Answer:
Current dividend paid (Do) = $1.35
Growth rate (g) = 11% = 0.11
Cost of equity (ke) = 24% = 0.24
Po = Do<u>(1 + g)</u>
Ke - g
Po = $1.35<u>(1 + 0.11)</u>
0.24 - 0.11
Po = <u>$1.4985</u>
0.13
Po = $11.53
Explanation:
The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.
Answer:
The $500 is the opportunity cost.
Explanation:
The sunk cost can be defined as a cost that has already been incurred. Such as cost can no longer be recovered. A sunk cost is considered to be irrelevant and is excluded from decision making.
If an individual decided to take an accounting course and paid the tuition fee of $500 and gets a job offer later. If he/she decides to take up the job the tuition fee paid will be the sunk cost which cannot be recovered anymore.
Answer:
Even when competitive firms are unable to calculate marginal revenue product directly, <u>competition in the labor market</u> will push wage rates toward the marginal revenue product of labor.
Explanation:
The labor market is made up of employers seeking for labor and employees offering their labor services. The law of supply and demand also applies to this market, when more employers are seeking employees, the price (= salary) will increase.
For example, if many companies are making a profit and they need more labor, the salaries will rise because the demand is rising.
Also the suppliers, the potential employees, compete against each other for the best possible jobs.
Answer:
B) Pay bills when they are due.
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
Generally, it's recommended that loans or bills are paid on a timely basis or as at when due in order to obtain a good credit score.
Hence, a way to establish a good credit record (score) is to pay bills when they are due.
