<span>When estimating using money for a purchase, you should </span>estimate up to the nearest dollar or half dollar .
Answer:
The worth of stock today is $12.17.
Explanation:
A Multi-Period Dividend Discount Model should be used to determine the worth of stock today.
<u>Year-1</u> <u>Year-2</u> <u>Year-3</u> <u>Year-4</u>
Dividends - $.80 $1.10 $1.50
Discount Factor - .7763 .6840 .6026
Present Values - .6210 .7524 .9039
Perpetuity (1.50)*(1 + 4%) = $1.56
Terminal Value = 1.56 / (13.5% - 4%) = $16.4210
PV of Terminal Value = Terminal Value * Discount Factor
⇒ PV of Terminal Value = 16.4210 * (1.135)^(-4) = $9.8950.
Add the Present values of Dividends with the PV of Terminal Value to get the Stock Price of Today.
⇒Stock Price = .6210 + .7524 + .9039 + 9.8950 = $12.17.
Thanks!
Answer:
In kind benefits are goods and services provided for free or at greatly reduced prices
Explanation:
The benefits in kind are the advantages given to an employee or a customer such as credit cards, company cars, concert tickets and so on. Usually these benefits are called "perks" and are part of the compensation plan offered at each enterprise.
The benefits are also offered to clients, which will be awarded with a gift from the company when reaching certain number of purchases.
Development is the process of an economy’s increasing industrialization, standard of living, and economic wealth.
When there is a development in economics, they focus on improving the fiscal economic and social conditions in developing countries. Development does not happen over night or at a fast pace but eventually the areas they want to have developed become more economically sound to keep up with the economy's needs. There are 4 stages of economic development, they are expansion, peak, contraction and trough.
<span>Maximum prices in economics can be also known as Price Ceiling, where it is the legal maximum prices that producers can sell their good at. However, as this causes a market disequilibrium, ceteris paribus, there will exist a surplus of goods produced. This is due to the signalling and incentive effective on producers and consumers resulting in the increase of price (that has been set by the government).
Consumers would consume less of the product as it is more pricey than before, hence they are less willing and able to buy the product at the new price. Producers on the other hand sees more revenue to be earnt through higher prices and hence would devote their resources into producing that product. Hence the mismatch of supply and demand results in a surplus of products and would likely result in the government buying all the surplus out of interest for producers.</span>
