Answer:
set above the equilibruim price
Answer: $4.70
Explanation:
The Gordon Growth Model allows for the calculation of stock value using the predicted growth rate of dividends and the discount rate.
The formula is;
Value of stock = Next Dividend / ( Discount rate - growth rate)
Next Dividend = Current dividend * growth rate
= 1.2 * ( 1 - 0.1)
= $1.08
Value of Stock = 1.08 / ( 13% - (-10%))
= 1.08 / ( 13% + 10%)
= 1.08 / 23%
= $4.70
Answer:
Option D
Explanation:
In simple words, the payment by government will work as a subsidy for the lost profits of the farmers and their income will be ineffective. Also, by not using that land the farmers can grow any other crop which can provide them higher income as compared to crops.
Such step will result in higher total revenue as wheat would not get wasted due to extra production, thus consumers will also not get hurt.
Answer:
Theory X
Explanation:
Theory X and Y in management were developed by McGregor. The basic premises of theory X are that workers do not necessarily like their work, they only for money, and unless you supervise them appropriately, they will not work well. It poses a negative view of employees and requires strict supervision.
Profit Margin = Net Income/Net Sales
Profit Margin = $6,125/$17,500 = 0.35= <u>35%</u>
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The profitability of your company can be gauged by looking at your profit margin. How much of each dollar of sales or services is retained as profit is stated as a percentage of those profits. In business, the profit margin is calculated by dividing the net income by the net sales or revenue. To calculate net income, or net profit, a business simply deducts operating costs from sales.
The difference between gross and net profit margins
While a high gross profit margin and solid operational profit margin are great signs, a low net profit margin indicates wasteful spending on non-core business functions. It's a sign that your running costs are higher than the price you're charging for your products or services if the operational profit margin is negative.
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