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2 years ago

When a string of hurricanes hit Florida,

1 answer:

7 0

The story about the hurricanes and the demand and supply for plywood illustrate the law of supply and demand by showing that if supply and demand remain stable, prices will not change.

<h3>How are the law of supply and demand illustrated?</h3>

Both the laws of supply and demand explain that if supply changes by a higher margin than demand, prices will decrease. If the demand on the other hand, is more than supply, prices will increase.

In the above scenario, the supply of plywood changed by about the same rate as the demand. None of them change by more than the other, so prices remained stable.

Find out more on the law of supply and demand at brainly.com/question/1222851.

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A corporation is authorized to sell 1,000,000 shares of common stock. Today there are 500,000 shares outstanding, and the board

Juliette [100K]

Answer:

35,000 stocks

Explanation:

Dividends can be either distributed in cash or distributed as new stock. In this case the company decided to issue stock instead of cash payments. Since the company has 500,000 outstanding and the board declared a 7% dividend, then 35,000 stocks should be issued (= 500,000 x 7%).

Whether shareholders receive money or stocks, they still have to include the dividends as part of their gross income.

4 0

4 years ago

A teacher has decided to take her fifth grade class to a play. The manager of the theater agreed to discount the regular $35 pr

MArishka [77]

Answer:

40 students

Explanation:

The cost of the bus is $480

For x students, the cost of each ticket will be 35 - 0.30x

The total cost of the tickets for x students will be x(35 - 0.30x)

To find the number of students that will make the cost per student equal to $33, we solve for x:

480+ x(35 - 0.30x) =35

480+ x(35 - 0.30x) = 35x

480 + 35x - 0.30x² = 35x

480 = 0.30x²

1,600 = x²

40 = x

The cost per student will be $35 if the number of students is 40; it will be less than $35 if the number of students is greater than 40.

8 0

3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

4 years ago

To have an effective marketing exchange process, you must make sure it involves a customer, a provider, a product, and a:

k0ka [10]

1) lawyer

I hope this is right

5 0

4 years ago

When preparing the operating budgets for a manufacturing company, the manufacturing overhead budget ________. only includes vari

Stells [14]

When preparing the operating budgets for a manufacturing company, the manufacturing overhead budget includes costs that are projected by the cost accountant and the production manager. It contains the all manufacturing costs and expenses, except the direct materials (raw materials) and direct labor.

4 0

3 years ago