A Corporation produces a good that is very mature in their product life cycles. The Corporation is expected to pay a dividend in year 1 of $3.00, a dividend in year 2 of $2.00, and a dividend in year 3 of $1.00. After year 3, dividends are expected to decline at the rate of 2% per year. An appropriate required return for the stock is 8%. How much is one share of Ace’s stock worth today?

Answers

Answer 1

The value of the share price at the end of year 3 is then discounted to its present value to calculate the present value of one share of Ace’s stock. Therefore, the value of one share of Ace’s stock worth today is $16.14.

Given,

The expected dividend in year 1 = $3.00

The expected dividend in year 2 = $2.00

The expected dividend in year 3 = $1.00

The dividends are expected to decline at the rate of 2% per year.

Required return on stock = 8%

The calculation of the present value of the share price of Ace's stock can be done using the formula of Present value of perpetuity which is,

PV = D / r, where D is the annual dividend paid by the stock and r is the required return rate of the stock.

Therefore,

Using the above formula, the calculation of the share price is as follows:

The expected dividend in year 4 = $1.00 (after 2% decline)

The present value of the share price of Ace’s stock at the end of year 3 can be calculated using the formula of Present value of growing perpetuity, which is,

PV = D / (r - g), where D is the annual dividend paid by the stock, r is the required return rate of the stock, and g is the rate of the dividend growth rate.

After year 3, dividends are expected to decline at the rate of 2% per year.

Therefore,

Using the above formula, the calculation of the present value of the share price of Ace's stock at the end of year 3 is as follows:

Hence, the value of one share of Ace’s stock worth today is $16.14.

The share price of Ace Corporation can be calculated using the two formulas that are mentioned above. The present value of the perpetuity formula is used to calculate the present value of the year 3 dividend, and the present value of the growing perpetuity formula is used to calculate the value of the share price at the end of year 3.

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Related Questions

I want to become doctor and I'm from nepal..which may be the best country for me to study

Answers

Answer:

the best would always be the USA in doctoring.

it has the best colleges etc.

Explanation:

Whatever u just need to try

The hybrid work model is on the rise. Discuss the benefits, challenges, risks, and impact of managing a hybrid workforce.

Answers

The hybrid work model, which combines remote work and in-person work, has gained significant popularity in recent times. It offers both advantages and challenges for organizations.

Let's discuss the benefits, challenges, risks, and impact of managing a hybrid workforce:

Benefits of a Hybrid Workforce:

Increased flexibility: Hybrid work allows employees to have a better work-life balance, as they have the option to work remotely and save commuting time.

Expanded talent pool: Organizations can tap into a broader talent pool by hiring remote employees from different locations, regardless of geographical constraints.

Cost savings: Both employers and employees can benefit from reduced expenses on office space, utilities, and commuting costs.

Challenges of Managing a Hybrid Workforce:

Communication and collaboration: Ensuring effective communication and collaboration among remote and in-person team members can be challenging. It requires the use of appropriate tools and strategies to bridge the gap.

Maintaining company culture: With employees working in different locations, it can be difficult to foster a cohesive company culture and maintain a sense of belonging.

Workload distribution: Managers need to ensure equitable distribution of work and avoid overburdening remote or in-person employees.

Risks and Impact of Managing a Hybrid Workforce:

Cybersecurity risks: Remote work introduces additional cybersecurity risks, such as data breaches or unauthorized access to company information. Organizations must implement strong security measures to mitigate these risks.

Inequality and inequity: Hybrid work models can potentially create inequalities among employees, leading to feelings of exclusion or unfair treatment. Organizations need to ensure fairness and equal opportunities for all employees.

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A new business is likely to need what bank service(s)? *

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Answer:

Checking Account tell me if i'm wrong

Explanation:

european countries have very strict laws concerning transborder data flows and privacy.
true
false

Answers

True. European countries have very strict laws concerning transborder data flows and privacy. This is primarily due to the implementation of the General Data Protection Regulation (GDPR), which aims to protect the personal data and privacy of individuals within the European Union (EU) and European Economic Area (EEA). The GDPR regulates the processing and transfer of personal data both within and outside the EU and EEA.

Present day business is progressively borderless. Information can now be sent to the other side of the world with the same ease as it is to the other side of the street thanks to digital communication technologies. Organizations can now globalize and regions can specialize as a result of this seamlessness. It has provided numerous opportunities for efficiency and innovation.

Victorian organizations controlled by the Security and Information Insurance Act 2014 (Vic) are progressively making the most of these potential open doors. The Victorian community can also benefit from improved services and a more cost-effective government in areas where agencies do so. However, Victorians anticipate that their personal information will be safeguarded wherever it is sent.

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Your new health insurance has a $4000 deductible. What does that mean?

Answers

What the other Person said because yes

A machine at a manufacturing company is programmed to fill shampoo bottles such that the amount of shampoo in each bottle is normally distributed with mean 0.60 liter and standard deviation 0.04 liter. let the random variable a represent the amount of shampoo, in liters, that is inserted into a bottle by the filling machine.

Answers

The probability that a randomly selected bottle of shampoo will be underfilled is 0.0062.

What is the meaning of Probability?

The area of mathematics known as probability deals with numerical representations of the likelihood that an event will occur or that a statement is true. An event's probability is a number between 0 as well as 1, where, roughly speaking, 0 denotes the event's impossibility and 1 denotes certainty.

Simply put, the probability is the likelihood that something will occur. When we don't know how an event will turn out, we can discuss the likelihood or likelihood of several outcomes. Statistics is the study of events that follow a probability distribution.

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. existing firms managers generally consider how many options in location planning? (a) one. (b) two. (c) three. (d) four.

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In location planning, existing firms' managers generally consider four options. So, the correct answer is (d) four.

While expanding and relocating are the two main options often discussed, there could be variations or sub-options within each. For example, expansion can involve options like building an additional facility, leasing additional space, or acquiring an existing facility. Relocation might entail choosing among multiple potential new locations or considering different types of facilities to move into.

Considering these additional possibilities, it is reasonable to conclude that existing firms' managers generally consider at least four options in location planning. Therefore, in light of the clarification, the correct answer is (d) four.

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Imagine your class has been asked to organize a career fair for your school. Now that you know about all the career clusters, you want to be sure to include each one in the career fair,
Working in small groups, imagine your class has been asked to organize a career fair for your school. Now that you know
Brainstorm how you would begin to organize this career fair. What would you need to do? What information would you
need to have? What permissions would you need to secure? Where will this be held?
Describe your plan below in detail.

Answers

Answer: Organizing a career fair requires knowledge of a variety of career clusters. Here are certain ideas you can use while organizing a career fair:-

After dividing the class into smaller groups assign each group a particular career path on which they can prepare a presentation.Prepare an itinerary for the presentations and assign each group a particular time slot.These itineraries can be distributed as pamphlets to the target audience.Each group can make an effort to invite certain professionals or experts from the field for the occasion.Permission from the School Council and higher authorities might be required for the use of school grounds and auditoriums.Each group must have a leader for the coordination of the activities.The leaders must work together as a team and keep each other updated about the progress of their individual groups.

Design 1: Flat Solar Panels
A field of flat solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87million initially with first-year operating costs at $2million, growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 8% each year thereafter.
Design 2: Mechanized Solar Panels
A field of mechanized solar panels rotates from sideto side so that they are always positioned parallel to the suns rays, maximizing the production of electricity. This design will yield 3.1 MW of power andwill cost $101 million initially with first-year operating costs at $2.3 million, growing $300,000 annually. It will produce electricity worth $8.8 million the first year and will increase 8% each year thereafter.
Design 3: Solar Collector Field
This design uses a field of mirrors to focus the suns rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal fired plant operates. This systemwill yield 3.3 MW of power and will cost $91 million initially with first-year operating costs at $3 million, growing $350,000 annually. It will produce electricity worth $9.7 million the first year and will increase 8% each year thereafter.

Answers

The following is a description of a typical day in the life of a MARRIOR. 1st Design The initial cost is $87 million. Yearly earnings: $6.9 million 8% annual income growth rate .

Yearly operational costs: $2 million, increasing at a rate of $250,000 per year. $6.9 million - $2 million - ($87 million / 25) annual cash flow - ($2,000,000 - $250,000) = $2.54,000,000 $2.54 million * (1 - 1/(1+10%)25) / 10% = $19.63 million PW of cash flow Design 2 The initial cost is $101 million. Yearly earnings: $8.8 million 8% annual income growth rate Yearly operational costs: $2.3 million, increasing by $300,000 each year. Yearly cash flow = $4.22 million = $8.8 million - $2.3 million - ($101 million / 25) - ($2.3 million - $300,000) Cash flow profit: $4.22 million * (1 - 1/(1+10%)25) / 10% = $32.66 million Design 3: Original cost: $91 million\sAnnual $9.7 million in earnings 8% annual income growth rate Yearly running costs: $3 million, increasing at a rate of $350,000 per  year. Yearly cash flow = $5.13 million = $9.7 million - $3 million - ($91 million / 25) - ($3 million - $350,000) Cash flow profit: $5.13 million * (1 - 1/(1+10%)25) / 10% = $39.59 million Design 3 has the highest current worth based on the PW analysis and would be the recommended design. Design 2 is the second best alternative, with the lowest present value.

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8300 dollars is placed in an account with an annual interest rate of 6. 5%. How much will be in the account after 14 years, to the nearest cent?.

Answers

The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.

The interest is the amount that is paid by the party at the annual rate of interest for a given period on the principal amount.

Computation for Amount after 14 years

The interest (I) added to the amount is given as:

\(I=\dfrac{P\;\times\;R\;\times\;T}{100}\)

The given principal amount, \(P=8300\;\\)

The rate of interest is, \(R=6.5\;\%\)

The time for the interest is, \(T=14\;\rm years\)

Substituting the values for the interest,

\(I=\dfrac{8300\;\times\;6.5\;\times\;14}{100}\\ I=7553\; \\)

The amount of interest added to the base amount after 14 years is, $7553.

The total amount in the account after 14 years is:

\(\rm Total\;amount=Principal\;amount\;+\;Interest\\\\Total\;amount=8300\;+\;7553\;\$ \\\\Total amount=15,853\;\\)

The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.

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what two elements are combined on the bcg matrix to produce its four unique product categories?

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The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic management tool that combines two elements to produce its four unique product categories.

These elements are market growth rate and relative market share. Market growth rate refers to the industry's growth potential and attractiveness. High growth rates indicate expanding markets, while low growth rates signify mature or stagnant markets. Relative market share, on the other hand, represents a company's competitive position within its industry, comparing its market share to that of its largest competitor.

These two elements are plotted on the BCG Matrix, forming a 2x2 grid with four quadrants representing distinct product categories: Stars, Cash Cows, Question Marks, and Dogs. Stars are high-growth, high-market-share products, Cash Cows have low growth but high market share, Question Marks exhibit high growth but low market share, and Dogs possess low growth and low market share. The BCG Matrix helps companies allocate resources and make strategic decisions based on their product portfolios.

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Classify the following statements regarding the evolution of terrestrial planets as true or false. True False Answer Bank originally were spheres of partially molten rock evolved from protoplanet to planetesimal to planet evolved from planetesimal to protoplanet to planet grew through collisions of solid objects developed dense iron cores rocky cores captured hydrogen-rich atmospheres formed by accretion of gases

Answers

In the given question, the statements regarding the evolution of terrestrial planets are classified into true and false. The following statements are classified as true and false:

True: The following statement is true:
- Developed dense iron cores
False: The following statements are false:
- Originally were spheres of partially molten rock
- Evolved from protoplanet to planetesimal to planet
- Evolved from planetesimal to protoplanet to planet
- Grew through collisions of solid objects
- Rocky cores captured hydrogen-rich atmospheres
- Formed by the accretion of gases
Terrestrial planets, also known as rocky planets, are defined as planets with a hard surface made up of rock, similar to the Earth. The terrestrial planets in our solar system are Mercury, Venus, Earth, and Mars.The following are the explanations of the given statements:
Originally were spheres of partially molten rock - False: Terrestrial planets were not originally spheres of partially molten rock, as they were formed by accretion, where solid particles collide and stick together, forming a larger body.
Evolved from protoplanet to planetesimal to planet - False: Terrestrial planets did not evolve from protoplanet to planetesimal to planet, but from the accretion of particles to form larger objects.
Evolved from planetesimal to protoplanet to planet - False: Terrestrial planets did not evolve from planetesimal to protoplanet to planet, but from the accretion of particles to form larger objects.
Grew through collisions of solid objects - False: Terrestrial planets did not grow through the collisions of solid objects, but through the process of accretion.
Developed dense iron cores - True: Terrestrial planets developed dense iron cores due to differentiation. The denser materials sink to the center of the planet, and the less dense materials float towards the surface.
Rocky cores captured hydrogen-rich atmospheres - False: Terrestrial planets do not have hydrogen-rich atmospheres, as they have a relatively low escape velocity that prevents them from retaining the gas.
Formed by accretion of gases - False: Terrestrial planets did not form by the accretion of gases, but through the process of accretion, where solid particles collide and stick together to form larger objects.

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What percentage of your gross salary does the consumer financial protection bureau.

Answers

Answer:

16% of total income

Hope it helps!

Answer:

16% of total income in month

which term denotes the response of a cost to the change in business activity

Answers

Explanation:

hhhjjhhhhghh leer jejeje gg ir sorry le eh la l

The terms is used to denote the response of a cost to the change in business activity is Cost behavior.

Cost behavior is used as a tool to show or indicate how a cost will alter or chang in total when there is a change in some activity.

There are three types of cost behavior. Cost Behavior Analysis is simply known as the study of how specific cost respond to changes in the level of business activity.

Conclusively, its knowledge will helps management plan operations and decide between alternative courses of action.

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You have learned about a noncash expense in a previous lesson, what was it? HINT: it relates to the company's use of its equipment

Answers

Answer:

Non cash expenses are the charges incurred by a company that educes the earnings and not the cash flows of a company.

Explanation:

A non-cash charge is defined as the accounting expenses or the write down expenses which does not involve a cash payment. The depletion, depreciation, stock-based compensation, amortization and the asset impairments are the common non cash charges which reduces the earnings but not the cash flows.

Non-cash expenses relates to he use of a company's equipment and tools which is used to run the company and which encounters depreciation and a degradation in its value or cost. Thus they are considered as the non cash expenses of a company.

Super Carpeting Inc. just paid a dividend (D0) of $1.92, and its dividend is expected to grow at a constant rate (g) of 2.80% per year.

If the required return (rs) on Super’s stock is 7.00%, then the intrinsic, or theoretical market, value of Super’s shares is per share.

a) $28.20

b) $27.43

c) $46.90

d) $48.91

Which of the following statements is true about the constant growth model?

The constant growth model implies that dividends remain constant from now to a certain terminal year.

The constant growth model implies that dividend growth remains constant from now to infinity.

Answers

The intrinsic value of Super Carpeting Inc.'s shares, based on the constant growth model, is $27.43 per share. Regarding the constant growth model, the true statement is that it implies that dividend growth remains constant from now to infinity.

To calculate the intrinsic value of Super Carpeting Inc.'s shares using the constant growth model, we can use the formula for the present value of a growing perpetuity:

\(P0= DO\frac{(1+g)}{(rs-g)}\)

Where:

P0 is the intrinsic value of the shares,

D0 is the current dividend per share ($1.92),

g is the constant growth rate (2.80% or 0.028),

and rs is the required return on the stock (7.00% or 0.07).

Plugging in the values into the formula, we have:

\(P0= 1.92\frac{(1+0.028)}{(0.07-0.028)}\)

≈ $27.43

Therefore, the intrinsic value of Super Carpeting Inc.'s shares is approximately $27.43 per share.

As for the statement about the constant growth model, the true statement is that it implies that dividend growth remains constant from now to infinity. In the constant growth model, it is assumed that the dividend growth rate remains constant indefinitely into the future.

This assumption allows for the calculation of the intrinsic value of the stock based on expected future dividends and the required return on the stock.

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Why are carpenters considered generalists?
O They are able to work independently.
O They supervise other workers on the operations team.
O They need an associate's degree for licensure.
O They are versatile and perform a variety of tasks.

Answers

Answer:

I feel like it's the last one but I could be wrong plz let me know

Explanation:

Answer:

They are versatile and perform a variety of tasks.

Explanation:

Select a single stock issue, then perform each of the ratio valuations, covered in the lesson. Compare the information and make a recommendation on the value of the stock, and whether it is a good investment. Your submission must list the name of the stock, the data. The information was obtained, the source from which the information was drawn, and a list of each of the ratio models, showing the results. Also, prepare a narrative of at least two paragraphs that analyzes your findings and indicates your recommendations.

Select a single stock issue, then perform each of the ratio valuations, covered in the lesson. Compare

Answers

We should note that stock valuation helps to predict the future price or potential market prices for the investors to time their sales or purchase of investments. Its values the intrinsic value of the stock that shows the profitability of the business and its future market value.

What is the stock valuation of Apple Inc?

In this context, let's assume we're analyzing Apple Inc. (AAPL), a technology company that designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players.

One key ratio valuations that investors might use to assess the value of AAPL is Price-to-earnings ratio (P/E ratio). This ratio compares the current stock price to the company's earnings per share (EPS). A high P/E ratio suggests that investors are willing to pay a premium for the stock based on its earnings potential.

To calculate the P/E ratio for AAPL, we would divide the current stock price by the company's EPS. As of 2022, AAPL had a P/E ratio of around 28, which is slightly higher than the industry average of around 24.

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What is less liquid, Cash or Stocks and why?

Answers

Cash is considered to be highly liquid because it's already in its most liquid form and doesn't need to be converted, while money you have in stocks is slightly less liquid because there are more steps involved in converting it to cash.

Henly Company enters into a contract to transfer a product to Propel Inc. On July 31, 2019. It is agreed that Propel will pay the full price of $10,000 in advance on April 15, 2019. Henly delivers the product on July 31, 2019. The cost of the product is $7,500. Requirement: What journal entries are required in 2019?

Answers

Answer and Explanation:

The journal entries are shown below:

1. No journal entry should be recorded for entered into a contract

2. On April 15

Cash Dr $10,000

      To Unearned sales revenue $10,000

(Being advance is recorded)

3. On July 31

Unearned Sales Revenue $10,000

         To Sales Revenue        $10,000

(Being the unearned sales revenue is recorded)

Cost of Goods Sold   $7,500

         Inventory              $7,500

(Being the cost of a product is recorded)

A football player on a 2 million dollar contract who refuses to show up to training camp because another similar football player has a contract for more money is an example of​ ________.

Answers

Answer:

Equity Theory.

Explanation:

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P.S, Brainliest if correct! Thanks!

silverville in 2008, exports were $200, gdp was $2000, government purchases were $300, imports were $130, and investment was $400. what was sevierville's consumption in 2008?

Answers

Sevierville's consumption in 2008 was $1,530.

What was the total expenditure by Sevierville in 2008?

Sevierville's consumption in 2008 can be calculated using the formula:

Consumption = GDP - Government Purchases + Imports - Exports + Investment

Substituting the given values:

Consumption = $2000 - $300 + $130 - $200 + $400

Consumption = $1,530

Therefore, Sevierville's consumption in 2008 was $1,530.

Consumption represents the total expenditure by individuals, households, and businesses on goods and services within an economy. It is an essential component of a country's GDP calculation, reflecting the overall demand for goods and services. In the case of Sevierville in 2008, consumption was determined by subtracting government purchases, exports, imports, and investment from the GDP. These figures provide insights into the economic activity and spending patterns within the city during that year.

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Siltronic produces silica from sand and gravel at four different mines; however, the sand and gravel extracted at each mine are different in their silica content. Mine 1 produces golden sand and gravel , which has a 70% silica content; mine 2 produces white ore, which has a 60% silica content; mine 3 produces gray ore, which has a 50% silica content; and mine 4 produces brown ore, which has only a 30% silica content. Siltronic has three customers that produce computer chips—Intel, AMD, and Apple. Intel needs 400 tons of pure (100%) silica, AMD requires 250 tons of pure silica, and Apple requires 290 tons. It costs $37 to extract and process 1 ton of golden sand and gravel at mine 1, $46 to produce 1 ton of white sand and gravel at mine 2, $50 per ton of gray sand and gravel at mine 3, and $42 per ton of brown sand and gravel at mine 4. Siltronic can extract 350 tons of sand and gravel at mine 1, 530 tons at mine 2, 610 tons at mine 3, and 490 tons at mine 4. The company wants to know how much sand and gravel to produce at each mine in order to minimize cost and meet its customers’ demand for pure (100%) silica. Formulate a linear programming model for this problem. (Hint: The decision variables will have two indices, such as x11, x12, etc. and there will be some equality constraints.)
a) Solve the linear programming model by using the computer.
b) Do any of the mines have slack capacity? If yes, which one(s)?
c) If Siltronic could increase production capacity at any one of its mines, which should it be? Why?
d) If Siltronic decided to increase capacity at the mine identified in (b), how much could it increase capacity before the optimal solution point (i.e., the optimal set of variables) would change?
e) If Siltronic determined that it could increase production capacity at mine 1 from 350 tons to 500 tons, at an increase in production costs to $43 per ton, should it do so?

Answers

A higher shadow price indicates a higher potential reduction in the total cost if the production capacity is increased.

a) To formulate the linear programming model, let's define the decision variables and constraints:

Decision Variables:

Let xij represent the tons of sand and gravel produced at mine i, where i = 1, 2, 3, 4, and j represents the type of ore.

Objective Function:

Minimize the total cost:

Minimize Z = 37x11 + 46x12 + 50x13 + 42x14 + 46x21 + 46x22 + 50x23 + 42x24 + 50x31 + 50x32 + 50x33 + 42x34

Subject to:

- The silica content constraint for each customer:

x11 + x12 + x13 + x14 = 400 (Intel)

x21 + x22 + x23 + x24 = 250 (AMD)

x31 + x32 + x33 + x34 = 290 (Apple)

- The sand and gravel availability constraint for each mine:

x11 + x21 + x31 ≤ 350 (Mine 1)

x12 + x22 + x32 ≤ 530 (Mine 2)

x13 + x23 + x33 ≤ 610 (Mine 3)

x14 + x24 + x34 ≤ 490 (Mine 4)

- Non-negativity constraint:

xij ≥ 0 for all i and j

b) To determine if any mines have slack capacity, we need to compare the production capacity (tons available) with the production used in the optimal solution.

The optimal solution will provide values for xij. By comparing the values of xij with the production capacity constraints, we can identify any slack capacity.

c) To determine which mine to increase production capacity, we need to evaluate the shadow prices (dual values) associated with the production capacity constraints. The mine with the highest positive shadow price indicates the potential benefit of increasing its capacity. A higher shadow price indicates a higher potential reduction in the total cost if the production capacity is increased.

d) To determine how much capacity can be increased before the optimal solution changes, you can perform sensitivity analysis or shadow price analysis. By gradually increasing the production capacity for the identified mine and observing the change in the shadow prices, you can determine the threshold at which the optimal solution changes.

e) To evaluate if increasing production capacity at mine 1 from 350 tons to 500 tons at a cost of $43 per ton is beneficial, you can modify the linear programming model with the new capacity and cost values. Then, solve the modified model and compare the total cost with the previous optimal solution. If the total cost decreases or remains the same, it would be beneficial to increase production capacity at mine 1.

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a company decided to price its product with the penetration strategy. what advantage does the company potentially create by selecting this type of pricing strategy?

Answers

With penetration strategy, the advantage the company potentially create is  Due to the goodwill developed among inventors and early adopters, it can build demand through word-of-mouth advertising.

What is meant by Penetration strategy?

The idea of a penetration strategy is to work aggressively to significantly increase one's share of total sales in a market. A business may often make things or purchase goods at a reduced cost as a result of the increasing sales volume, which allows it to raise its profit margin.

The promotions for introductory low prices for select fresh items that you frequently notice when you enter a supermarket are the ideal instances of penetration pricing. In order to boost demand for the organic goods they sell, Costco and Kroger use penetration pricing.

A market penetration strategy is essentially a method of introducing a new product into an established market (where existing or similar products already exist) (from your company or organization).

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Why do we record Direct deposits into the CPJ

Answers

Explanation:

Because those payments are done for creditors, repayment of loans and other expenses

An economist estimated that the price elasticity of demand for new cars to be 0.87 if the price of cars declines by 40%. One would expect the quantity of new cars to:______

Answers

Answer:

% change in quantity =34.8%

Explanation:

Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.  

Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic  

PED is computed as follows:  

PED = % change in quantity /% change in Price  

PED = 0.87

% change in Price =  40%

% change in Quantity =?

0.87 = y/40%/

Cross mulitiplying, we have

y = 0.87 × 40 = 34.8

Dividing both sides by 0.87

y =  34.8

% change in quantity = 34.8

% change in quantity =34.8

When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in:

Answers

When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in: strategic trade-offs.

What are strategic trade-offs?

This is a term that is used in the business word to refer to the sacrifices that a firm would make in order to be able to deliver on its goals.

Trade offs could be the service levels that the firm is not able to achieve.

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Best Bagel Bakers, Inc. has a current stock price of $29.44. The dividend next year will be $2.00. The required return is 14.0%. What is the future dividend growth rate?

Answers

Best Bagel Bakers, Inc. has a current stock price of $29.44. The dividend next year will be $2.00. The required return is 14.0%. To calculate the future dividend growth rate, we will apply the Gordon Growth Model.

What is Gordon Growth Model?Gordon Growth Model is a financial model that determines the intrinsic value of a stock using the anticipated dividends, the dividend growth rate, and the required rate of return. The model assumes that the dividend grows at a constant rate indefinitely. The formula is given as follows:Where:g = the expected dividend growth rateD1 = the expected dividend one year from nowr = the required rate of returnP0 = the current stock price

We are given the current stock price, dividend next year, and required return. Therefore, we can use the formula to calculate the future dividend growth rate.P0 = D1 / (r - g)rearranging the equation:g = (D1/P0) + r= ($2.00/$29.44) + 0.14= 0.1491 or 14.91%Therefore, the future dividend growth rate is approximately 14.91%.

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Advocates of floating rates pointed out that Group of answer choices removal of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency values would restore fiscal control. imposing of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency would restore monetary control to the consumer. removing of the obligation to peg currency values would restore fiscal control.

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Answer:

removal of the obligation to peg currency values would restore monetary control to central banks.

Explanation:

The Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to depository financial institutions when they're running out of money and as well as regulate their activities.

Generally, monetary policy affects the money supply in an economy, which then creates an impact on interest rates and the inflation rate.

Hence, advocates of floating rates pointed out that removal of the obligation to peg currency (setting specific fixed exchange rate) values would restore monetary control to central banks.

Richard has recently finished college and is about to prepare for his exam to become a certified public accountant. He wants to talk to other accountants to learn how best to prepare for this exam. Which professional organization would be most helpful for him to join?

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Answer:

The accountant federation

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