Answer: $49.87
Explanation:
Based on the information given,
D1 = $4 × (100% + 21%) = $4 × 1.21 = $4.84
D2 = $4.84 × 1.21 = $5.8564
Value after year 2 will be:
= (D2 × Growth rate) / (Discount rate -Growth rate)
= ($5.8564 × 1.04) / (0.14 - 0.04)
= $6.09/0.1
= $60.9
Then, the current share price will be:
= 4.84/1.14 + 5.8564/1.14² + 60.9/1.14³
= 4.25 + 4.51 + 41.11
= $49.87
I was stuck on the same thing in my class test. I ended up failing but if I get the answers to it I’ll totally send them to you!!!
I think is 475848 because I just timed by 48 so I got 475848
Answer:
In the range of diseconomies of scale
Explanation:
Economies of scale refers to a concept whereby a firm accrues cost advantage owing to it's increased scale of production.
Economies of scale points towards efficient production.
Conversely, Diseconomies of scale refers to the phase wherein a firm experiences cost disadvantages owing to increase in organizational operations and output level.
Reasons for operation of this phase being, lack of motivation and proper coordination between employees since there are too many employees and management gets difficult.
In the given case, as the corporation decreased it's inputs, the output fell less proportionately which means the firm was earlier operating in the phase of diseconomies of scale.
Answer:
open market operation
Explanation:
Open market operation is the mechanism of Fed to alter money supply. To increase the money supply, Fed will buy financial securities such as Treasury bills from large banks or security dealers so there is more money deposit in the account of those who buy securities from Fed. Thus, there is more money available for loan hold by the banks resulting in an increase in the money supply. Fed does otherwise to reduce the money supply.