Stopping a vehicle with good brakes from 20 miles per hour under good conditions requires about:

just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 perce

IceJOKER [234]

Answer:

P5 = 10.41

Explanation:

To calculate the stock value with dividends for the fifth year the following formula would be used:

$P5 = \frac{Div_{0} * (1 + g)^{6} }{(r-g)}$

Where:

$Div_{0} =$ The first Dividend Paid.
G = Growth Rate.
R = Required Return.

Given Data:

$Div_{0} =$ $1.15

Growth Rate = 12.3%

R = 0.75%

P5 = ?

Substituting the values in the formula

$P5 = \frac{1.15 * (1 + .0075)^{6} }{(12.3-.0075)} = 10.41$

7 0

3 years ago

Mr. Benjamin salgado invested his savings to salgado and delgado construction corporation amounting to php500,000 in cash and eq

ohaa [14]

Answer:

Mr. Benjamin has invested total php 750,000 in Salgado and Delgado construction corporation.

Explanation:

The investment made by Mr. Benjamin in cash and as an equipment both will be considered as investment made in the company. The percentage of stake will be calculated by considering both forms of investments. Mr. Benjamin will have controlling stake in Salgado and Delgado corporation. The company can receive dividends according to percentage of stake declared by the company.

7 0

3 years ago

Tom knows that the title insurance company made a mistake on his property title. Because of their mistake, his neighbor now has

gayaneshka [121]

Answer:

The correct answer is d. risk aversion.

Explanation:

Risk aversion is an investor's preference for avoiding uncertainty in their financial investments.

Due to this attitude towards risk, this type of individuals directs their investment portfolio to safer financial assets even though they are less profitable.

The phenomenon of risk aversion implies by definition a certain level of risk rejection by a person who invests in financial markets. A person may face a risk aversion situation, be risk neutral or be risk prone.

7 0

4 years ago

Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the te

zhuklara [117]

Answer:

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

Explanation:

Then alpha should produce only 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour.

If Alpha produces oranges there will be a loss because he produces less oranges. But Beta 's choice will not affect the trade.

There are no incentives for Beta to specialize and trade with Alpha.

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

4 0

3 years ago

Bakers are much likely to supply pastries to the market if property rights are not enforced. In the presence of market failures,

bixtya [17]

Answer:

1) When there is only one car dealership in a small town, giving the dealership the ability to influence the price of cars, market failure is due to <u>MARKET POWER. </u>

2) When a manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream, market failure is due to <u>EXTERNALITY.</u>

Explanation:

The car dealership has an excessive market power , which refers to the firms ability to increase the price of its products (cars) above the price of a competitive market.

When the manufacturing plant dumps chemical wastes into the river, it is causing a negative externality on the town's water supply. This means that the town (which is a third party in this case) is suffering from the actions of another party's economic transactions.

6 0

3 years ago