Answer:
Required rate of return is 14.99%
Explanation:
Given:
Price of stock (Po)= $23.57
Dividend (Do) = $2
Growth rate (g)= 6% or 0.06
Using dividend growth model to calculate required rate of return:
Substituting values in above formula, we get:
r = 
= 0.1499 or 14.99%
Therefore, required return of company's stock is 14.99%
Answer:
Explanation:
• Initially, As a result of the bond purchase, money supply will increase by $100000.
The reason for the increase in money supply by $100000 is because the federal reserve bought bond of $100000 from Riggie Rich. This is an expansionary policy which will lead to more money in supply.
• As a result of Rich's deposits, the bank will able to give $90000 more in additional loans.
The increase in the additional loans will be calculated by removing the reserve required ratio from the deposit.
= $100000 - (10% × $100000)
= $100000 - $10000
= $90000
• As a result of the purchase by the Federal reserve, the maximum increase in quantity of checkable deposits which could result throughtout the entire banking system will be $1000000.
The increase in checkable deposits will be the change in reserve multiplied by 1/RRR. This will be:
= $100000 x 1/10%
= $100000 × 1/0.1
= $100000 x 10
= $1000000
In United States, the oranges are available round the year because the grocery stores sell oranges that are grown in locations with similar climates but different growing seasons.
<u>Explanation</u>:
Orange is a seasonal fruit. The growth of orange can be witnessed from November to April in the United States of America. The supply of orange will reach its peak during January-March.
Oranges are good source of vitamin C and are rich in nutrition. The antioxidant in the orange helps in lowering the risk of heart disease and kidney stones.
In United States, the oranges are available round the year because the grocery stores sell oranges that are grown in locations with similar climates but different growing seasons.
Answer: Material Resource.
Explanation: Material resource are utilities added to an organization that enables the organization to function smoothly and makes it easier for the organization to achieve its goals.
The software added to Mike's company is a material resource that helps the company online sales to be more successful.
A change from straight-line depreciation to double-declining-balance depreciation would be reported as a restatement of the prior period statements only.
The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset.
An example of Depreciation – If a delivery truck is purchased by a company with a cost of Rs. 100,000 and the expected usage of the truck are 5 years, the business might depreciate the asset under depreciation expense as Rs. 20,000 every year for a period of 5 years.
learn more about depreciation here
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