Answer:
The answer is D.
Explanation:
The price of a stock is also known as price of equity. This is the price the equity of a company is presently worth. The price the potential investors will be able to purchase it. One of the ways of calculating price of a stock is the Dividend Discount Model which can be calculated by:
Ke = (D1÷Po) - g
Ke is the Cost of equity(i.e the required rate of return for investors)
D1 is the next year dividend payments
Po is the price of the stock
g is the expected dividend growth rate
To get Po, we can rewrite the formula as:
Po = D1÷Ke - g÷Ke
We can see now that the expected future dividends will be discounted at the ''Ke'' which is the investors'required rate of return
Answer:
thank you for points I will return them to you in 2 days
Answer:
$2,000
Explanation:
Depreciation: The depreciation is a non-cash expense that shows a decrements in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement.
The computation of the depreciation expense under the straight line method is shown below:
= (Original cost of milling machine - salvage value) ÷ (expected useful life)
= ($15,000 - $2,000) ÷ (7 years)
= ($14,000) ÷ (7 years)
= $2,000
In this method, the depreciation is same for all the remaining useful life
Answer:
$ 1252
Explanation:
Since we have been given the annual rate, but we have been asked for monthly payments, the first thing we should do is calculate the monthly rate.
R = (1+ APY) ^ 1/12 -1
Where:
R: monthly rate
APY: annual rate
R= (1+0.057)^1/12-1
R= 0.0046
Then, having monthly rate data, we can calculate the monthly payments. For that, we will use the formula for the present value of an ordinary annuity.
PMT= (P*R) / (1-(1+R)^(-n))
Where:
PMT: Monthly payments
R: monthly rate
P: Present value
n: Period
PMT= (220,000 * 0.0046) / (1-(1.0046)^-360))
PMT= 1,252
Answer:
The correct answer would be option A, The amount of arable land affects the agricultural output of a nation.
Explanation:
Arable land is a land which is capable of producing crops. A land where soil can be ploughed and crops can be grown, is know as the Arable Land. When crops are grown in a country, they help the country to increase their agricultural output. So arable land affects the agricultural output of the country or nation. For example, if a land is arable, farmers grow crops like potatoes, carrots, tomatoes, cucumbers, etc, and help the country in boosting the agricultural area. This would contribute towards the increase in the gross domestic product of the country.
