Answer:
The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Explanation:
The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:
P2021 = D2022 / (r - g) ............................ (1)
Where,
P2021 = current stock price in 2021 = ?
D2020 = Annual dividends per share paid in 2020 = $3.00
D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06
D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212
r = required return = 10%. or 0.10
g = growth rate = 2% = 0.02
Substituting the values into equation (2), we have:
P2021 = $3.1212 / (0.10 - 0.02)
P2021 = $3.1212 / 0.08
P2021 = $39.02
Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Answer:
Dental Drilling Company's Income Statement for the year shows Net Income of $56,000.
Please note that:
- figures in bracket represent negative values
- solution in excel format is attached for your reference
Explanation:
Dental Drilling Company
Income Statement
Sales $489,000
Less: Cost of Goods Sold $(156,000)
Gross Profit $333,000
Less: Expenses
Selling and Administrative Expenses $(112,000)
Depreciation Expenses $(73,000)
Earnings before Interest and Tax $148,000
Less: Interest Expense $(45,000)
Earnings Before Tax $103,000
Taxes $(47,000)
Net Income $56,000
1) B
A market economy answers the three basic economic questions.
2) A
3) D
Zero unemployment and zero inflation is not good fpr the economy because inflation is important to keep the economy running.economis t call this sustainable inflation. when there is an inflation , you know that the price will rise in the future. your money is more valuable now since the price is lower then the future thus you sped noe instead of saving. this keeps the economy running.
If unmeployment were zero that would mean no new business could start, no existing business could expand and no one is entering the labor force. shortage of labor like this would increase the wage as the existing business have to compete for the labors and if wage sgoes up then prices goes up as well: inflation.
