Answer:
The correct answer is $55.5.
Explanation:
According to the scenario, the given data are as follows:
Stock Price = $50
Dividend = $2
Equity cost = 15%
So, we can calculate the Price of the stock after 1 year by using following formula:
Stock Price = ( Dividend + Stock price after 1 year) ÷ ( 1 + Equity cost)
By putting the value we get
$50 = ($2 + Stock price after 1 year) ÷ ( 1 + 0.15 )
Stock price after 1 year = [$50 × 1.15] - $2
= $55.5
Answer:
A conspiracy among firms to set prices for a product.
Explanation:
Price fixing can be defined as a process whereby companies make an agreement to sell a product at a particular price. It can also be described as an agreement between competitors on the lowest or highest amount a particular product will be sold in the market.
Price fixing controls the market price thereby preventing other new businesses from competing in the market. Price fixing is illegal, it leads to an increase in the amount of goods and services.
Based in the historical cost principle, the total cost of
the land would be the summation of all cost, either direct or indirect.
Therefore it would be:
Cost of Land = $90,000 cash + $5,000 commission + $7,000
demolishing
Cost of Land = $102,000
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Make sure the brand conveys what is <em>unique </em>about your company.
If you don't focus on the customer or make your product/brand unique you won't stand out in the marketplace and customers will not want to choose your product.
Answer:
Option B, lower interest rates and increase the equilibrium GDP.
Explanation:
Option B is correct because the increase in the money supply will reduce the interest rate and increase the real GDP or output on the country because the rise in the money supply will results in more money in the hand of people. Therefore, more investment and production will be done in the economy. Thus, a rise in the production of output in the economy will result in the rise of GDP
