Answer:
$24.18
Explanation:
Dividend for year 0 = $2.2
Dividend at year end 1 = $2.2
Dividend at year end 2 = $2.2(1 + .05) = 2.31
Dividend at year end 3 = $2.31 (1 + .05) = 2.4255
Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378
Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932
Dividend at year end 6 = $3.0932 (1 + .09) = 3.371
MPS = ![\frac{D_{1} }{(1\ +\ k)^{1} } + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} } +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} } [\frac{D_{6} }{(k\ -\ g)\ ]}](https://tex.z-dn.net/?f=%5Cfrac%7BD_%7B1%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B1%7D%20%7D%20%20%2B%20%5Cfrac%7BD_%7B2%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B2%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B3%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B3%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B4%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B4%7D%20%7D%20%20%2B%5C%20%5Cfrac%7BD_%7B5%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%5C%20%2B%20%5Cfrac%7B1%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%20%5B%5Cfrac%7BD_%7B6%7D%20%7D%7B%28k%5C%20-%5C%20g%29%5C%20%5D%7D)
where MPS = Market price of share
D= Dividend for different years
k = Cost of equity
g= constant growth rate after year 5
putting values in above equation we get,
MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462
MPS = $24.18
The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>
The <u>law of increasing relative cost </u>states that the opportunity cost of producing a good always rises as one produces more of it.
According to the law of increasing costs, production eventually loses efficiency as it grows. The labor expenses for each additional item will increase, for instance, if increased production requires overtime work from your workforce.
Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists often refers to opportunity cost. Cost is frequently mentioned in conversations or on the news.
According to the law of increasing opportunity cost, the cost of manufacturing the next unit rises as you keep up with the production of a given good.
Find more about opportunity cost
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Answer:
Find attached complete question:
The correct option is A,$ 746,200
Explanation:
The total standard costs for the whole items of inventory completed in the month of July is the sum of the beginning balance of inventory plus direct materials costs, direct labor cost as well as manufacturing overhead cost applied.
Total cost of completed units=$44,100+$564,900+$195,300+$315,000=$ 1,119,300.00
standard cost per unit=$1,119,300.00/21000=$53.3
Cost of goods sold(unadjusted)=$53.3
*14,000=$ 746,200.00
Answer: A. Can I afford this?
Explanation: A P E X
Answer:
Explained below.
Explanation:
The things I will be concerned about if I am going to buy television ads for my business are given as follows:
* I will choose the right time of the day for the advertisement.
* I will be staying within my budgetary limits as well.
* I will check my ads after it has been posted, just a little component of my ad may be dropping the mark.
