Answer:
the price of the stock today is $46
Explanation:
The computation of the price of the stock today is shown below;
= Expected dividend ÷ (required rate of return - growth rate)
= $2.3 ÷ (10.6% - 5.6%)
= $2.3 ÷ 0.05
= $46
hence, the price of the stock today is $46
We simply applied the above formula so that the correct value could come
And, the same is to be considered
cash decrease in 5000 and purchase increase by 5000
Answer: A nation with a market-based economic system
Explanation:
Market economies are generally considered the best places to do business because the competitive nature as well as minimal Government interference gives companies the opportunity to make profits if they are efficient enough.
A company that lacks basic democratic institutions will be shunned because the Government can impose unilateral decrees that could be harmful to business and people would be unable to go against them. The same goes for a nation where economic activity is regulated by the state.
And a nation where the rule of law does not take precedence over business could lead to unfair competition so the Market based economy is the best to do business in.