Answer:
Po = Do<u>( 1 + g)</u>
Ke - g
$36 = $2.62<u>(1 + g)</u>
0.15 - g
$36(0.15 - g) = $2.62(1 + g)
$5.4 - 36g = $2.62 - 2.62g
$5.4 - $2.62 = -2.62g + 36g
$2.78 = 33.38g
<u>2.78</u> = g
33.38
g = 0.0833 = 8.33%
Explanation:
In this case, we will apply the formula for determining the current market price of a share (Po). The current market price, the current dividend paid (Do) and the discount rate (Ke) were provided in the question with the exception of growth rate (g). Therefore, we will make the growth rate the subject of the formula.
Answer:
11.40
32 days
Explanation:
Inventory turnover and days of sales of inventory are examples of activity ratios.
They are used to measure the efficiency of performing daily tasks
inventory turnover = Cost of goods sold/ average inventory
Average inventory = ($118,000 + $110,000) / 2 = $114,000
Inventory turnover = $1,300,000 / $114,000 = 11.40
days of sales of inventory = 365 / inventory turnover = 365 / 11.40 = 32 days
Answer:
an expensive mink coat
Explanation:
High psychological or perceived risk refers to the uncertainty that a consumer may have when he/she is purchasing a good or a product. Usually expensive goods carry a high perceived risk, e.g. house, boat, jewelry, car, etc.
In this case, an expensive mink coat carries high perceived risk because it is an expensive product and a customer considers the pros and cons of purchasing it.
Answer: Work plan
Explanation:
A work plan is a step by step procedure used by an individual/organization to enable them effectively achieve their objectives.
A business research project is an extensive study done on a business, to obtain ways of improving the business and increasing sales.
For a business research project to be effectively conducted, a work plan that outlines steps to be taken should be created and strictly followed.
One of them is the interest, or the simple interest
