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Alika [10]
3 years ago
11

LED​ Corp.'s common stock paid​ $2.50 in dividends last year ​(D0​). Dividends are expected to grow at a 12minuspercent annual r

ate forever. If​ LED's current market price is​ $40.00, and your required rate of return is 23​ percent, should you purchase the​ stock?
Business
1 answer:
frozen [14]3 years ago
6 0

Answer:

No, you should not purchase the stock as the stock is over priced.

Explanation:

Stock Price should be

Stock Price = Dividend last year / Required Rate of Return

                   = $2.50 / 23%

                   = $10.86

The current market price of the stock is $40 so the stock is over priced as it is $10.86 that is why you should not purchase the stock.

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In a closed economy, what remains after paying for consumption and government purchases is:________
natta225 [31]

Answer: d. national saving.

Explanation:

In a closed economy, GDP is calculated by adding Consumption, Investment and Government purchases. The investment in this instance can be thought of as National Saving.

National saving is the difference between the income in the country and the consumption and government purchases. It represent what households and the government save up from their income sources which can be used for investment.

5 0
3 years ago
Goschan Bank is a multinational bank. The employees from the bank's branches in underdeveloped countries are not given higher po
Otrada [13]

Answer:

B) adverse impact

Explanation:

Adverse impact refers to those practices that seems to be neutral for all the people but have a discriminatory effect on a certain group. It takes place in activities like hiring, promotion, training etc. of employees.

4 0
4 years ago
Suppose there are 2,000 people who are unemployed as a result of cyclical unemployment and 1,000 people who are unemployed as a
olga55 [171]

Answer:

1,000

Explanation:

Suppose the town of Boone has a total population of 50,000 people. Of those, 45,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.

This information is not given in the question.

For computing the frictional unemployment, first we have to determine the unemployed which is shown below:

Number of unemployed would be

= Total population - employed - full time students

= 50,000 - 45,000 - 1,000

= 4,000

Now the frictional unemployment would be

=  Unemployed - cyclical unemployment - structural unemployment

= 4,000 - 2,000 - 1,000

= 1,000

5 0
3 years ago
Examples of transaction costs include ​(check all that​ apply): A. the cost of the externality. B. the cost of monitoring an agr
Paha777 [63]

Answer:

The correct answer is option B, C, and E.

Explanation:

Transaction cost refers to the cost incurred on resources and time necessary for facilitating exchange of goods and services.

Among the given options, the examples of transaction cost is cost of monitoring an agreement, the cost of drafting a contract or agreement, and the time required to negotiate an agreement.

All these costs are incurred in order to facilitate exchange of goods and services.

The problem of externalities can have efficient private solution if these transaction costs are low otherwise the governement has to intervene to efficiently allocate resources.

3 0
4 years ago
Zack, Gavin and Breana were college friends who decided to go into business together as a party equipment rental service. The th
damaskus [11]

Answer:

im not sure what the answer wold be but you woulkd if you actually did your own work but its b

Explanation:

8 0
3 years ago
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