Neighborhood trash pickups would most likely disappear.
Answer:
$32.72
Explanation:
In this question, we are asked to calculate the price an investor would be expected to pay per share in the next five years.
We proceed as follows to calculate this.
Dividend = $0.70
Share price = $18.90
Hence = Dividend / Share price
= 0.70 / 18.90
= 0.037037
Cost of Equity = 7.9%
Expected growth = 0.037037 + 0.079
= 0.116037
Add one to it = 1 + 0.116037
= 1.116037
Share price after 5 year = $18.90 * (1.116037)^5 = $32.7231
Answer:
The present value of the bonds on January 1, 2018 is $84.63 million
Explanation:
8% coupon payment of bond for a period of 15 year at a discount rate of 10% is the an annuity. Value of this bond will be calculated by following formula
Coupon payment = 100 x 8% = $8 million annually = $4 million semiannually
Number of periods = n = 15 years x 2 = 30 periods
Yield to maturity = 10% annually = 5% semiannually
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $4 million x [ ( 1 - ( 1 + 5% )^-30 ) / 5% ] + [ $100 million / ( 1 + 5% )^30 ]
Price of the Bond = $4 million x [ ( 1 - ( 1 + 0.05 )^-30 ) / 0.05 ] + [ $100 million / ( 1 + 0.05 )^30 ]
Price of the Bond = $4 million x [ ( 1 - ( 1.05 )^-30 ) / 0.05 ] + [ $100 million / ( 1.05 )^30 ]
Price of the Bond = $61.49 + $23.14 = $84.63 million
Answer:
Changes in technology can affect the demand for different products or the demand for related products. It can increase the market for a product by increasing the demand for a new product and making an older product obsolete
Explanation:
When a firm discovers a new technology that allows it to produce at a lower cost, the supply curve will shift to the right as well. ... A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.
It can be a way to restore trust
