Answer:
Natural resource - Land
Human resource - Labour
Capital good - Machine
Explanation:
An example of a natural resource is land, an example of human resource is labour, while an example of capital good is machine.
As industries continue to grow, the population in will continue to grow as well, either through increased migration or higher birth rate resulting from better economic fortunes. This population increase in population will put pressure on available resources of land, labour and machine. This will in turn cause a reduction in the rate of industrial expansion and growth, thereby slowing down economic activities. To respond to this, industries will have to make backward movement into the outskirts, where there is abundance in supply of factors of production (land, labour and machine).
Answer:
a) Growth rate of earnings
using the sustainable growth rate formula which is the maximum growth rate that a company can sustain without external financing:
Growth rate = ROE * (1 - retention rate)
= 15% * (1 - 40%)
= 15% * 60%
= 9%
(Retention rate = 2/5 * 100 = 40%)
b) Price of equity using dividend growth model:
P₀ = D₀ (1 + g) / (re – g)
D₀ = the current dividend (whether just paid or just about to be paid) = $3
g = the expected dividend future growth rate = from A above (9%)
re = the cost of equity = 12%
= 3 (1 + 0.09) / (0.12 - 0.09)
= $109
c) Price of equity
P₀ = D₀ (1 + g) / (re – g)
= 4 (1 + 0.09) / (0.12 - 0.09)
= $145.33
Explanation:
At the estimated growth rate of 9%, should DFB increase the dividend payout, the price of equity would amount to $145.33 which is higher than the previous price of $109, so DFB is advised to raise its dividend
I do believe this statement to be true
Answer:
b. 65,000 units
Explanation:
The computation of the budgeted production in April month is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units is 60,000 units
Ending inventory units = 75,000 units × 40% = 30,000 units
Beginning inventory units = 25,000 units
Now put these units to the above formula
So, the units would equal to
= 60,000 units + 30,000 units - 25,000 units
= 65,000 units
