Answer:
$10.28
Explanation:
<u>Step 1. Firstly we use the of the The dividend discount model (DDM)</u>
This calculation is: D1 = D0 x (1 + g)
D1 = $0.72 x (1 + 2.8%) = $0.74.
Where
Do = Dividend now
D1 = Dividend in year 1
g = growth
<u>Step 2 Next, using the Gordon Growth Model, </u>
Price per share is found to be D(1) / (r - g)
Price = $0.74 / ( 10% - 2.8%) = $10.28
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return
Last option is correct. The issuing corporation does not record any entry because it doesn't receive or give anything of value.
<h3>What are shares of stock?</h3>
The shares are regarded as the smallest unit of the stock that is owned by a company. There company sometimes sells its shares.
The company may have up to 10 million stock which it can sell to the intended buyers.
Read more on shares and stock here: brainly.com/question/25818989
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Answer:
$101,293
Explanation:
$100,000 face amount + $7,000 interest to maturity ($100,000 x 7%) = maturity value less the discount for the time remaining to maturity of $5,707 ($107,000 x 8% x 8/12) = $101,293
Answer:
$9,000
Explanation:
Total variable cost of manufacturing the components are as follows;
Direct materials $21,000
Direct labor 6,000
Variable overhead 3,000
————
Total $30,000
If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;
$39,000 - 30,000 = $9,000 (unavoidable fixed cost)
1) Mixed economies are a mix of Command (regulated by the government) and free (Market) economy - the answer is b)
2)Today most countries have a mixed economy, there are few (such as North Korea) which have a command economy, but none have a true free market (for example drugs are regulated)
3)Inflation means that one needs more money to buy the same goods - this is measured by a rising Consumer Prize index (answer d)
4) this indicator would be a steady, but low inflation - but inflation is bad for the economy but lack of inflation is not really stable
