Answer: The options are given below:
A. Short term.
B. Operating.
C. Long
D. Finance.
The correct option is D. Finance.
Explanation: A finance lease is the kind of lease in which a finance company is the legal owner of the asset throughout the duration of the lease, while the lessee has both operating control over the asset, and some share of the economic risks and returns from the change in the valuation of the underlying asset.
In a finance lease agreement, ownership of the property is transferred to the lessee at the end of the lease term.
Answer:
6) H0: μ≥ 7.4 versus H1: μ< 7.4
7) - 1.28
8) - 1.50
The demand for air travel between two cities doubles. The elasticity of the supply of air travel between these cities will <span>become more elastic, the longer the time since demand doubled</span>. Elasticity is the responsiveness between supply or demand when nothing changes but the price. In this situation, the demand for air travel between two citifies doubled, so, the traveling is elastic because even though the demand rose, so did the price, but the demand didn't start to drop.
Answer:
The current stock price should be at $60.15.
Explanation:
We have the dividend paid next year = 1.05 x 1.25 = $1.3125.
So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:
[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.
The present value of the dividend stream from year 8 to infinity ( growing perpetuity):
[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.
The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.
Thus, the answer is $60.15 per share.
