Answer:
Market price: 28.90
Explanation:
We will calculate the stock price using the gordon dividend grow model:
D1 = 1.25
grow = g = 6% = 6/100 = 0.06
return= for the return, based on the information give, we will calculate it using the CAPM model:
risk free = 0.04
premium market=(market rate - risk free)= 0.055
beta(non diversifiable risk)= 1.15
Ke =cost of capital = return in the dividend grow formula = 0.10325
Now, we calculate the stock price:
Stock: 28.9017341
Market price: 28.90
Answer:
Explanation:
According to the law of demand,a rise in price leads to a decrease in quantity demanded and a fall in price leads to an increase in quantity demanded.
1.The price of a gallon of 2% milk has risen, therefore, quantity demanded decreases.
2.The price of laser tag has fallen,therefore,quantity demanded increases.
3.The price of dressers and desks has risen,therefore,quantity demanded decreases.
4.The price of pork shoulder has fallen from $3.99 per pound to $1.99 per pound,therefore,quantity demanded increases.
5.Another MP3 album comes free,with purchase of an MP3 album .This means the supplier have effectively halved the price.therefore,quantity demanded increases.
Answer:
B) keep $10,000 of Linnea's down payment.
Explanation:
Since Linnea repudiated the contract, it is considered a breach. Therefore, Harriette is entitled to compensatory damages for the breach of the contract. Compensatory damages only cover the lost revenue from the contract, so if Harriette was able to sell her farm and only lost $10,000 due to Linnea's breach, then she must return the difference = $20,000 - $10,000 (lost) = $10,000.
<u>Answer:</u>$35 Billion
<u>Explanation:</u>
Marginal propensity to consume means the raise in income of the consumer which the consumer is willing to pay for the goods and services. The proportional increase in income of the Italian people will increase their amount spent of goods. MPC differs based on the income of the consumers. Here the Italian government to increase economic activity checks have been send to the customers for spending.
The real GDP can be calculated as follows.
MPC = ($70 billion)(1.5) = $105 billion
GDP= $105 - $70 billion = $35 billion
Debit withdrawals; credit cash is the correct answer.
<h3>What are drawings in accounting?</h3>
- A drawing bank is not in and of itself a bank account.
- Drawing in accounts are the records kept by a company owner or auditor that show how much cash has been taken by business owners.
- These are transfers made for personal use rather than for the profit of the business, yet they are governed in a way that employee earnings are not.
- Because these transfers must be offset against the owner's equity, accurate records must be maintained.
- A separate drawings directly deals with it simpler to keep track of these actions and balance the books at the conclusion of every fiscal year when you need to know how to end your drawings account.
learn more about drawing account refer:
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