Answer:
The value of the stock today is $28.48
Explanation:
To calculate the value of the stock today, we will use the Dividend discount model which bases the value of a stock based on the present value of the expected future dividends from the stock. The value of the stock today using this model should be,
P0 = 1 / (1+0.1)^3 + 1 * (1+0.4) / (1+0.1)^4 + 1 * (1+0.4)^2 / (1+0.1)^5 +
[ (1 * (1+0.4)^2 * (1+0.05) / (0.10 - 0.05)) / (1+0.1)^5 ]
P0 = $28.48
Answer:
Zork's cost of equity capital is 12.85%
Explanation:
Cost of equity=Rf+Beta* Mrp
Rf is the risk-free rate of 4.6% which is rate of return on government security
Beta of the stock is 1.13
Mrp is the market risk premium which is the incentive given over and above the risk free rate in order to compensate investors for risk taken by investing in stock i.e 7.3%
cost of equity=4.6%+(1.13*7.3%)=12.85%
Answer:
1. This is true because demand in market A is more inelastic which means demand curve and marginal revenue curve are steeper in this market. at any quantity marginal revenue will be higher in market A than in market B
2. This is true because market where demand is inelastic have a higher price. This is because revenue is increased when higher price is charged in market with inelastic demand.
3. This is false/uncertain because when price is higher in market a the quantity will be lower relativity. This is due to the downward sloping demand function in which price is increased quantity will decline.
Explanation:
Answer:
Once your body gets used to a certain movement your muscle are ready for it just about everyday. If you dont do it all at once then you wont be getting all the stuff that you want.
Explanation:
Answer: Organisations such as IASB and FASB
Explanation: Conceptual framework refers to the system that helps the organisations such IASB and FASB to create rules and standards for financial reporting, that will eventually help the users of financial statements.
This framework consists of ideas and objectives for the above mentioned boards.
Thus, the conceptual framework serves authorities such as IASB and FASB.
