Answer:
The price will fall.
Explanation:
An increase in the quantity supplied with a corresponding decrease in demand will lead to a fall in prices.
Answer:
A. The supply of labor will definitely increase.
Explanation:
If wages rise, there would be an increase in supply according to the law of supply. The law of supply says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If demand for consumer good decreases, the demand for Labour falls.
General-purpose financial statements are the product of: <u>both financial and managerial accounting.</u>
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<h3>What is the definition of general purpose financial statements?</h3>
The general definition of financial statements is to provide information about the effects of operations, financial position, and cash flows of an organization. This information is employed by the readers of financial statements to make judgments regarding the allocation of resources.
<h3>What are the three general objective financial statements?</h3>
The balance sheet, income statement, and cash flow information each offer unique pieces with information that is all connected. Together the three statements give a comprehensive portrait of the company's working activities.
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Answer:
The Federal Trade Commission Act is a law passed in 1914.
Answer:
First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.
D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %
Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607
Growth Rate post Year 5 = 4.08 %
D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459
Required Return = 13.6 %
Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98
Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34
Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %
Total Required Return = 14. 6 %
Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %