Answer:
A. 16.71%
Explanation:
Use dividend discount model (DDM) to solve this question.
Formula for finding the required return of a stock is;
r = 
where P0 = Current price = $17.50
D1 = Next year's dividend = $3.45
r= required return = ?
g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)
r = 
As a percentage , it becomes 16.71%
Answer:
question
1. how much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, year 3?
2. In lieu of the original facts, assume that Ingrid purchase only a phone list with a useful life of 5 years for $16,500.
How much amortization expense on the phone list can Ingrid deduct in year 1, year 2 and year 3?
Explanation:
The explanation is shown in the file attached. Thank you i hope it helps
Answer:
Consumer Credit Legislation.
Explanation:
Consumer credit legislation demands that lenders provide potential borrowers with one or more measures of the cost of a loan.
λ=3
, mu = 5
<u>Explanation</u>:
λ=3
mu = 5
states
0 - no customers
1- 1 customre
2 - 2 customers
Set up Equations
Rate of entry = Rate of exit
5P1 =3P0
5P2 + 3P0 = 5P1 + 3P1
3P1 = 5P2
P0 + P1 + P2 = 1
solve the above
1a) = 0 into P0 plus 1 into P1 plus 2 into P2
b) λ ( 1 minus P2) by λ = 1 - P2
c) change the paramater mu = 5 into 2 and solve a) again
Answer: $41,960
Explanation:
The direct costs for the Cosmetics department will be those ones that are directly related to the sales of cosmetics and the running of the department and the cost of selling the units.
Direct Costs = Cosmetics Department sales commissions--Stardust Store + Cosmetics Department cost of sales--Stardust Store + Cosmetics Department manager's salary--Stardust Store
= 5,300 + 32,400 + 4,260
= $41,960
