Answer:
Dividend in year 2000 (Do) = $0.137
Dividend in year 2012 (D12) = $0.55
Required return (Ke) = 13.7% = 0.137
D12 = Do(1 + g)n
$0.55 = $0.137(1 + g)12
<u>$0.55</u> = (1 + g)12
$0.137
4.0146 = (1 + g)12
12√4.0146 - 1 = g
1.1228 - 1 = g
g = 0.1228 = 12.28%
Po = Do<u>(1 + g)
</u>
ke - g
Po = $0.55<u>(1 + 0.1228)
</u>
0.137 - 0.1228
Po = $0.55<u>(1.1228)
</u>
0.0142
Po = $43.49
Explanation:
In this case, we need to calculate the growth rate using the formula D12 = Do(1 + g)12. Then, we will calculate the current market price, which is a function of current dividend paid, subject to growth rate, divided by the excess of cost of equity over growth rate.
Answer:
Explanation: The marketing mix consists of a number of factors that a producer usually exploits in order to influence consumers to purchase his/her products and services.
The marketing mix consists of:
- Product
- Price
- Place
- Promotion.
The above are usually called the 4Ps of marketing.
Of the four factors of the marketing mix, the factor that will the easiest for Lee to change will be the price.
This is because, often times, the price of a product or service will be the major determinant in the success of said commodity, and this is due to the fact that customers will compare the product being offered with its price in order to judge whether the product is worthy of the value placed on it.
Therefore, in order for Lee to influence the potential customers to make purchases, the price of the software program will be the easiest to be reviewed, and it should be set to a level where potential customers will be influenced to exchange their money for the software program.
C) Increase interest rates in order to decrease the money supply
During high inflation, the Federal Reserve will increase rates so that it is harder to borrow money and people will not spend as much of what they already have. The goal of this is to slow down economic growth (which is tied to inflation) in the short term.
Answer:
b. the average number of days to collect receivables is 31.
Explanation:
The calculation of average number of days is shown below:-
Accounts receivable turnover = Net credit sales ÷ Average accounts receivable
$240,000 ÷ $20,000
= 12
Average number of days to collect receivable = Number of days in a year ÷ Accounts receivable turnover
= 365 ÷ 12
= 31 days
Therefore for computing the average number of days to collect receivable we simply divide accounts receivable turnover by number of days in a year.
