Answer:
The price of the stock will be $76.97
Explanation:
We first need to determine the constant growth rate on dividends.
Growth rate (g) = (D1 - D0) / D0
Growth rate (g) = (2.08 - 2.00) / 2 = 0.04 or 4%
To calculate the price of a stock today whose dividends are growing at a constant rate, we use the constant growth model of DDM. The price of the stock today under this model is,
P0 = D1 / ( r - g )
Where,
- D1 is the dividend expected for the next year
- r is the required rate of return
- g is the growth rate
Thus, to calculate the price of the stock today at t=10, we will use the dividend expected in Year 11 or D11.
D11 = D0 * (1+g)^11
Where P10 is the price 10 years from today.
P10 = 2 * (1+0.04)^11 / (0.08 - 0.04)
P10 = $76.97
Answer:
Perishability
Explanation:
Perishability describes how business services cannot be stored. As we all know, we've defined services as offering of an intangible commodity for sale. This intangible commodity can neither be stored, saved, returned or resold after they've been used. Thus, perishability in terms of services refers to how businesses cannot be stored for sales in the future. In this case, hotels tend to charge less during other times of the year as they cannot store their services to be rendered only in the holiday times of the year.
Answer:
c. $0.70.
Explanation:
The consumer surplus is determined by subtracting Equilibrium price from willing price
Here there are 3 willing prices which are greater than Equilibrium price. The price to buy the forth can is $0.40 which is below the equilibrium price of $0.55, so he will not buy the forth can.
Willing price for first can (W1) = $0.95
Willing price for second can (W2) = $0.80
Willing price for third can (W3) = $0.60
The Equilibrium price (E) is $0.55
Consumer Surplus = (W1 - E) + (W2 - E) + (W3 - E)
Consumer Surplus = ($0.95 - $0.55) + ($0.80 - $0.55) + ($0.60 - $0.55)
Consumer Surplus = $0.40 + $0.25 + $0.05
Consumer Surplus = $0.70.
Answer: a cash deposit into
banking system on the money supply<span>
</span><span>
<span>The
money multiplier refers to the ratio of deposits to the reserves in a certain
banking system. The money multiplier formula is caused by a cash deposit in a
bank on the money supply.</span></span>
Answer:
C. Ideal standards are better suited for cash budgeting than practical standards
Explanation:
The standards that basically handles no work interruptions or no machine breakdown is called ideal standards.
