Answer:
a) Price of stock = $42
b) Price of stock = $60
Explanation:
<em>The price of a share can be calculated using the dividend valuation model </em>
<em>According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
</em>
<em>If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
</em>
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
<em>a) Where discount rate is 15%</em>
Price of stock = 4× (1.05)/(0.15-0.05) = 42
Price of stock = $42
<em>b) Where discount rate is 12%</em>
Price of stock =4× (1.05)/(0.12-0.05)= 60
Price of stock = $60
Answer:
The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.
Explanation:
The first transaction is a note recievable which is a credit instrument that requires the debtor to pay interest. The period for repayment bis usually above 30 days. Blair Automotive made the first customer sign a written promise to pay in full after six months with an annual interest rate of 3.5%.
The second transaction is an account recievable which are claims for payment that is raised by a business for delivery of products and services, it is payable within an agreed time frame. Accounts receivable does not attract interest payment. Blair Automotive sends the second customer a bill within the next two weeks, due within 30 days of receipt of the bill.
Answer:
A decrease in both the market equilibrium price and the market equilibrium quantity of autos sold.
Explanation:
A fall in the demand for automobiles would shift the demand curve to the left.
As a result of the leftward shift, both equilibrium price and quantity would fall.
I hope my answer helps you
Answer:
Facts of the case:
A client of a staffing company has hired the employees to conduct its business activities. The workers are hired, paid and offered with other benefits by the firm. The firm also supervises the employees and provides necessary inputs to accomplish the job. The client has right to direct the staffing firm workers to perform the task according to their needs. However this right is not frequently exercised by the client.
An employer has an accessibility to hire or procure the human asset in direct or indirect manner in the present case, it the indirect hiring of the employee through staffing firm.
When an employee work for a staffing company, he or she gets paid and provided with a right to complain about the client regarding its manner of possessing clients, unethical contractual salaries etc.
In the present scenario, it not clear whether the employee is hired on contractual basis. If the employees are hired for contractual basis, the staffing firm would be the employer of the workers in the case of terminating them. If the employees were hired for permanent position, then the employees were terminated by the client itself as the client would be the employer of workers.
Answer:
c. a graph of decision and their possible consequences
Explanation:
Decision tree -
It is a model in the form of a tree , which act as a supporting tool to get all the possible outcomes i.e. , utility , resource cost , outcomes , is referred to as decision tree.
Hence , from the given options of the question, the correct statement regarding decision tree is c. a graph of decision and their possible consequences .
