Answer:
$9.687
Explanation:
Given:
Year 3 dividend = $1.00
Year4&5 growth rate = 17%
Constant rate = 7%
Required return rate = 16%
Year 4 dividend wil be:
D4 = 1.00 * 1+growth rate
= 1.00 * (1+0.17)
= $1.17
Year 5 dividend=
D5 = $1.17 * (1+0.17)
= $1.3689
Value of stock after year 5 will be given as:
= $16.2747
For the current value of stock, we have:
Cv= Fd* Pv of discounting factor
Where Cv = current value of stock
Fd = future dividend
Pv = Present value of discounting factor
Therefore,
=$9.6871382455
≈ $9.687
The value of stock today =
$9.687
Answer:
The total contribution margin for the firm is: $209,095
Explanation:
The contribution margin is calculated by using following formula:
Contribution margin = Total sales – Total variable costs
In International Imports,
Total sales = $674,500
Total variable costs = cost of goods sold + total variable selling and administrative expense = $404,700 + $60,705 = $465,405
Contribution margin = $674,500 - $465,405 = $209,095
Answer:
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.
Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
Explanation:
Who pays the tax does NOT depend on who write the check to the government.
Who pays the check ultimately depend on the elasticity of supply and demand. This is because, suppliers have several ways of passing the taxes levied on them by the government to the consumers in form of increase in price of their products. But this also depend on the elasticity of the products, because if the prices are too high, some customers may decide to buy somewhere else or to go for a substitute.<span />
