Answer:
The current share price is $71.05
Explanation:
P3 = D3(1 + g)/(R – g)
= D0[(1 + g1)^3](1 + g2)/(R – g)
= [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)
= $90.20
The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:
P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113
= 1.568 + 1.695 + 1.832 + 65.958
= $71.05
Therefore, The current share price is $71.05
Answer:
a. the law of supply.
Explanation:
This pay scale agrees with the law of supply, which states that the higher the price, the higher the supply. We will observe that the higher the pay scale the higher the number of hours worked per week.
Answer:
b. projects budget data for various levels of activity.
Explanation:
Flexible budget
It is the budget which flexes or adjust with the change in the activity or the volume .
It is the more sophisticated form of budget , and is a static budget .
i.e.
The budget does not change .
As the costs vary with the activity and volume .
<u>The flexible budget will have a variable rate pr unit activity .</u>
<u>the flexible budget is more useful during measuring the manager's efficiency .</u>
Answer:
Mercantilism
Explanation:
Mercantilism refers to the economic nationalism designed to create a wealthy and strong state. Adam Smith named the phrase "market system" to define the political science scheme that attempted to enhance the nation through disciplining imports and promoting exports.
Throughout the sixteenth century, the most crucial financial reason for mercantilism has been the replacement of the colonial-era major power centers by big, powerful nation-states. Thus, from the above we can conclude that the correct option is mercantilism.