Answer:
Explanation:
Adams division:
Net income - 605000
Minimum acceptable income = [Total capital employed*Rate of return] = 4000000*0.08=320000
Residual income= NI-Minimum acceptable income=605000-320000=285000
Jefferson division:
Net income - 315000
Minimum acceptable income = [Total capital employed*Rate of return] = 3250000*0.08=260000
Residual income= NI-Minimum acceptable income= 315000-260000= 55000
To apply the dividend discount model to a particular stock, you need to estimate the Sum of Present Value of Dividends and present Value of Stock Sale Price. This dividend discount model or DDM model price is the stock's intrinsic value.
The dividend discount model is a quantitative method used for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value.
If the value obtained from the dividend discount model is higher than the current trading price of shares, then the stock is undervalued and qualifies for a buy, and vice versa.
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Answer:
It suggests that they are not doing anything competitively different.
Explanation:
Network externalities if well harnessed should bring about an increase in end users satisfaction and value derived.
Multi housing costs, ordinarily, and when taken as a whole, should results to an overall minimization of the total costs. Economics of scales and other resources are centrally allocated here, and the effect should be a gain to the entity.
Level of differentiation across firm's offerings - products or services, signals the procedures an organization adopt to mark the uniqueness of their products or services. It shows how distant they are among the other varying sets.
Thus, from the case given, the four firms have the same share of the market - 25%. The implication is that as far as we are concerned, their level of activities and postures in the market is same and/or similar. This ultimately cuts across the network externalities, multi housing costs and the level of differentiation of firm's offerings. They are thus not competitively different.
Answer:
230 people
Explanation:
a. What is the size of the labor force
The labor force is the sum of the number of employed and unemployed, unemployed meaning people who lack employment, but who want to work, and are looking for a job.
First we substract the people that is not in the labor force, and those under 16 years of age from the total population: 500 - 120 - 150 = 230.
Of this figure, 150 people are unemployed, 23 are part time workers looking for full time employment (they are employed), and the rest: are 57 employed people.
So the size of the labor force is effectively 230 people.
Based on the merits and demerits of stocks and interest incomes, it is false to say that one is better than the other.
<h3>Which is better between interest income and stocks?</h3><h3 />
Interest income is more appealing to certain people such as those who don't want to incur a lot of risk because interest-based investments such as bonds are generally safer.
Stocks are appealing to people who don't mind higher levels of risk as stock returns are generally riskier.
These two things are therefore subjectively better depending on the risk tolerance of the investor.
Complete question:
Trading in company stocks> interest income only
True or False.
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