The LM curve illustrates that when income increases:_______

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However

suter [353]

Answer:

The stock will trade for 4.30 dollars in the market

Explanation:

The stock will be valued at the discounted value of their future cash flow.

w calculate the cas flow by multiplying by the grow rate given.

Then we discount using the present value of a lump sum:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $0.5000

time 3.00

rate 0.18

$\frac{0.5}{(1 + 0.18)^{3} } = PV$

PV 0.30

Then, for the entire of the dividend after year 6th we use the gordon model:

dividends / (rate - grow) and then we discount that

$\frac{dividends}{return - growh}$

Y# Cashflow Discounted

0 0

1 0

2 0

3 0.5 0.304315436

4 0.825 0.425525822

5 1.36125 0.595014921

6 1.4565375 2.971555503

Total 4.296411682

8 0

2 years ago

The following information is available for Blossom Company:

Aleonysh [2.5K]

Answer:

Total Assets = $124,510

Total Liabilities = $38,320

Total Stockholders' equity = $86,190

Explanation:

Blossom Company

Balance sheet

As at December 31, 2022

Assets

Current assets

Cash $6,390

Accounts receivable 2,100

Supplies 3,800

Inventory 2,920

Total current asset $15,210

Non-current asset

Equipment (net) 109,300

Total assets 124,510

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $4,500

Interest payable 670

Unearned service revenue 820

Salaries and wages payable 830

Total current liabilities $6,820

Long-term liabilities

Notes payable 31,500

Total liabilities $38,320

Stockholders' equity

Common stock 58,900

Retained earnings (Balancing amount) 27,290

Total stockholders' equity $86190

Total liabilities and stockholders' equity $124,510

8 0

2 years ago

Jonathon works for a U.S. company that doesn't produce goods domestically, but instead buys them from other countries and resell

TiliK225 [7]

Answer:

A:countertrade.

brainlist answer

8 0

2 years ago

A country's overall level of interest rates should have an impact on the financial account of the BOP. Relatively low real inte

Genrish500 [490]

Answer:

a. True

Explanation:

Yes! the given statement is very true, because as we know that all the level of a nation's rate of interest has an influence on the BOP ( generally known as Balance Of Payments ) financial account, and also relatively low real interest rates are generally encouraged.

An outflow of funds are been pursued at a higher interest rates in an another nation's currency as well.

7 0

2 years ago

Which of the following individuals are required to pay taxes to fund Social Security and Medicare?

Xelga [282]

Answer:

Correct option is (D)

Explanation:

Employees, employers and self employed are supposed to contribute to fund social security and medicare.

Contribution made by each party comes under different categories. Employees contribute to social security and medicare in the the form of FICA taxes which could be withheld by the employers. Employees pay 50 percent and the remaining 50 percent is paid by the employer.

Self employed contribute in the form of self employed taxes.

4 0

2 years ago

The LM curve illustrates that when income increases:________.