When looking at plant layout, Ford most likely uses product layout because automobiles undergo the same operations in the same order.
Answer:
$ 0
Explanation:
Under monopolistic competition, firms reach equilibrium in the long-run: this equilibrium is a point in which the marginal cost of producing one additional unit of ouput are the same as the marginal revenue from the sale of the same additional unit of output.
In other words, in the long-run, firms under monopolistic competition can only break-even, they do no obtain economic profits.
