Answer:
A) $1,050,000
Explanation:
Residual income
= Net operating income - (Total assets*Target rate of return)
= 1,250,000 - (20%*1,000,000)
= $1,050,000
Therefore, The division's Residual Income is $1,050,000.
MUx / MUy = Px / Py is the right answer
Regulations exist according to the Green New Deal signed in the UN and applied rather loosely inside the country.
Explanation:
The green new deal is basically responsible for the laws that are being written over the use of plastic and its manufacture and shipping in the country due to the volatility of plastic products in the environmental sphere and how terribly they have been responsible for global warming.
The laws according to the Green New Deals regulate the making of plastic in function to its consumption, effect to the environment and the decay rate.
Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
