Answer:
$3.18 (rounded to nearest cent)
Explanation:
FIrst we shall find out the price at the end of year 2:
P1 = D2 ÷ (k-g)
Where,
P1 = price a the end of first year
D2 is the dividend in second year = $0.25
k is the cost of equity = 9.2% =0.092.
g is the growth rate = 2% = 0.02
now,
P1 = $0.25 ÷ (0.092 - 0.02)
=$0.25 ÷ 0.072
=$3.4722222222 (this is estimated price after two years).
Value of share today:
= Price of share after one year × (discounting factor @9.2% for one year).
Discounting factor @9.2% for two years = 1 ÷ (1.092)
=0.91575091575
The value of share today:
= ($3.4722222222) × (0.91575091575.)
= $3.17969068
= $3.18 (rounded to nearest cent).
Answer:
c. many people become discouraged and cease looking for work.
Explanation:
The Bureau of Labor Statistics BLS computes the unemployment rate on a monthly. In calculating the unemployment rate, BLS considers the number of unemployed people divided by the labor force. The bureau defines an unemployed person as a jobless individual who is actively seeking employment.
The unemployment rate does reflect the true status of unemployment in the country. The definition of an unemployed person excludes individuals who have given up the search for work. Discouraged people and those not actively seeking work due to various reasons are not considered as unemployed. Therefore, the unemployment rate as presented by BLS is not an accurate measure of unemployment.
Answer:
C. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
Explanation:
The unemployment rate is a determinant in the country's standard of living because this phenomenon derives in loss of income in the families, that at the same time reflects in a decrease of the spending power and this also can result in an increase in the debt problems which they don't have enough to pay.
On the other hand, in complex economies, unemployment is measured in 5 ways: cyclical, structural, seasonal, frictional and institutional. Some of these types could reach 0 but others will remain so it would be inevitable to have some degree of unemployment.
Answer:
The correct answer is: Net Income would be overstated and Balance Sheet liabilities would be understated.
Explanation:
The Income Statement is a report that measures a company's financial performance over a specific accounting period. The Income Statement is also known as the Profit & Loss Statement and Earnings Statement. The Income Statement reflects the company's <em>revenues and expenses</em> during a certain period.
Thus, <em>if deferred interest is not recorded in the Income Statement, the Expenses and Liabilities will be understated and the Net Income would be overstated</em>.
Answer:
The correct word for the blank space is: Inconsistency.
Explanation:
In an attempt of making a service into a product, we can identify four (4) characteristics those services must meet: <em>intangibility, inconsistency, inseparability, </em>and<em> inventory</em>. The inconsistency characteristic refers to services being different one from another because they are provided by people which implies even if the service might be standardized the way it is provided will not always be the same.