Answer:
The answer is option e. $44.46
Explanation:
The stock's expected price after 5 years can be expressed as;
FV=CV(1+RRR)^n
where;
FV=future value of stock/expected price after 5 years
CV=current price of stock
DGR=dividend growth rate
n=number of years
In our case;
FV=unknown
CV=$35.25 per share
DGW=4.75%=4.75/100=0.0475
n=5 years
replacing;
FV=35.25(1+0.0475)^5
FV=35.25(1.0475)^5
FV=44.46
Answer:
The answer is: C) There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.
Explanation:
When the residents of a nation decide to permanently increase their savings, that affects the economy in several ways. At first, it will lower the total demand for products and services (to be able to save money you must spend less) and increase the quantity demanded for bonds. This increase will lower the price (in this case interest rate) of bonds.
When the interest rates of bonds is lower, it means the cost of borrowing money for the general population will also lower. The interest rate commercial banks charge their clients always follow the interest rate of bonds. That will lead to greater investment and spending in the economy, and future economic growth.
Reputation.
If a company has a bad reputation of allowing the sale of counterfeit goods, buyers will not trust the site and will not buy from it.
Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.
<h3>What is the significance of the prospectus?</h3>
It is crucial for an investor to get as a good deal of data as feasible approximately a funding earlier than placing your money into any company. One of the files provided through many businesses is the <u>prospectus. </u>
The prospectus presents you with data approximately the funding and allows you're making a knowledgeable choice as an investor.
Therefore, Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.
Learn more about <u>the prospectus:</u>
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Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
