Answer:
<u>Question 1:</u>
What would be the stock price in five years if the P/E ratio remained unchanged?
Answer: $161.30
<u>Question 2:</u>
What would the price be if the P/E ratio increased to 18 in five years?
Answer: $175.96
Explanation:
Question 1:
<u>What would be the stock price in five years if the P/E ratio remained unchanged?</u>
Solution:
PV = $6.07
I = 10%
PMT = 0
N = 5
CPT FV = PV×(1+1/Y)^N
CPT FV = $6.07 × (1+0.10)^5
CPT FV = $9.78
Stock price in five years = $9.78×16.5 = $161.30 (answer)
<u>Question 2:</u>
<u>What would the price be if the P/E ratio increased to 18 in five years?</u>
CPT FV = $9.78
Price = CPT FV × 18
Price = $9.78 × 18
Price = $175.96 (answer)
Answer:
e. None of these.
Explanation:
John's expenses on the trip;
Air fare = $3,200
Lodging = $900
Meals = $800
Entertainment = $600
Of all the expenses incurred by John, only the expense on entertainment is a non-deductible expense. A such,
Total deductible expense = $3,200 + $900 + $800
= $4,900
Hence, the right option is e. None of these.
Answer: $3500
Explanation:
Preferred stock:
Number of shares = 1000
Par value = $50
4.5% cumulative
Common stock:
Number of shares = 10000
Par value = $10
Total first-year cash dividend paid = $1000
The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Preferred Stock dividend = 1000 × 0.045 × 50 = $2250
Unpaid dividend from year 1 = $2250 - $1000 = $1250
Year 2 dividend = $2250
Total dividend due in year 2 = $(1250 + 2250) = $3500
I guess the correct answer is bringing together a group of talented and experienced managers to conceive, develop, and market products.
Apple Computer's "smart team" is an example of a firm that succeeded by bringing together a group of talented and experienced managers to conceive, develop, and market products.
Answer:
a) & 2) ; b) & 1) ; c) & 4) ; d) & 3)
Demand Curve ; Demand Schedule
Explanation:
a) A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices : 2) Demand Curve
b) The amount of a good that buyers are willing and able to purchase at a given price : 1) Quantity Demanded
c) The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good : 4) Law of Demand
d) A table showing the relationship between the price of a good and the amount that buyers are Willing and able to purchase at various prices : 3) Demand Schedule
- If Rina's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct<u> Demand Curve</u> using the data provided.
- If Rina's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that <u>Demand Schedule</u> would be more appropriate.