Answer:
current share price is $71.05
Explanation:
given data
grow at a rate = 20 percent
time = 3 year
growth rate falling off = 8 percent
dividend = $1.45
solution
we get here price of the stock in Year 3 that is 1 year before the constant dividend growth that is
P(3) = D(3) × (1 + g) ÷ (R - g) .............1
P(3) = D0 (1 + g1)³ × (1 + g2) ÷ (R - g)
P(3) = 
P(3) = $90.206
and
then price of the stock today is present value of first three dividends + present value of the Year 3 stock price
so price of the stock today is
P(0) = 
P(0) = $71.05
Answer:
$2 per hour
Explanation:
<u>Given</u>: Budgeted indirect cost $4000
Budgeted allocation base ; 2000 hours
Actual indirect costs incurred: $4200
Actual allocation base : 2050 hours
Standard rate for allocation of indirect cost = Budgeted indirect cost/Budgeted allocation base
= $4000/2000 hrs
= $2 per hour
Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.
Answer:
Option (B) is correct.
Explanation:
Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.
Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.
Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.
Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.
The correct option is C.
Student loans that originated from the federal government are called federal students loans. This type of loan usually allows the borrower to pay lower interest and it has more flexible repayment options compare to loans from other sources. The interest rate of the loan is usually fixed over time.<span />
Answer:
sale of a new share of stock to an individual investor
Explanation:
Securities are created in the primary market. With an IPO which stands for initial public offering, new stocks are sold to the public by companies on a first time basis.
The sale of a new share of stock in the question is an example of a primary market transaction.
