Answer:
A.P(0)=$48.89
B.P(1)=$51.56
C.P(0)=$49.35
Explanation:
A. Calculation for what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two year
Using this formula
P(0)=Dividend per share/Percentage of Equity cost of capital +(Dividend next year+Stock price)/Percentage of Equity cost of capital
Let plug in the formula
P(0) = 2.88/ 1.103 + (3.01+ 53.87) / 1.103^2=
P(0)=2.611+56.88/1.216609
P(0)=59.491/1.216609
P(0)=$48.89
b. Calculation for what price would you expect to be able to sell a share of Acap stock in one year
Using this formula
P(1)=(Dividend next year + Stock price)/Percentage of Equity cost of capital
Let plug in the formula
P(1) = (3.01 + 53.87) / 1.103 = $50.00
P(1)=56.88/1.103
P(1)=$51.56
c.Calculation for what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year
Using this formula
P(0)=(Dividend per share + P(1)/Percentage of Equity cost of capital
Let plug in the formula
P(0) = (2.88 + 51.56) / 1.103
P(0)=54.44/1.103
P(0)=$49.35
Therefore compare to the answer in (a)
if you planned to hold the stock for two year you will have $48.89 and if you planned to hold the stock for one year you will have $49.35.
Answer:
D
Explanation:
Studying MGMT 4010 Ch S11 on Quizlet: https://quizlet.com/304737596/mgmt-4010-ch-s11-flash-cards/?x=1jqU&i=utx3h
Answer:
C) achieved impressive growth rates of real GDP per person during 1995-2009.
Explanation:
First of all, it is GDP per capita, not GDP per person.
If we want examples to prove this argument, all we need to do is look at China, India, Brazil, South Africa and even Russia (to a lower extent). These are the famous BRICS, countries that had huge growth rates during that period (1995 - 2009). After the great recession (2008 - 2010) their economic growth slowed down.
Answer:
E) output
Explanation:
The farmer's corn and pumpkins, profits, and losses are considered output.
In economy output represents the amount of goods or services produced by a business during a certain period of time. The goods can either be sold of held in inventory for a later sale (services cannot be stocked).
The farmer produces and sells pumpkins and corn, and depending on the sales price, the output volume and his costs, he will either make a profit or have a loss.
Answer:
Entity relationship modeling enables us to describe business information (data) and its inherent structure. The entity relationship model is represented as a diagram, known as the entity relationship diagram (ERD). ... This model is also used in later stages of business system design and development.
Explanation:
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