Answer:
Studying his biology test
Explanation:
opportunity cost refers to the cost of the forgone alternative inorder to enjoy another service
Answer:
fire & natural distaster.
Explanation:
homeowners insurance covers things that can't be prevented. :)
Answer:
First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.
D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %
Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607
Growth Rate post Year 5 = 4.08 %
D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459
Required Return = 13.6 %
Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98
Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34
Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %
Total Required Return = 14. 6 %
Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %
Answer:
A) $424,000
Explanation:
Madison Corporation's current earnings and profits for 20x3 would be:
reported taxable income - accrued federal income taxes + regular depreciation - E&P depreciation + net capital loss carryover =
$400,000 - $136,000 + $200,000 - $60,000 + $20,000 = $424,000
Answer:
the average cost to reduce
Explanation:
In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.
This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.
