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:
The four Ps happens to be the four significant factors that come into the vicinity when certain service or the good is being marketed with the public as the buyer. And the four Ps are product, price, promotion and the place. We need to select the bank which is nearest to us, and about which we have heard a lot and are confirmed about good service. The $100s checking account is not going to print interest for us, but we need 24 x 7 service as its a sort of current account, and we need to do the daily transaction through it. And hence the bank should provide all the time good service, and most probably 24 x 7 service. And this defines their product. Also, they should charge the least service charge, and that is the price. The bank which best fit according to above 4 p's, is the bank I will choose.
Explanation:
Please check the answer section.
Answer:
Growth Stage
Explanation:
The growth stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases. In growth stage sales starts rising rapidly, average cost per customer, profits starts rising as well, early adopters buy products, competitors starts increasing in number. Main aim of any firm in this stage is to maximize market share. Brands need to offer product extension. Price needs to be set to penetrate the market.
25,000 shares authorized
12,000 shares issued
10,000 shares of common stock outstanding
0.50 per share cash dividend on its common stock outstanding
Declaration of dividends on its common shares.
10,000 * 0.50 = 5,000
Debit Credit
Retained Earnings 5,000
Dividends Payable 5,000
Getting rid of old stuff to people who want it instead of throwing it away.
