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WITCHER [35]
3 years ago
15

You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in divid

ends and $32 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is ________ if you wanted to earn a 10% return.
A. $30.23
B. $24.11
C. $26.52
D. $27.50
Business
1 answer:
Vlad1618 [11]3 years ago
5 0

Answer:

The maximum that should be paid for the stock today is $30.23.

Explanation:

The total return on a stock is made up of dividend received on the stock plus the capital gain received from selling the stock. The holding period is one year that means a 10% return on the amount invested in required for one year. We need to calculate the present value of the total of selling price plus the dividend to calculate the price of the stock today. As 10% return is required, the discount rate is also 10%.

PV = (1.25 + 32) / 1.1

PV = 30.227 rounded off to 30.23

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Toys-r-us is almost finished building a new store and will soon be having a grand opening celebration. management wants to build
drek231 [11]

Toys r us, the toy shop has always stood out in its advertising campaigns, using all conventional social networks, and paying to do the most original ads, spaces like Instagram, Twitter and Facebook are some of the social networking they would be using to show their potential customers the progress of the new store, but that does not end there, they will also invest big amounts of money in screens "Etch a Sketch" in bus stops, and vans promoting their new opening and inviting everyone to the big event.  
3 0
4 years ago
For a recent year, Best Buy reported sales of $42,410 million. Its gross profit was $9,690 million. What was the amount of Best
LiRa [457]

Answer:

The amount of Best Buy's cost of goods sold was $32,720 million

Explanation:

cost of goods sold = sales - gross profit

                               = $42,410 million - $9,690 million

                               = $32,720 million

Therefore, The amount of Best Buy's cost of goods sold was $32,720 million

6 0
4 years ago
If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two
andrey2020 [161]

Answer:

PPF : Downward Sloping Straight Line

Explanation:

PPF is the locus of product combinations that an economy can produce, given resources & technology.

It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.

Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.

∆ Good sacrifised / ∆ Good gained

If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line

Eg : Good1    Good2     MOC [∆Good2/∆Good1]

      0               20             _        

      10             10           -10/10 = -1                  (10-20)/(10-0)

       20              0           -10/10 = -1                   (0-10)(/20-10)

So , same (1) good 2 is sacrifised to attain a good 1 each time.

However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.

5 0
3 years ago
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value
jolli1 [7]

Answer:

-3 million dollars

Explanation:

we have EVA = economic value added

to ge the EVA, we use this formula :

(operating return on the assets - cost of the total capital) multiplied by the total assets

total assets = 100 million

operating return = 12 percent

cost of capital = 15 percent

the EVA = 12% - 15% * 100000000

= -0.03 * 100000000

= -3,000,000 dollars

b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.

3 0
3 years ago
If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:
OLEGan [10]

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

8 0
3 years ago
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