<span>If the seller cost for the book was $6.50, the seller would loose money on each sale at $6.25 except for two reasons: (1) The seller is so worried that they will get caught with a supply of the books that selling at a slight loss is better then a complete loss. (2) The seller is willing to take a slight loss on one item to deliver a large audience to their store in order to sell customers more profitable items.</span>
Answer:
required return on the company's stock = 11%
Value of each share =$88.51
Explanation:
The constant growth model states that . If ke is made subject of formular, .
This implies that ke= dividend yield plus growth rate = 6%+5%=11%. Therefore the required return on the company's stock = 11%
Values of each share = .
where
and P3=
Value of each share = = 88.51
Answer:
The loan is due on August 18th
Explanation:
Simple interest is defined as the amount that is paid on a loan over a period of time. The interest is paid along with the principal in the course of loan tenure.
The formular for simple interest bis given as
Interest= principal* Interest rate* time
We are to calculate the loan duration and it was disbursed on June 7.
120= 4,000* 0.15* time
Time = 120/(4,000*0.15)= 0.2 years
Time = 0.2* 365 days
Time= 73 days
Therefore the loan is due on August 18th