An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about
1 answer:
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Answer:
Current stock price will be $14.50
So option (a) will be correct answer
Explanation:
We have given dividend paid
Growth rate g = 6.5 %
Required return on market = 10.50 %
Risk free return = 4.50 %
So next dividend
We have to find thcompany current stock price
Required rate of return is given by
Required rate of return = Risk Free Return +
= 4.5+1.25×(10.5-4.5) = 12 %
Now current stock price
So option (a) will be correct option
The economic profit is calculated by,
Economic Profit = Total Revenue (TR) – ( Explicit Cost + Implicit Cost)
Total Revenue
Explicit Cost (Cost of land , Labor , capital) per acre = Machinery Ownership costs + Land Charge + overheads
Explicit Cost for 500 acres
Implicit Costs are not given
Economic Profit
Hence the economic profit is .
The difference between the revenue generated by the sale of an output and the prices of all inputs used, as well as all opportunity costs, is known as an economic profit. Possibility expenses and explicit costs are subtracted from earned revenues to establish economic profit. Economic profit is necessary because it helps examine an industry's financial and economic progress.
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