Answer:
intrinsic value of SCI’s shares is $33.28 per share
Explanation:
given data
dividend (D₀) = $1.92 per share
constant rate (g) = 4.00% per year
required return (rs ) = 10.00%
to find out
intrinsic value of SCI’s shares
solution
we know that intrinsic value is here express as
intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1
put here value we get
intrinsic value = 
intrinsic value = 33.28
so intrinsic value of SCI’s shares is $33.28 per share
Answer:
$312,000
Explanation:
Given that,
August Sales = $300,000
July sales = $330,000
Customer amounts on account are collected 60% in the month of sale and 40% in the following month.
Cash Receipts during August:
= (August Sales × 60%) + (July Sales × 40%)
= ($300,000 × 60%) + ($330,000 × 40%)
= $180,000 + $132,000
= $312,000
Therefore, the cash is budgeted to be received during August is $312,000.
Answer:
3. the more resources a society uses to produce one good, the fewer resources it has available to produce another
Explanation:
The production possibilities frontier (PPF) is a curve that shows the trade-offs that a person, firm, or country has to incurr when producing two goods.
As economic agents have limited resources, they can only produce a limited amount of one good over the other.
If more resources are devoted to the production of one good, for example, butter, then, less resources are left for the production of the other good, for example, guns.
With each additional unit of butter produced, more resources are spent, which means that less resources are available to produce guns.
In other words, the opportunity cost of producing butter increases as more butter is made, causing the PPF to bow outward.
Answer:
The price of the stock six years from now will be $56.94
Explanation:
To calculate the price of a stock that pays a dividend which grows at a constant rate forever, we use the constant growth model of DDM. The current price of stock using the constant growth model is calculated as follows,
P0 = D1 / r - g
As, we don't know the D1, that is dividend expected for the next year, we will calculate it first,
45 = D1 / (0.12 - 0.04)
45 * (0.12-0.04) = D1
45 * (0.08) = D1
3.6 = D1
We use the D1 to calculate the price today. Thus, we will use D7 to calculate the price six years from now.
D7 = D1 * (1+g)^6
P6 = 3.6 * (1+0.04)^6 / (0.12 - 0.04)
P6 = $56.939 rounded off to $56.94
Answer and explanation:
The simplest form to identify a difference in the frequency of the customers who visited the sore is by recording the number of people coming into the shop is well established time frames during the morning, afternoon, and night. After performing the report for at least a couple of weeks, a comparison should be made among the opening days and time frames during a day to find out what days are the heaviest in clientele and during what time.
