Answer:
Current share price=$1.49
Explanation:
The current share price of the stock can be expressed as;
Current share price=D1/(k-g)
where;
D1=Expected annual dividend per share
k=required rate of return
g=growth rate of dividend
In our case;
D1=Average dividend per share=(20+16+15+8.5)/4
D1=59.5/4=$14.875
k=15%
g=5%
Replacing;
Current share price=14.875/(15-5)
Current share price=14.875/10
Current share price=$1.49
Answer:
The basic EPS is $11.50
Explanation:
The basic earnings per share is the amount of net income that is earned per share of common equity or the amount of net income attributable to each share of common stock. The basic earnings per share (EPS) is calculated using the following formula,
Basic EPS = (Net Income - Preferred stock dividend) / Weighted average number of common shares outstanding
The preferred stock dividend for the period was = 7 * 2700 = 18900
Basic EPS = (593900 - 18900) / 50000
Basic EPS = $11.50
1. Illegal and unreported economic activity: While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.
2. Home production and bartered goods/services: If cash doesn't change hands, the transaction will not be included in GDP. One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.
Answer:
- The Demand is given by
- The supply curve is by
Consumers will face a price of 33.29 and the equilibrium quantity will be 43.42.
These results illustrate that as a consequence of the tax, the price faced by consumers will be higher, quantity sold be lower, and producers will receive less for their product sale.
Explanation:
- The Demand is given by
- The supply curve is by
In the absence of taxes 
and 
.
An ad-valorem tax 
generates now that
So the new equilibrium is
Replacing in the demand equation we get the equilibrium quantity
