Answer:
The current price of Hubbard's common stock is <u>$25.50</u>.
Explanation:
This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price = ?
D1 = Next dividend = D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53
r = required return = 8%, or 0.08
g = growth rate = 2%, or 0.02
Substituting the values into equation (1), we have:
P = $1.53 / (0.08 - 0.02) = $25.50
Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.
Answer:
The month of April
Explanation:
Susan Zupan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Zupan's law firm prepares monthly financial statements, the law firm should recognize the revenue in April because according to revenue recognition principle, revenue should be recognized in the accounting period in which services are performed, and Susan zupan performed the work in April so therefore the firm should recognize the revenue in April.
Answer:
D, are probably not engaged in intense competitive rivalry
Explanation:
A competitive analysis framework or framework of competitive analysis can be said to be an analysis model that is used to examine a competitor market structure. This in turn helps you to properly prepare or structure your market analysis.
There are about 5 competitive analysis frameworks. They include SWOT(strength Weakness Opportunity Threats), Porter's five forces, Strategic group analysis, growth share matrix, perceptual mapping.
In the case of Rapid-Built Homes and ModMod, they are not exactly involved in intense competitive rivalry because while Rapid-Built homes is a developed by real estate speculators, ModMod is a side business for two architecture professors. This means that selling of housing units by Rapid-Builts is the source of main income for the company while for ModMod, is it not the main source of income for the professors.
Cheers
Answer:D
Explanation: A perfect competition is characterised by identical product and no barriers to entry. Products are perfect subsistuites.
The HHI index is used to measure the market power and therefore concentration of firms in the market.
An index less than 1000 indicates the firm isn't concentrated
An index between 1000-1800 indicates moderate concentraruon
An index of over 1800 indicates high concentration
An oligopoly is when there are a few numbers of firms in a market that are interdependent.
Answer:
A. relatively inelastic comma as compared to the short minus run demand
Explanation:
Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.
In the short run, an increase in gasoline prices may be unwelcome by consumers who may stop buying gasoline, meaning that in the short run the demand for gasoline tends to be elastic. However, over time consumers have realized that the price hike has not been temporary and that the new price is indeed a reality. Since gasoline is a commodity of great need for car owners, the tendency is for consumers to adapt to the new price in the long run, making demand more inelastic.
