To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
Answer:
The profit motive
Explanation:
Although the <em>profit motive</em> is essential and common among all businesses that exist, it is by nature anti-competitive, meaning it is not a trait used to create substantial competitive advantage. It is a notion that will certainly not attract customers. However, it is always present (and most customers know that), but the profit motive will never be communicated through mrketing activities etc.
Answer:
The correct answer is letter "B": cost-benefit assessment.
Explanation:
Cost-benefit assessment implies analyzing what the costs and benefits of engaging in business are. The approach aims to minimize losses and maximize benefits. It does not necessarily imply there are not going to be losses during the business cycle but could reduce them as much as possible.
According to liquidity preference theory, there is a rightward shift in the money supply curve when the federal reserve decides to raise the money supply.
Option A is the correct answer.
<h3>What is a federal reserve?</h3>
The federal reserve is the central banking authority in America which was established in the year 1913 under the Federal Reserve Act.
When the federal reserves increase the money supply then the money supply curve moves in the right direction and when the federal reserve decreases the money supply then the money supply moves toward the left. This shows a direct relationship between the federal reserve and the money supply curve.
Therefore, there is a rise in money supply by the Federal reserve causing the money supply curve to shift in the right direction.
Learn more about the rise in money supply in the related link:
brainly.com/question/26000265
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Answer:
D) Debit income summary 187000, credit revenues 187000
Explanation:
When dividend is declared, following journal entry is passed
Retained Earnings Dr.
To Dividend Payable
(Being declared dividend recorded)
When dividends are actually paid, the journal entry is
Dividend Payable A/C Dr.
To Cash A/C
(Being dividend paid recorded)
Income summary account is prepared as a temporary account while income statement represents permanent account.
Income summary shows net income balance i.e Revenue less expenses.
As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.
