Answer:
Answer:B Place the decimal point after 2
Explanation:
All you have to do is multiply 3.12 times 4
Answer:
The correct answer is letter "D": straight line.
Explanation:
Utility represents the satisfaction a person receives from the use of a good or service. In case there is a risk-neutral decision-maker, that individual is unlikely to vary the value he or she provides to the use of products to remain in a comfort zone. However, the utility could vary according to satisfaction the good or service provides in different situations.
Thus, if plotted in a graph, <em>the value representing the horizontal axis and the utility the vertical axis, there will be a straight line departing from the horizontal axis parallel to the vertical axis.</em>
Answer:
The statement would be:
Date: October 31, 2019
Net Income $680,700
Cash dividends $50,000
Stock dividends $127,000
Retained earnings $503,700
The retained earnings are equal to the sum of declared dividends substracted from the net income.
<span>The goal of the campaign or promotion is to build awareness and inform consumers about a company and its product offerings</span>
In order to see if there is still increase in the sale compared with the money spent of campaign , Alonzo is evaluating the effectiveness of the plan. The evaluation of effectiveness is one of the 6 steps of the promotional campaign.
Answer:
a)
P₀ = Div₁ / (Re - g)
- P₀ = current stock price = ?
- Div₁ = next dividend = $8
- Re = equity cost = 10%
- g = constant growth rate = 5%
P₀ = $8 / (10% - 5%) = $8 / 5% = $160
b)
EPS = $12
Return on equity (ROE) = g / b
b = retention rate = 1 - payout ratio = 1 - ($8/$12) = 0.333
g = 5%
ROE = 5% / 0.333 = 15%
c)
Present value of growth opportunity (PVGO) = P₀ - EPS/Re
- P₀ = $160
- EPS = $12
- Re = 10%
PVGO = $160 - $12/10% = $160 - $120 = $40 per share
