Answer:
$3.18 (rounded to nearest cent)
Explanation:
FIrst we shall find out the price at the end of year 2:
P1 = D2 ÷ (k-g)
Where,
P1 = price a the end of first year
D2 is the dividend in second year = $0.25
k is the cost of equity = 9.2% =0.092.
g is the growth rate = 2% = 0.02
now,
P1 = $0.25 ÷ (0.092 - 0.02)
=$0.25 ÷ 0.072
=$3.4722222222 (this is estimated price after two years).
Value of share today:
= Price of share after one year × (discounting factor @9.2% for one year).
Discounting factor @9.2% for two years = 1 ÷ (1.092)
=0.91575091575
The value of share today:
= ($3.4722222222) × (0.91575091575.)
= $3.17969068
= $3.18 (rounded to nearest cent).
Answer:
E. all of these alternatives are correct
Explanation:
Zone pricing allows a uniform delivered price to be charged to all buyers in each zone, simplifies the calculation of transportation charges, means making an average freight charge to all buyers within some geographic area and may make it possible to compete with sellers located closer to the buyer
I’m not really sure sorry
Answer:
C. the price effect would become a more significant consideration for each firm that makes automobiles.
Explanation:
The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.
So, this explains the answer.
Answer:
individual he need save = $582.670
Explanation:
given data
time = 20 year
spend = $55,000
interest rate = 7 percent = 0.07
solution
we get here first annuity factor that is express as
annuity factor = .........1
put here value
annuity factor =
annuity factor = 10.59%
and here individual he need save will be
individual he need save = $55,000 × 10.59%
individual he need save = $582.670