Answer:
Price of stock = $78.143
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 11.0% as follows
Price of stock =3.15 × 1.11^(-1) +3.55× 1.11^(-2) +4.05 1.11^(3) +95× 1.11^(-3)
=78.143
Price of stock = $78.143
Answer:
1. c.$124,000
2. e.$46,000
Explanation:
The Fuller company has issued two bonds with separate coupons. The liability for unredeemed bond at December 31, 2012 is $124,000.
The value of bond when issued is $720,000
Value of bond at expiration date is $300,000
720,000 / 300,000 = 2.4
2.4 * 190,000 = 456,000 / 3.67 years
= $124,000
Case corporation has issued bond with value 94 issued at par with 10% coupon rate.
Using the amortization bond table we get $46,000.
$(100000 / 94 ) * 10% = 106.38 * 5 years
= 5,319.20 * 8.64 amortizing rate
= $46,000
Answer:
$136,000
Explanation:
According to the scenario, computation of the given data are as follows,
Amount receivable = $160,000
Allowance for sales return = 10% × $160,000 = $16,000
Commission = 5% × $160,000 = $8,000
So, amount of cash from factored receivables can be calculated by using following formula,
Cash from factored receivables = Amount receivable - Allowance for sales return - Commission
= $160,000 - $16,000 - $8,000
= $136,000
Answer:
a) The demand curve for unskilled labor is vertical.
Explanation:
Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the Group of answer choices demand curve for unskilled labor is vertical.
Response to prices depend on the elasticity of demand because elasticity of demand relates to how quantity demanded will fall as a result of increase in price or in this case wage rate.
A vertical demand curve is a pictorial demonstration of a perfectly inelastic demand which means that no matter how much to you increase the price no change will occur in quantity demanded as such a good is most essential to the consumers.
Therefore if the demand for labor is perfectly inelastic, it means nobody will be laid off with increase in wage rate as firms will not change their quantity demanded for labor.
Answer:
The options chosen are:
B. the tragedy of the commons;
C. incentive to conserve the property;
E. incentive to protect the property.
Explanation:
<em> B. The tragedy of the commons- </em>Open-access regimes can be exploited on a first-come, first-served basis, because no individual or group has the legal power to restrict access. The consequences of open access have become popularly known as what Hardin (1968) misleadingly called ‘the Tragedy of the Commons.’
<em>C. incentive to conserve the property:</em> In addition, clearly defining and assigning property rights should resolve environmental problems by internalising externalities and relying on incentives for private owners to conserve resources for the future.
<em>E.</em> The Incentive to protect the property -<em> </em><em>The incentives associated with private property rights can help conserve scarce resources: Private ownership entails penalties for premature harvesting or over-harvesting of resources. Private ownership rewards community and individual cooperation. Private ownership rewards conservation and stewardship behaviour.</em>
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