If the price of a good increases by 20% and the quantity demanded changes by 15%, then the price elasticity of demand is equal to: 0.75.
Price elasticity of call for is a dimension of the trade inside the consumption of a product when it comes to a trade in its fee. Expressed mathematically, it is: rate Elasticity of call for = percent exchange in amount Demanded ÷ percentage trade in price.
Price elasticity of demand is the ratio of the proportion alternate in amount demanded of a product to the percentage change in price.
A good's price elasticity of call for is a measure of the way sensitive the quantity demanded is to its fee. when the rate rises, quantity demanded falls for almost any top, but it falls extra for some than for others.
Learn more about price elasticity here : https://brainly.com/question/5078326
#SPJ4
the describes and organizes an integrated set of guidance, programs, and processes to enable the national preparedness goal.
The national preparedness system describes and organizes the set of guidance, programs, and processes to enable the national preparedness goal.
The national preparedness system is a set of systematic approaches based on proven preparedness activities. These systematic approaches are intended to tackle the situation during natural hazards and manmade threats such as catastrophic disasters, terrorism, pandemics, and cyber attacks.
The national preparedness system analyses the risk and determines the capabilities required to address these risks, establishing and sustaining these capabilities, plans to sustain these capabilities, monitoring the response of the capabilities during the time of risk, and improving them further.
This system describes the country's approach toward national preparedness.
Learn more about national preparedness system here https://brainly.com/question/17095240
#SPJ4
if you deposit $50 per month in a bank account at 10 percent annual interest (compounded monthly), how much will you have in your account at the end of the 12th year?
At the end of the 12th year, the account will have $13821.50.
Considering the values provided in the question,
Monthly deposit (D) = $50
Monthly period (n) = 12year × 12months = 144months
Monthly interest rate (r) = Annual interest rate / 12 months in a year
= 10% / 12
= 0.8333%
Future value of monthly deposit = D × [tex](1+r)^{n}[/tex] - 1 / r
= $50 × [tex](1 + 0.8333)^{144}[/tex] - 1 / 0.8333
= $13821.50
Therefore, $13821.50 will be there in the account at the end of the 12th year.
Interest is the extra sum of money that a borrower pays to a lender or investment in addition to repaying the amount borrowed. For instance, a borrower may agree to borrow $20,000 and agree to pay an additional $200 in interest.
Learn more about Interest at,
https://brainly.com/question/27584159
#SPJ4
although price discrimination is profitable, most firms charge the same price to everyone. identify two reasons why a firm would decide not to price discriminate.
The most profitable price discrimination is first-degree price discrimination because it captures all of the consumer surplus and each consumer purchases the good at the maximum price they are willing to pay.
Why is price discrimination successful?Companies profit from price discrimination because it encourages consumers to buy larger quantities of their products or motivates otherwise uninterested consumer groups to buy products or services.
Price discrimination is a sales strategy in which the seller charges different rates for the same item or service depending on what the seller believes the customer will agree to. The seller charges each customer the highest price they will pay in pure price discrimination.
Learn more about Price Discrimination here:
https://brainly.com/question/14969650
#SPJ1
how did the war industries board (wib) contribute to the expanding regulatory powers held by the federal government during world war i?
When tackling the production of war materials, the WIB balanced price limits against war profits.
What is war profiteer?Any individual or organization that profits from war or from providing weapons and other items to parties engaged in hostilities is considered a war profiteer. The phrase often connotes something really bad. In times of peace, general profiteering, or making an excessive or unjustifiable profit, also takes place.At least three business opportunities arise from a war economy: logistics and reconstruction, private security services, and the provision of weaponry."War is the most lucrative business on earth," said Kenneth Eade.Any individual or organization that profits from war or from providing weapons and other items to parties engaged in hostilities is considered a war profiteer.To learn more about war profiteer refer to:
https://brainly.com/question/11551823
#SPJ4
the chapter describes free cash flows for common equity shareholders. if the firm borrows cash by issuing debt, how does that transaction affect free cash flows for common equity shareholders in that period? if the firm uses cash to repay debt, how does that transaction affect free cash flows for common equity shareholders in that period?
In that period, borrowing increases cash flows available for equity shareholders but reduces the available cash flows in future periods when the debt must be repaid.
Cash flow is the movement of money, real or virtual. Strictly speaking, cash flows are specific payments from one central bank account to another. The term "cash flow"
Cash flow is a measure of the amount of money that goes in and out of a business over a period of time. If you have positive cash flow, more money is flowing into your business than it is leaving. The opposite is true if the cash flow is negative.Learn more about cash flows here: https://brainly.com/question/735261
#SPJ4
when the iphone x was released, it was priced at $999, but two years later, the price decreased to $600. this is an example of what type of pricing strategy?
When the iphone x was released, it was priced at $999, but two years later, the price decreased to $600. this is an example of price skimming type of pricing strategy.
The Oxford Dictionary defines method as: “A course of action designed to acquire a protracted-time period or normal aim” “The art of making plans and directing overall navy operations and actions in a battle or conflict”
Strategy as we've identified refers back to the long-time period intention or roadmap for an organization, and how it plans to reach them. Or, the route the agency will take in the direction of its desires. Conversely, tactics seek advice from the unique set of actions taken to reach the organizational dreams, or strategy.
Learn more about strategy here:https://brainly.com/question/24769299
#SPJ4
bob, mary, and alex are co-owners of a building. alex files a lawsuit to have the property sold and proceeds divided among the three owners. what type of court action is alex filing
The type of court action that Alex is filing is suit of foreclosure.
What is a foreclosure?Through the legal process of foreclosure, a lender may attempt to recover the remaining balance of a loan from a borrower who has stopped paying the lender. This involves forcing the sale of the item pledged as collateral for the loan. Formally, a mortgage lender or other lienholder terminates an equity right of redemption of a mortgage borrower by court order or by operation of law (after following a specific statutory procedure). Typically, a borrower who mortgages or pledges an asset like a house to finance the loan gives the lender a security interest in the asset. Courts of equity may grant the borrower the equitable right of redemption if the borrower repays the debt if the lender tries to repossess the property after the borrower defaults.
To learn more about foreclosure, visit:
https://brainly.com/question/8575725
#SPJ4
jason's employer pays year-end bonuses each year on december 31. jason, a cash-basis taxpayer, would prefer not to pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus). so, he leaves town on december 31, 2020, and has his daughter, julie, pick up his check on january 2, 2021. who reports the income and when?
Jason reports the income in 2016.jason's employer pays year-end bonuses each year on December 31. jason, a cash-basis taxpayer, would prefer not to pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus).
HMRC can also additionally ask you to supply proof of the way you've got labored out PAYE and National Insurance contributions. It's essential which you hold your facts both in paper shape and on a computer. In both cases, those facts have to be made to be had to HMRC on request.
All examples on this manual display tax calculated the usage of the tax tables, now no longer the Scottish fee or Welsh fee tables – you have to use the Scottish fee tables for a worker with a prefix S code and the Welsh fee tables for a worker with a prefix C code.
Learn more about cash-basis here:
https://brainly.com/question/4555544
#SPJ4
Economists that do not believe in market failures or that believe the government is not the appropriate entity to intervene when market failures occur, are _____.
Economists that do not believe in market failures or that believe the government is not the appropriate entity to intervene when market failures occur, are Public Choice economists.
Who are economist?An economist is an expert who studies the relationship between a society's resources and its output or production. Economists study societies from small local communities to entire nations and even global economies.
The Economist's expert opinions and research are used to shape a wide range of policies, such as interest rates, tax laws, employment programs, international trade agreements, and corporate strategies. questions, conduct research and collect data, analyse data using mathematical models, statistical techniques and software; present research results in reports, tables and graphs; interpret and forecast market trends, advise companies, governments and individuals on financial matters; recommends solutions to financial problems.
To learn more about economist, refer;
https://brainly.com/question/14299791
#SPJ4
Which repayment option does not accrue interest while your required payments are paused?.
Answer: i may be wrong but i think its Subsidized Loans
Explanation:
Answer: I think The answer is Subsidized loans I hope this is helpful
Explanation:
Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need. Eligibility is determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it’s paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay. See http://www.sfa.ufl.edu/debt-management/“Debt Management & Student Loans” for more important information on the capitalization of interest.
: regulators attempt to reduce the riskiness of banks' asset portfolios by group of answer choices encouraging banks to hold risky assets such as common stocks. requiring collateral for all loans. limiting the amount of loans in particular categories or to individual borrowers. establishing a minimum interest rate floor that banks can earn on certain assets.
The regulators attempt to reduce the riskiness of banks' asset portfolios by limit the number of loans to specific categories or individual borrowers.
What the function of limit the number of loans?The limit is the total loan amount borrowed, which decreases over the remaining term of the contract. Additional repayments will be reflected in your balance. The legal credit limit is the maximum amount a financial institution can lend to one of her borrowers. Credit limits are set by the United States. A code established and monitored by the FDIC and OCC. If the borrower is one of hers, the legal credit limit cannot exceed his 15% of the bank's capital and surplus.
Learn more about limit number of loans: https://brainly.com/question/14342059
#SPJ4
rent and drive is a car rental company. it prices its rentals based on operations-oriented pricing. in this scenario, rent and drive:
rent and drive is an automobile rental company. It bases its rental prices on operations-oriented pricing. Rent and drive pricing vary in this scenario based on automobile supply and demand.
Automobile was a Motor Trend Group publication in the United States. Automobile was formed in 1986 by a group of former Car and Driver personnel led by David E. Davis and supported by Rupert Murdoch, with the slogan No Boring Cars. Automobile defined itself as a lifestyle magazine rather than an automotive publication, an editorial concept Davis built on during his term as editor of Car and Driver, while it was a sister publication to Motor Trend. Furthermore, Automobile set aside a significant amount of each issue to feature automobiles that are no longer in production but are nonetheless of interest to collectors or automotive history in general.
Learn more about demand here
https://brainly.com/question/14456267
#SPJ4
which of the following is the first step of strategic management process? group of answer choices vision and mission statements create and choose strategies strategic analysis measure and evaluate performance develop objectives
The first step of the strategic management process is to measure and evaluate the performance.
Strategic management sets a course for the corporation and its personnel. In contrast to once-and-done strategic plans, powerful strategic control continuously plans, monitors, and checks an employer's sports, resulting in more operational performance, market proportion, and profitability.
The maximum critical element of strategic management revolves around the concept of figuring out and knowledge of unique corporation desires. Placing quick time period goals is an excellent way to start, as they act as an immediate blueprint for reaching long-term targets.
Strategic control is essential because it allows companies to rationalize alternate and actualize change and talk about the need to exchange higher to its personnel. Eventually, strategic control facilitates bringing order and area to the sports of the firm in its each internal processes and external activities.
Learn more about Strategic management here https://brainly.com/question/24845876
#SPJ4
crane company receives $384,000 when it issues a $384,000, 10%, mortgage note payable to finance the construction of a building at december 31. 2025. the terms provide for annual installment pavments of $64,000 on december 31. prepare the journal entries to record the mortgage loan and the first two installment payments.
The journal entries to record the mortgage loan and the first two installment payments for Crane Company are as follows:
Journal Entries:December 31, 2025, Debit Cash $384,000
Credit 10% Mortgage Note Payable $384,000
December 31, 2026, Debit Interest Expense $38,400
Debit 10% Mortgage Note Payable $25,600
Credit Cash $64,000
December 31, 2027, Debit Interest Expense $34,560
Debit 10% Mortgage Note Payable $29,440
Credit Cash $64,000
How are the mortgage interest expenses determined?The mortgage interest expense for each year is computed as the outstanding mortgage balance multiplied by the interest rate.
The interest expense for the first installment payment is $38,400 ($384,000 x 10%). The remaining portion of the installment payment reduces the mortgage balance to $345,600 ($384,000 - $38,400).
The interest expense recorded during the second installment payment is $34,560 ($345,600 x 10%). The installment portion reducing the mortgage balance is $29,440.
Transaction Analysis:December 31, 2025, Cash $384,000 10% Mortgage Note Payable $384,000
December 31, 2026, Interest Expense $38,400 10% Mortgage Note Payable $25,600 Cash $64,000
December 31, 2027, Interest Expense $34,560 10% Mortgage Note Payable $29,440 Cash $64,000
Learn more about recording mortgage interest expenses at https://brainly.com/question/16245211
#SPJ1
mark is creating a disaster recovery plan based on directives from his company's executive management team. his company's business is an e-commerce website that sells children's apparel with 85 percent of its revenue received during the holiday season.
An govt team is responsible for offering strategic and operational executive management within an company. This crew operates as an interdependent, collaborative decision-making frame – strategically executing the agency's undertaking and imaginative and prescient.
“govt management” in experience of HR consultancy approach the best organizational leadership level of any Organisation. the ones managers are regularly appointed via the supervisory board and are answerable for operational every day business.
The defining function of the executive crew is a hard and fast of those who collectively take on the position of offering strategic, operational, and institutional leadership for the business enterprise. each member is chargeable for his or her organizational unit, in addition to for the leadership of the corporation as an entire.
Learn more about executive management here:
https://brainly.com/question/24196901
#SPJ4
if net domestic product (ndp) is $50 less than gross domestic product (gdp), we know that? net investment equals $50 inventories decreased over the year depreciation equals $50 inventories increased over the year.
if net domestic product (NDP) is $50 less than gross domestic product (GDP), the year depreciation equals $50. Thus, option (c) is correct.
What is product?The thing being sold is called a “product.” A product and service market foundation. Items are divided into two categories: industrial products and consumer products. The product is to fulfill the needs of the consumer.
The domestic savings product (NDP) equals the gross national product (GDP) minus devaluation on a government's capital goods. As a result, the only appropriate answer to the case will be a), because NDP is $50 less than GDP. The domestic savings product (NDP) equals the gross national product (GDP) minus devaluation of a government's fixed assets.
Therefore, option (c) is correct.
Learn more about on product, here:
https://brainly.com/question/22852400
#SPJ1
Which term describes a private network typically used by organizations for the sharing of company news, policies, documents and other information?.
An intranet describes a private network typically used by organizations for the sharing of company news, policies, documents and other information.
An organization is a collection of individuals who work collectively, like a community association, a charity, a union, or a company. you may use the phrase company to refer to institution or commercial enterprise, or to the act of forming or establishing some thing.
An enterprise is an official institution of humans, for instance a political birthday celebration, a enterprise, a charity, or a membership. maximum of those specialised faculties are supplied by using voluntary organizations. ... a document by means of the worldwide Labour employer. Synonyms: organization, enterprise, party, body greater Synonyms of business enterprise.
Learn more about organizations here:https://brainly.com/question/19334871
#SPJ4
a camera has a listed price of $701.95 before tax. if the sales tax rate is 7.5%, find the total cost of the camera with sales tax included.
The total cost of the camera with the sales tax included is $754.59
Retail sales of goods and services are subject to a sales tax, which in theory should be charged on all final consumption with limited exceptions. A base broadening strategy that includes include food could keep rates lower. Many governments exempt products like groceries. Business-to-business transactions should not be subject to a sales tax because they can lead to tax pyramiding if they are.
The list price of the camera = $701.95
Sales tax = 7.5%
Total cost = List price + Sale tax on the list price
= 701.95 + 7.5% of 701.95
= 701.95 + 0.075*701.95
= 701.95 + 52.6462
= $754.59
Learn more about taxes:
https://brainly.com/question/16423331
#SPJ4
an investor with a required rate of return of 12.5% is evaluating a stock that currently pays a $3.75 dividend per share, has a dividend growth rate of 6%, and is selling in the market for $60.00 per share. what would you recommend?
The stock's actual worth is $61.15 while it is actually selling for $60, hence it is underpriced in the market, Buy it meets the buyer's return requirements and is underpriced.
Required rate of return = 12.5%
Current dividend = $3.75
Growth rate = 6%
Current share price = $60
The purchase price that a willing buyer and seller agree upon is known as fair value. The fair value of a stock is established by the market where it is traded.
Utilizing Gordon's growth model, determine the stock's fair price as follows.
Stock's fair price = D0 × (1 + g)/Ke - g
= 3.75 × (1.06)/1.025 - 0.06
= 3.0975/0.065
= $61.15
To learn more about fair prices
https://brainly.com/question/162685
#SPJ4
nancy wong has decided to move from her apartment into a house she is purchasing. she wants to enjoy the advantages of home ownership, such as
Nancy Wong has decided to move from her apartment into a house she is purchasing. She wants to enjoy the advantages of home ownership, such as an opportunity to increase wealth and equity.
There are various other benefits that come with ownership, such as:
Eventually being able to obtain a home equity loan to benefit from a tax breakMortgage interest will likely be deductible from taxesMore control over house remodeling and décorBeing a homeowner among other members of your community gives you a sense of pride and belonging. Possibility of tax deductions You may be able to deduct the interest on your loan, insurance premiums, property taxes, and even improvements to your home's energy efficiency.
Learn more about homeownership here:
https://brainly.com/question/25734244
#SPJ4
a strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a(n):
A strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a (A) push strategy.
What is a push strategy?A push promotional technique is a form of marketing in which businesses bring their goods directly to customers. With the help of trade exhibits and point-of-purchase displays, this technique aims to put the product in front of consumers directly.A push strategy is a tactic used by a product maker to persuade the wholesaler, distributor, or retailer to sell their goods.Direct sales of travel or insurance are two examples of this. Consumer promotions and advertising are the most likely promotional methods with this kind of plan.Therefore, a strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a (A) push strategy.
Know more about push strategy here:
https://brainly.com/question/23179645
#SPJ4
Complete question:
A strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a(n):
A) push strategy.
B) pull strategy.
C) distribution strategy.
D) alliance strategy.
E) marketing strategy.
extreme is a game app for smartphones that features interactive extreme sports. the graphics used in the app are protected by
In the video game Edge, extreme sports are interactive. Copyright regulations safeguard the game's graphics.
A copyright is a type of intellectual property right that is granted by a government and gives the owner, with a few exceptions, the sole right to use an original expressive work. Original works of fiction, nonfiction, extreme sports music, architectural designs, fine paintings, and sculptures are a few examples of works that are protected by copyright. The Copyright Act of 1976 sets forth the rules for copyright law in the United States.
The creation must be an original expression of thought or idea that extreme sports hasn't been made public already. To put it simply, the work must be copyright distinctly unique and distinct from other works. You cannot, for instance, take a Harry Potter book's title page, rename it Harold Zotter, and then assert copyright over the content. The expression of an idea, not the idea itself, cannot be protected by copyright. The concept of superstring theory, for instance, cannot be protected by a copyright, but an essay describing it may.
Learn more about copyright here
https://brainly.com/question/16774161
#SPJ4
The complete question is
edge is a video game featuring interactive extreme sports. The graphics used in the game are protected by
A. copyright law
B. patent law
C. trademark law
D. none of the choices
the inventory costing method that matches each unit of inventory with its actual cost is referred to as the
The specific identification method is the inventory costing strategy that compares each unit of stock to its actual cost.
What particular identifying technique does inventory costing use?Inventory valuation, specifically keeping track of each individual item in stock and allocating expenses per item rather than as a group, is the specific identification approach. A company is functional and usable when it can identify, mark, and keep track of each item or unit in its inventory.
To track individual inventory goods, the unique identification approach is employed. When individual objects can be readily identified, such as when they have a serial number, stamped receipt date, bar code, or RFID tag, this method is appropriate.
Learn more about specific identification method: https://brainly.com/question/15319587
#SPJ4
In regression analysis, the error term ε is a random variable with a mean or expected value of?.
The answer is zero.The margin of error within a statistical model is represented by an error term.
What is the error term in regression analysis?The margin of error within a statistical model is represented by an error term; it refers to the sum of the deviations within the regression line, which explains the difference between the theoretical value of the model and the actual observed results. Furthermore, in a general linear model equation, as a random variable, the error term,, should not be correlated with any of the independent variables, xi, or the dependent variable, y. Formal proof - Cross Validated, regression - expected value of error term equals zero. A residual is another term for error in regression.A residual is the difference between the actual value associated with a data point and the value projected to be associated with a particular data point based on the results of a specific analysis's regression model.
To learn more about regression analysis refer
https://brainly.com/question/7781679
#SPJ4
when a corporation completes a 2-for-1 stock split, a.only the par value per share is decreased. b.only the ownership interest of current stockholders is decreased. c.only the market price per share of the stock is decreased. d.both market price per share and par value per share are decreased
A corporation completes a 2-for-1 stock split, then both market price per share and par value per share are decreased.
While the overall ledger account balances do now no longer alternate after an inventory cut up, there's one alternate that ought to be noted: the par price in keeping with percentage decreases with an inventory cut up. If the inventory undergoes a two-for-one cut up earlier than the stocks are returned, it absolutely manner that the wide variety of stocks withinside the marketplace will double at the side of the wide variety of stocks that want to be returned. When an organization splits its stocks, the price of the stocks additionally splits.
Learn more about corporation here:
https://brainly.com/question/13551671
#SPJ4
the form of the balance sheet in which assets, liabilities, and owner's equity are presented in a downward sequence is called the report form
The report form is the type of balance sheet where assets, liabilities, and owner's equity are listed in decreasing order is true.
A balance sheet that displays asset, debt, and equity accounts vertically is known as a report form balance sheet. The account format and the report format are the two standard formats used for balance sheets in financial reporting.
The asset accounts are on the left side of the account format, and the liability and equity accounts are on the right. All of the accounts are displayed vertically in the report format. Although the report form is the more common option, both balance sheet formats are acceptable.
Learn more about Balance sheet here:
https://brainly.com/question/27334743
#SPJ4
scenario: a country produces only one good. it produced 5,000 units of the good during year 1 and 6,000 units of the good in year 2. the price of each unit of the good in year 1 was $280 and it was $320 in year 2. suppose year 1 is taken as the base year for the calculation of gdp. refer to the scenario above. the real gdp of the country in year 2 was?
A correct answer is option (A) $1,920,000 thus the real GDP of the country in year 2 was $1, 920,000.
Gross domestic product (GDP) is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is the GDP of a country using current-year prices.
Nominal GDP = current year price × quantity
=(6000 × 320)
= $1,920,000
The complete question is:
A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP. The nominal GDP of the country for Year 2 was:______.
A) $1, 920,000
B) $2, 510,000
C) $174,000
D) $180,000
To learn more about GDP please click on the given link: https://brainly.com/question/28375883
#SPJ4
What type of decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project?.
A Go/ No Go decision determines whether a project is worth all the effort and investment or should be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project.
What is a Go/ No Go decision?A project's value and whether it should be continued or shelved depend on the "Go/No Go" decision. The decision-making standard is established by the organization and is specific to its needs. The outcome of the process determines whether or not a corporation will continue the process.The outcome of a multi-dimensional feasibility evaluation of the project is frequently the basis for a "Go/No Go" decision, which determines whether a project is worthwhile of all the effort and expenditure or should be stopped.Therefore, a Go/ No Go decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project.
Know more about decisions here:
https://brainly.com/question/27004710
#SPJ4
countess corporation is expected to pay an annual dividend of $5.11 on its common stock in one year. the current stock price is $78.27 per share. the company announced that it will increase its dividend by 3.55 percent annually. what is the company's cost of equity? multiple choice 9.52% 9.80% 10.31% 10.08% 10.69%
The company's cost of equity is 9.52%.
Calculating, using the formula
Cost of Equity = (Next Year's Dividends per Share/ Current Market Value of Stocks) + Growth Rate of Dividends
As per question,
[tex]\frac{5.11}{78.27 } + 0.0355 X 100[/tex] = 9.52%
The cost of equity is the return required by a company to assess whether an investment satisfies capital return requirements. Businesses usually use it as a ceiling for the required rate of return. To assess the cost of equity, divide the annual dividends per share by the stock price at the time, and then add the dividend growth rate. The capital asset pricing model, in contrast, considers the beta of the investment along with the anticipated market return and rate of return. The cost of equity is significant when analysts want to value stocks. The cost of equity might affect the value of the equity investment. When someone invests in a company or project, they can desire to
To learn more about cost of equity: https://brainly.com/question/13086476
#SPJ4
a stock currently sells for $30 per share and pays $1.00 per year in dividends. what is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments?
An investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments would be $33.93.
Valuation of stock: 0.12 = ( 37 - P + 1 )/P
= 1.12P = 38. So, P = $33.93
An equity investment is a cash put into a business through the purchase of its stock on the stock exchange. On a stock exchange, these shares are typically traded.
Private equity investments, preferred shares, retained earnings, and equity mutual funds are a few examples of equity investments. A variety of advantages, including risk diversification, straightforward transfer, profitability, and simple monitoring, come with an equity investment.
To learn more about Equity investments visit: https://brainly.com/question/28191214
#SPJ4
