Answer: 6.42%
Explanation:
To calculate this, we use the formula for the Dividend Discount Model/ Gordon Growth Formula as follows:
P = D1/(r - g)
Where,
P = current stock price
D1 = Next dividend
r = required return
g = growth rate
We can make r the subject of the equation by,
P = D1/(r - g)
P(r - g) = D1
r - g = D1/P
r = D1/P + g
Calculating therefore we have,
r = 2.65/43.15 + 0.045
= 0.06417728852
= 6.42%
6.42% is the required return.
If you need any clarification do comment.
The projects that bricks construction can do are :
- Lack of housing >> They can provide more houses that available for their workers
- Unemployment >> They could teach some finance/entrepreneurial skills to the individuals nearby
- Poor Education and training >> They could build some sort of education center for specific job
Answer: The answer is given below
Explanation:
Holding costs are the costs that.has to do with the storage of inventory that were not sold. costs and they are storage space, price of damaged or spoilt goods, labor, and insurance.
It should be noted that with regard to holding cost, increasing peak capacity will be expected to reduce since the capacity is typically inversely proportional to the theory of the holding cost as there may be a reduction in the holding cost so as to increase the capacity.
Answer:
Option (b) is correct.
Explanation:
(a) Net Income:
= Revenues - Expenses
= $77,000 - $48,600
= $ 28,400
(b) Retained earnings :
= Net Income - Dividend
= $ 28,400 - $7,700
= $20,700
(c) Stockholders' Equity:
= Total assets - Total Liabilities
= 185,000 - $105,000
= $80,000
Therefore, the retained earnings at December 31, 2016 were $20,700.
