Answer:
P₀ = $59.45
Explanation:
the numbers are missing so I looked for a similar question:
- expected EPS = $2.775
- retain 0% of earnings (years 1 - 2)
- retain 48% of earnings (years 3 - 4)
- then retain 23%
- expected return on new projects = 22.4%
- Re = 10.7%
growth rate = retention rate x return on new projects
g₁ = not given EPS₁ = $2.775
g₂ = 1 x 22.4% = 22.4% EPS₂ = $3.3966
g₃ = 1 x 22.4% = 22.4% EPS₃ = $4.1574
g₄ = 0.48 x 22.4% = 10.752% EPS₄ = $4.6044
g₅ = 0.48 x 22.4% = 10.752% EPS₅ = $5.0995
g₆ = 0.23 x 22.4% = 5.152% EPS₆ = $5.3622
dividend payout ratio expected dividend
year 1 = 0 $0
year 2 = 0 $0
year 3 = 0.52 $2.1618
year 4 = 0.52 $2.3943
year 5 = 0.77 $3.9266
year 6 = 0.77 $4.1289
since the growth rate became constant at year 6, we can find the terminal value for year 5:
terminal value year 5 = $4.1289 / (10.7 - 5.152%) = $74.4214
P₀ = $0/1.07 + $0/1.07² + $2.1618/1.07³ + $2.3943/1.07⁴ + $3.9266/1.07⁵ + $74.4214/1.07⁵ = $0 + $0 + $1.7647 + $1.8266 + $2.7996 + $53.0614 = $59.45
Answer:
d. money demand shifts left and decreases if money supply shifts left.
Explanation:
The money market can be defined as a component of the financial market wherein, financial instruments with low risk, high liquidity and short-term maturities (usually 365days or less) such as federal funds, treasury bills, bills of exchange, commercial paper, certificates of deposit, repurchase agreements, etc are traded between banks and other financial institutions.
When the money market is drawn with the value of money on the vertical axis, the price level increases if money demand shifts left and decreases if money supply shifts left.
Also, when the money market is drawn with the value of money on the vertical axis, the value of money decreases, as price level increases; causing quantity of money demanded to increase and to move rightward on the money demand curve.
However, there would be an increase in the demand of money, if the price level is above the equilibrium rate; thereby making the price level to fall when the money market is drawn with the value of money on the vertical axis.
Potential benefit of inflation will be the D More business profits.
During inflation, the average cost of the products that exist in the market would be increased.Because of this, the average net income of the businesses that produced it will also be increased.
It can be noted that when the addition of more features to an existing product overwhelm the customers, it is known as feature fatigue.
<h3>What is feature fatigue?</h3>
Feature fatigue simply means when consumers shy away from products that appear to be rich in features.
This occurs ehen a company continually adds more features to an existing product to try to appeal to more customers may end up overwhelming customers and create an unintended consequence.
Learn more about fatigue on:
brainly.com/question/948124
I don't really know of Bill Smith but I know Adam
Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .
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