A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
Gross earnings is your total income earned without the deductions in place.
Net pay on the other hand is your total income plus tax deduction.
Cash rates probaly.I am going to assume
Answer:
The DAP Company
Current price per share:
Current price = Current Dividend (D0) / (WACC - Growth Rate)
= $2/ (0.10 - 0.06) = $50
Explanation:
The technique used to value the share price is called the Dividend Discount Model (DDM). The Myron Gordon model of this DDM is popularly used.
This model states that the current price of a share is the Current Dividend (D0) divided the difference between the cost of capital and the growth rate.
The result is the intrinsic value of the stock. The model assumes that dividends are paid in perpetuity and that the growth rate is constant over many years.
These remain assumptions as the real life offers quite different scenarios. There is no company that pays dividend every year in perpetuity. A company's growth rate is never constant year on year.
Answer:
Common stock represents the most basic form of a company's ownership and includes voting rights and dividends, if and when a firm elects to pay dividend
Explanation:
Common stock is a form of a company's ownership because common stockholders are legal owners of a company. They have voting rights but their dividends may not be paid. They are entitled to residual profit after the company has settled the claims of bond holders and preferred stockholders. They bear the highest risk in the event of liquidation of a company.
