Answer:
4%
Explanation:
The Gordon constant growth dividend model =
Value = dividend / cost of capital - growth rate
Subsisting with the values given in the question gives :
25 = 2.5/0.14 - g
To solve for g,
1. multiply both sides by 0.14 - g
25(0.14 -g) = 2.5
2. divide both sides by 25
0.14 - g = 0.10
g = 0.04 = 4%
Answer:
The correct response will be "Paying a premium price
".
Explanation:
- Each consumption has the fundamental economic intention of obtaining products that have the highest possible and the limit requirements at the lowest competitive prices.
- And therefore, satisfied customers frequently ignore that instinct because some other manufacturer is still connected to something like the commodity.
Given:
Selling price = 6.99
Cost = 4
The dollar markup is computed by deducting the cost from the selling price.
6.99 - 4 = 2.99 is the dollar mark-up based on cost.
2.99/4 = 0.7475 x 100% = 74.75% is the percentage mark-up based on cost.
Answer:
Unlimited
Explanation:
GIven that:
You short-sell 200 shares of Tuckerton Trading Co
now selling for $50 per share.
If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the more loss you're going to accumulate.
From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.
∴
The maximum possible loss = 200 × 50( 1 - infinity share price)
= Unlimited loss
