Answer:
Price of the stock at the end of three years =$34,27
Explanation:
Price of the stock today =
.
Where D1 is the total dividend earned in year 1 =$0.2*4=$0.8
D1=D2=D3=$0.8
therefore, from the given information
.
Solve for P3, which is the price of the stock at the end of three years =$34,27.
Answer:
Because as more hats are produced less grapes can be produced.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
There are two commodities that can be produced by the country- hats and grapes.
If the country decides to increase production of hats, it has to reduce the quantity of hats that can be produced, therefore the opportunity cost increases.
Explanation:
For example, let assume a country can produce 30 grapes and 30 hats. If it decides to increase the amount of hats produced to 40, only 20 grapes can be produced. If it decides to increase to 50 hats only 10 grapes would be produced and if it decides to produce 60 hats, no grapes would be produced.
It can be seen that opportunity cost increases as more hats are produced
I hope my answer helps you
Answer:
Therefore, the Beta of Portfolio AC is 1.10
Explanation:
In order to calculate the Beta of Portfolio AC we would have to make the following calculation of the following formula according to the given data:
beta of Portfolio AC is given as=80%*1.0+20%*1.5
beta of Portfolio AC is given as=0.8+0.3
beta of Portfolio AC is given as=1.10
Therefore, the Beta of Portfolio AC is 1.10
Answer: what is not true about Allowance for doubtful accounts is that ----It is a liability account
Explanation:
Allowance for doubtful accounts is a contra-asset account that shows only amounts expected to be paid by negating the total receivables recorded on the balance sheet.
The allowance for doubtful accounts is credited when bad debts expenses are recorded and debited when uncollectible accounts are written off.
In summary, Allowance for doubtful accounts estimates the amount of accounts receivable expected but will not be paid by customers.