Answer:
The current stock price is $13.60
Explanation:
D1 = $0.53
D2 = $0.58
D3 = $0.73
D4 = $1.03
Growth rate, g = 3.60%
Required return, r = 10.00%
D5 = D4 * (1 + g)
D5 = $1.03 * 1.036
D5 = $1.06708
P4 = D5 / (r - g)
P4 = $1.06708 / (0.10 - 0.036)
P4 = $16.673125
P0 = $0.53/1.10 + $0.58/1.10^2 + $0.73/1.10^3 + $1.03/1.10^4 + $16.673125/1.10^4
P0 = $13.60
So, current stock price is $13.60
Answer:
The answer is given below;
Explanation:
Retained Earnings (125,000*2%) Dr.$2,500
Dividend payable Cr.$2,500
Retained Earnings (62,000*.25) Dr.$15,500
Dividend Payable Cr.$15,500
Answer:
2. Brett is a farmer with an open field on which he can plant either soybeans or corn.
Explanation:
Scarcity in economics means the resources available to meet man's needs are limited or scarce.
In brett's case, land is limited, so he has to choose between planting soybeans and corn.
I hope my answer helps you
Answer:
$10,000 increase in stockholder equity
Explanation:
The buying of treasury stock reduces the balance of stockholder equity but when the treasury stock is reissued or we can say after purchase, the sale of treasury stock is done for $10,000. So, it increases the balance of stockholder equity
It means that the purchase of treasury stock has an adverse impact on stockholder equity whereas reissued shares have a positive impact on stockholder equity
Assume that skilled labor costs twice as much as unskilled labor, a profit maximizing firm will hire until the marginal product of unskilled labor is half that of skilled labor.
A profit maximizing firm is a firm that tries to create products that are of good quality at the barest or smallest cost.
The marginal product falls after an additional amount of the resource has been added. It is the extra amount that is gained due to the addition of an extra unit.
Due to the fact that both the skilled and unskilled would decrease eventually, the company would have to hire both at equal marginal products.
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