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kirill [66]
3 years ago
9

Use the information for the question(s) below. Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of

this year and a $1.50 per share at the end of the second year. You expect Von Bora's stock price to be $25.00 at the end of two years. Von Bora's equity cost of capital is 10%. Suppose you plan to hold Von Bora stock for only one year. Your capital gain from holding Von Bora stock for the first year is closest to:
Business
1 answer:
ludmilkaskok [199]3 years ago
6 0

Answer:

the capital gain for the first year is $23.15

Explanation:

The computation of the capital gain for the first year is shown below;

Current value = Future dividend and value × Present value of discounting factor(rate%,time period)

= $1.4 ÷ 1.1  + $1.5 ÷ 1.1^2 + $25 ÷ 1.1^2

= $23.15

Hence, the capital gain for the first year is $23.15

The same should be considered and relevant too

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Which of the following are true of an economy operating below full employment? Check all that apply. Actual real GDP is less tha
scoray [572]

Answer:

The economy has an unemployment rate higher than the natural rate of unemployment.

Explanation:

Full Employment is when all workers able & willing to work, are employed.

Unemployment is when a person able & willing to do a work , doesn't get work.

However, there is certain 'natural' level of unemployment normalised during efficient running of economy. It involves frictional & structural unemployment. Frictional unemployment is temporary unemployment of people shifting their jobs and Structural unemployment is temporary unemployment due to industrial reorganisation (eg : technological change).

So, Economy being below Full Employment implies that economy has unemployment level above natural rate of unemployment.

4 0
3 years ago
A simple discount note results in
Nikolay [14]
A simple discount note results in i<span>nterest that are deducted in advance, this can just be simply called a discount. </span><span> It is usually being confused with markdown. </span><span>Discount is a deduction in the price of a product base on the purchase of the customer while markdown is a reduction of price based on inability to be sold. </span>
6 0
3 years ago
Read 2 more answers
Which one of the following is not a right of common stockholders?a) To share proportionately in all management decisions.b) To s
lozanna [386]

Answer: Option A

Explanation: Common stockholders refers to the holders of common equity of an organisation. These shareholders are actually the owners of the organisation. They have the potential to earn maximum benefit and bear the maximum risk.

They have the right to select the auditor and board of directors but they cannot interfere with the management decisions. This right stands in the domain of the top managers which are appointed by these shareholders.

Thus, we can conclude that the correct option is A .

5 0
3 years ago
If we had a situation of Diminishing Marginal Productivity, then this would be great news for the firm. Senior management loves
juin [17]

Answer:

The correct answer is the second option: False.

Explanation:

To begin with, the well known term of <em>"Diminishing Marginal Productivity"</em> is understood to be an economic law whose main purpose is to explain that given a certain level of an input, the production of the company will start to go down eventually after adding more and more of that variable. Therefore that this theory states that when a company adds more of a factor of production, everything else constant, when it reaches a certain level that input will start to affect the output of the good and with it the profits of the business. That is why that if the company is in a situation of diminishing marginal productivity the senior management would not be pleased.

3 0
4 years ago
Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of $60,000 that can be sold for $82,000 l
Deffense [45]

Answer:

Income (loss) 77080 76650

Explanation:

Timberlake Company

Sell Lease

Revenue 82000 84600

Expense -4920 -7950

Income (loss) 77080 76650

Therefore Company should sell the equipment

6%×82,000 =4920

8 0
4 years ago
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