Answer:
The correct answer is $12.5.
Explanation:
According to the scenario, the computation of the given data are as follows:
Dividend = $1
Growth rate = 9%
Rate of return = 17%
So, we can calculate the current value of stock by using following formula:
Current value of stock = Dividend ÷ ( Rate of return - Growth rate )
By putting the value, we get
Current value = $1 ÷ ( 17% - 9%)
= $1 ÷ 0.08
= $12.5
Answer: D. Treasury stock method
Explanation: Treasury stock method is the technique adopted by companies used to calculate the number of shares that will be newly created from outstandings in the money warrant. The net increase gotten from this technique (treasury stock method) is added to determine the diluted EPS (earnings per share). The money gotten from this is reinvested through the repurchase of shares in the shares market.
Formula for treasury stock method is
Net increase= shares from treasury stock method –shares repurchased
Answer:
Talking to the wrong dude
Explanation:
Talking to the wrong dude cause dont pertain to you
Answer:
left as well as the contractionary monetary policy, then bring about the
increase of interest rate as well as reducing equilibrium quantity of money.
Explanation:
Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.
Answer:
utmost good faith
Explanation:
The utmost good faith refers to the principle in which both the parties are acted honestly i.e it disclosed all the information related to the insurance and does not misguide anything to gain a benefit in term of profit
Therefore in the given case, there is a contract made between the two parties where they trust each other and hope that they treated each one in a honest manner
So this situation represent the utmost good faith