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just olya [345]
3 years ago
10

Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the

required rate of return of the stock increases, the price of the stock will:
Business
1 answer:
ozzi3 years ago
5 0

Answer:

decreased

Explanation:

As we know that there is a negative relationship between the rate of return i.e. required and the price of the stock. That means if the required rate of return rises, than the price of the stock reduced and vice versa

As in the given situation it is mentioned that the required rate of return increase so the price of the stock is decreased

The same is to be considered

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What are some jobs people with disabilities cannot work?
Vitek1552 [10]

Answer:

depends on the disability

Explanation:

depending on what kind of disability they have, people with disabilities cant do certain things

7 0
2 years ago
You have been working at your job for over a year. your boss starts offering you new assignments with weekly meetings in order t
miss Akunina [59]
I reach my goals im now on a good
8 0
3 years ago
Read 2 more answers
Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of b
tatyana61 [14]

Answer: a. rise, the supply of bread to decrease, and the demand for potatoes to increase.

Explanation:

According to the Economic law of SUPPLY AND DEMAND, less supply means HIGHER prices simply because the good is becoming scarce not unlike fuel during global oil shortages.

Now, we are told that the drought reduced the supply for wheat which means the SUPPLY of wheat has DECREASED and this will translate to the SUPPLY of Bread DECREASING as well. According to the aforementioned law, prices of Bread will therefore RISE.

Since Bread prices have risen, people will seek alternatives to bread as they may not want to pay the high price. This will lead them to choosing the alternative to bread which in this case are Potatoes which would therefore INCREASE the DEMAND for potatoes.

3 0
2 years ago
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor
Arturiano [62]

Answer:

Cost of common equity is 15.7%  and WACC is 7.2%

Explanation:

D1 is  

D1= 2.25 (1+0.05)

The cost of common equity is  

Rs = 2.36/ 22.00 + 5% =0.157= 15.7%

The cost of common equity is weighted average cost of capital (WACC)  

WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)

WACC = 0.03 *0.6 + 0 + 0.054

WACC = 0.018 + 0.054

WACC = 7.2%

4 0
3 years ago
Time Value of Money: Basics Using the equations and tables in Appendix 25A this chapter, determine the answers to each of the fo
kow [346]

Answer:

Present value (PV) = $3,000

Interest rate (r) = 6% = 0.06

Number of years (n) = 2 years

Future value (FV) = ?

FV = PV(1 + r)n

FV = $3,000(1 + 0.06)2

FV = $3,000(1.06)2

FV= $3,000 x 1.1236

FV = $3.370.80                                                                                                                                                                                                                                                                                    

Explanation:

In this case, there is need to compound the present value for 2 years at 6% interest per annum. The formula to be applied is the formula for future value of a lump sum (single investment).

6 0
3 years ago
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