Answer:
The maximum that should be paid for this stock today is $9.83
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of DDM. The model bases the price of a stock on the present value of the expected future dividends. The formula for price today under this model is,
Price = D1 / r - g
Where,
- D1 is the dividends expected for the next period or D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
Price = 1.23 * (1+0.031) / (0.16 - 0.031)
Price = $9.83
Answer:
Consumers behave rationally, attempting to maximize their satisfaction.
Explanation:
The principle assumption upon which the theory of consumer behavior and demand is built is:
A consumer attempt to allocate their limited money income among available goods and services so as to maximize their utility (satisfaction).
Utility is described as an amount of satisfaction derived from the consumption of a commodity. Measurement units is utils.
Assume that consumers have complete information about availability, prices and utility levels of all goods and services. All bundles of goods can be ranked based on their ability to provide utility.
The theory is useful for understanding the demand side of the market.
Answer:
$6,240.
Explanation:
Reconciliation Statement
Bank balance before reconciliation $4,590
Add: Deposits in transit 2,600
Less: Outstanding Checks (950)
Reconciled Bank Balance at April 30, 2019 $6,240
Cash balance before reconciliation $6,320
Add: Interest Revenue 60
Less: Bank service charges (140)
Reconciled Cash Balance at April 30, 2019 $6,240
<u>Notes</u>
- Deposit in transit and Outstanding checks are already recorded in company's books but not yet recorded with the bank because these checks might have reached bank after working hours. So, we have to update the bank's record.
- We have to update the cash balance with the information that is with the bank and has been provided to us at the period end. This include the interest revenue, already updated in the bank balance, and bank service charges.
Answer:
How much money do you make in 1 year that is your net worth
Explanation:
The reduction in inventory value at Murray manufacturing is a source of cash
What is difference between use and source of funds?
A transaction is a use of cash if it requires more cash to be spent on its during the period under review whereas for a source of cash, there would a reduction in its cash usage for the company
In this case, inventory value fell from $100 in 2019 to $75 in 2020, reducing by $25, which means that inventory made use of lesser cash in 2020,releasing $25 for other uses, hence, inventory is a source of cash.
Find out more use or source of cash on:brainly.com/question/28341877
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