Answer:
Policy 1
Price at end of year 4 = D5/(rs-g)
= 3 /(.12-.02)
= 3/.10
= $ 30 per share
Price Today =PVF12%,4* Price at end of year 4
= .63552 * 30
= $ 19.07 PER SHARE
Policy 2 :
Price at end of year 4 = D5/(rs-g)
= 2 /(.12-.06)
= 3/.06
= $ 50 per share
Price Today =PVF12%,4* Price at end of year 4
= .63552 * 50
= $ 31.78 PER SHARE
Policy 2 should be adopted since market price per share is higher under policy 2.
Answer:
Tt is highly productive in reducing the costs to produce a product.
it is highly productive in producing a highly valued commodity.
Explanation:
A product has derived demand If its demand is dependent on the demand for other products.
For example, there would be no need to demand for labour if no one demands for goods.
The derived demand for a good will increase if it reduces the price of the product and if it is important in the production of a good
Answer:
B. Because cash equivalents are less liquid than cash, they must be reported separately from the Cash account
Explanation:
The <em><u>combined amount of cash and cash equivalents</u></em> will be reported on the balance sheet as the first line item in the section with the heading current assets.
These cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase.
In other words, there is very little risk of collecting the full amount being reported.
A method of understanding what is done by any business is to look at it as a system for meeting the needs of a customer by changing lower-value inputs into higher value outputs by improving quality through packaging, blending, branding among other methods. This is a concept of adding value in business and identifying major types of business in a the market.