Answer:
Ans. Current Share Price=$33.85
Explanation:
Hi, we first have to establish the dividend for the first 3 years and the dividend when the growth rate falls off to a constant rate of 8% with the formula to find the present value of a perpetuity with constant growth rate. From there, we need to bring all the above cash flows to present value and that is the price of the share. The formula is as follows.
To find D1, D2,and D3, we have to do this.
D1=Do(1+0.19)
D2=D1(1+0.19)
D3=D2(1+0.19)
Since 0.19 is the growth rate for 3 years. Everything should look like this
notice that the sign of the last part do not coincide with the formula, that is because the growth rate from the first 3 years is -8%.
Best of luck.
Answer:
Decrease in income by $227,000
Explanation:
The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;
= -Sales + Direct cost + fixed cost - salary per year
= -$980,000 + $343,000 + ($450,000 - $40,000)
= -$980,000 + $343,000 + $410,000
= -$227,000
Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000
Decrease in income by $227,000
Answer:
The Price of Cocaine would rise drastically
Explanation:
If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:
- Since more restrictions get imposed, the procurement cost of cocaine alongside the risk associated with it in the form of higher penalties and prosecution, both will rise.
- The supply of cocaine would shrink in the market.
- The above two outcomes would result into the procurers and peddlers demanding much greater price for the same quantity of cocaine so as to compensate for the higher risk assumed and higher procurement costs associated.
Thus, price of cocaine will rise drastically as an outcome of such a move.
Answer:
Governments of different countries protect the interests of the consumers through the mechanism created by three types of legal provision. These are direct consumer protection laws, anti trust laws or the laws to curb monopolistic practices, and laws to govern management of corporations including trading exchanges.
B. They'll know exactly what you want.
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