Answer:
The current price of Hubbard's common stock is <u>$25.50</u>.
Explanation:
This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price = ?
D1 = Next dividend = D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53
r = required return = 8%, or 0.08
g = growth rate = 2%, or 0.02
Substituting the values into equation (1), we have:
P = $1.53 / (0.08 - 0.02) = $25.50
Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.
Answer:
Consumers should not buy from companies that don't source materials
Explanation:
Companies should never have an excuse for not sourcing for their materials responsively and responsibly. They owe an ethical responsibility as well as a duty to offer their customers qualitative products at the best price and that is most sustainable to the environment.In recent times, through the widespread use of social media and the instrument of investigative journalism, it has been able to bring to the surface, the less than responsible activities of many companies in sourcing for their interest of the public and the environment.The 2006 movie "Blood Diamond" shows an avid description of how diamonds are mined and traded in the war-torn country of Sierra Leonne depicting the violation of Human and Child rights and how is excessively enriched diamond suppliers and companies.It is clear that many companies despite the public outcry for transparency in revealing their supply chain in sourcing for their materials still chose unorthodox practices. It therefore, falls on the consumers to spend their money responsibly and make smart and credible choices with their finances by refusing to buy from companies that are not transparent with their source materials.Consumers are the life-wire of any business and the hope of any business survival rests majorly on consumer satisfaction. Researches have shown that companies are no being accountable with the natural resources are utilized and have been used to cause serious harm to people and the environment. Since the companies manage to evade adequate regulations and responsibilities, it falls on the consumers to ensure that their money serves them to the greatest value.
Answer:
It occur where MR = MC
Explanation:
Perfectly competitive organization or firm is the one who is price taker, which states that they must accept the price at which it sells the goods to consumer.
In a firm that is a perfectly competitive, the level of output as well as the price happen where the Marginal Cost is equal to the Marginal Revenue.
It is stated as MR = MC.
"The answer is $106".
After tax cost of debt 6%
Dep per year 1600
Tax sav from dep 640
cost of owning 0 1
interest -480
tax saving 192
maintence -240
maintenece saving 96
Depn tax saving 640
loan repay
net cash cost 208
PV cost of owning (6%) -3474
cost of leasing
lease payment -2100
Tax savings from lease 840
net cash cost -1260
PV cost lease 6% -3368
PV cost own - Pv cost lease 106
