Answer:
* The stock price in five years if the P/E ratio remained unchanged: $33.64
* The price be if the P/E ratio increased to 22 in five years: $37.77.
Explanation:
As the dividend has been growing at 7.25% each year in the next five years, earnings per share in the next five years should grow at the same rate, and earnings per share in year five will be: 1.21 x (1+7.25%)^5 = $1.717.
* The stock price in five years if the P/E ratio remained unchanged will be equal to:
Earning per share in the next five years x Current P/E ratio = 1.717 x 19.59 = $33.64
* The price be if the P/E ratio increased to 22 in five years will be equal to:
Earning per share in the next five years x New P/E ratio = 1.717 x 22 = $37.77.
For a small business, a good way to prevent or detect fraud is<u> B. Owner involvement</u> in the business.
<h3>What is a small business?</h3>
A small business can be defined as a privately owned corporation, partnership, or sole proprietorship with fewer employees and less annual revenue than a large business.
Five types of small businesses have been identified as follows:
- Sole proprietorship
- Partnership
- Corporation
- S Corporation
- Limited liability company.
Given the employment and revenue profiles of small businesses, they may not afford to detect or prevent fraud by the segregation of duties as required by internal controls.
Hiring CPA Auditors and trusted employees only cannot help small businesses prevent or detect fraud.
Thus, the best way for a small business to prevent or detect fraud is by the involvement of the owner in the business.
Learn more about small businesses and internal controls at brainly.com/question/14473430
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Answer:
time limitations in limited marginal utility; limited income and wealth
Explanation:
Demand curves intersect the quantity axis due to time limitations in limited marginal utility, which explains the second law of demand – the lower the price, the higher the quantity demanded. While it intersects the price axis due to limited income and wealth, which also explains the second law of demand – the higher the price, the lower the quantity demanded.
The marginal utility of a consumer is limited, because, the more of the goods consumed, the amount of satisfaction derived decreases. Hence, the demand curve intersects the quantity axis, indicating the point when the consumer derives no more satisfaction from the consumption of that good.
On the other hand, as a result of limited income of the consumer, it would come to a point when the consumer will not be able to purchase any quantity of the goods as the price increases. The point at which the demand curve intersects the price axis, indicates he point where the consumer income cannot purchase any quantity of the goods.