Answer:
P14 = $55.69545045394 rounded off to $55.70
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected in Year 1 or next year
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded off to $1.67
Now using the equation for Price as provided by the DDM model,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded off to $55.70
Answer:
The correct answer is A
Explanation:
The current liabilities is computed as:
Current Assets (CA) = Quick assets (QA)+ Inventory (I)
CA = QA + $49,000
Acid test ratio = Quick assets / Current Liabilities (CL)
2.8 = QA / CL
QA = 2.8 × CL
Current Ratio (CR) = CA / CL
3.5 = CA / CL
Putting CA = QA + Inventory
3.5 = ( QA + $49,000) / CL
Now, Putting QA = 2.8 × CL
So,
3.5 = [( 2.8 × CL ) + $49,000] / CL
3.5 = 2.8 CL / CL + $49,000 / CL
3.5 = 2.8 + ($49,000 / CL)
3.5 - 2.8 = $49,000 / CL
0.7 = $49,000 / CL
CL = $49,000 / 0.7
CL = $70,000
Answer:
79,000 tons
Explanation:
When you use the weighted average method for determining equivalent units, the total number of equivalent units = units completed and transferred out + equivalent units in ending inventory.
In this case, since the materials are added at the beginning of the production process, all the units are 100% complete regarding direct materials.
Answer:
Explanation:
A)
The regression equation is,
ln(Cell Phone Subscribers) = -820.894 + 0.411704 Year
or,
Percent of Cell Phone Subscribers = exp(--820.894 + 0.411704 Year)
For the year 2005,
Percent of Cell Phone Subscribers = exp(--820.894 + 0.411704 * 2005)
= 96.79%
B)
P-value for the significance of the slope is very low (0.000). Thus, the model is statistically significant and the prediction of the model is highly reliable.
Answer:
Option "D" is the correct answer to the following statement.
Explanation:
In this situation seller is a monopolist, he would charge the highest amount for his Goods or service, 40% of the total population will pay $2,000 for particular goods and services.
He is a monopolistic seller, so people will have to buy and Consume particular goods from him.
Profit For each beg should be highest if he sells his item at $2,000 each
Total Profit = Sales price - Cost
= $2,000 - $600
= $1,400
