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3 years ago

Match the items with the appropriate definitions. Items which are not definitions will be used.

Business

1 answer:

MrRissso [65]3 years ago

3 0

Answer:

Double coincidence of wants - a situation where two individuals each want some good or service that the other can provide

Double coincidence of wants occurs when in a transaction between two or more individuals, each want to obtain the good or service that the other is offering.

Barter - trading one good for another without the use of money

In barter, people trade a good or service for another good or service, without the use of money as medium of exchange. An example of barter is trading a cow for a sheep.

Money - whatever serves society in three functions: medium of exchange, store of value, and unit of account

Money is any good that serves the three purposes of money, store of value to serve as a medium to save or to accumulate wealth, medium of exchange to trade goods and services, and unit of account to measure the value of goods and services under a common guide.

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The stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be

Lera25 [3.4K]

Answer:

Check below for the solution.

Explanation:

A) Earning Per Share, EPS = $2

Dividend Pay out ratio = 50%

Required rate of return = (Expected Dividend next year / Current selling price) + Growth Rate

Expected Dividend per share next year = EPS x Dividends pay-out ratio

Expected Dividend per share next year = $2 x 50% = $2 * 0.5

Expected Dividend per share next year = $1

Return on Equity, ROE = EPS / Current selling price

ROE = $2 / $10 = 0.20 = 20%

Growth Rate = ROE x (1-Dividend pay-out ratio)

Growth Rate = 0.20 x (1-0.50) = 0.10 = 10%

Required Rate of Return = (Expected Dividend next year / Current selling price) + Growth Rate

Required Rate of Return = ($1 / $10) + 0.10 = 0.20 = 20%

B) If all the earnings are paid as dividends, there won’t be any amount left to invest for growth and hence there won’t be any growth in the company. Also, since the required Rate of Return is equal to its ROE, there won’t be any changes.

C) Present Value of Growth Opportunity (PVGO) = 0

This is because with all earnings paid out as dividends, there won’t be any growth and the required rate of return will be equal to the ROE.

D) Since the ROE is equal to required rate of return, there won’t be any impact of cutting down the dividends pay-out. The residual income with lesser pay-out ratio will be invested by the company in available projects that is expected to earn 20% and ROE is also same. Since, there is no changes in the earnings figures, the stock price would remain $10.

E) There is no relationship between Nogro’s dividend payout policy and its price as no impact is experienced in its share prices due to change in its dividend policy.

F) This is because the ROE and the required rate of return are equal.

7 0

4 years ago

What refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by compani

Elodia [21]

Answer:

circulation audit

Explanation:

A circulation audit is a term that describes a distinct form of audit which validates publisher's real printing and distribution, and at the same time, verifies publisher's books, records, and documents relating to circulation.

In other words, it is considered as a standardized, authoritative statement of a publication's printing, distribution, and readership.

Hence, CIRCULATION AUDIT refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by companies such as ABC

4 0

3 years ago

KAJ Incorporated purchased a machine costing $250,000 by paying $35,000 and signing a $215,000 note payable. How would this tran

Firdavs [7]

KAJ Incorporated purchased a machine costing $250,000 by paying $35,000 and signing a $215,000 note payable. How would this transaction be reported within the cash flow from investing activities section of the cash flow statement? ... It would not be reported in the investing activities section of the cash flow statement.

7 0

3 years ago

Haskell Motots common equity on the balance sheet totals $700million and the company has 35 million shares of common stockoutsta

Ludmilka [50]

Answer:

Statements A and C are correct.

Explanation:

Book Value per share is the value shown in the balance sheet, which is calculated by:

Formula: $BV = \frac{Total common holder stocks}{number of common shares}$

After putting values in the formula we get:

$BV = \frac{700m}{35m} = 20$

Market value per share is calculated on the bases of prices of share according to the market. For example, if your company has $10000 share outstanding and the price in market per share is 50 then the market value would be $500000.

So, we have to calculate market value per share for that we have to reverse the actual calculation, which means we will have to divide total market value of outstanding shares by the total number of outstanding shares to get market value per share:

$MV per Share = \frac{10m}{35m} = 28.5$

<em>Hence, statement A and C both are correct. </em>

4 0

3 years ago

Productivity is declining when: A) the number of hours worked exceeds the number of workers. B) population growth exceeds real G

SOVA2 [1]

Answer: b. When population exceeds real GDP growth

Explanation:

Gross domestic growth(GDP) is the monetary value of all finished goods and services done within in a country over a period of time. When the population of a country exceeds what it produces there would be record in decline in productivity of the country. This is a serious problem as it could lead to other factors as scarcity(having high demand and low supply), it could lead to poverty as there won't be much jobs as production is not commensurate with population.

5 0

4 years ago

Read 2 more answers