Answer:
a) help to evaluate what happened in the past.
Explanation:
The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way
Also it helps to analyze and evaluate what is happened in the past
Therefore the option a is correct
Answer:
The answer is 'it increases the number of shares outstanding'
Explanation:
Stock split increases the number of shares outstanding. It causes dilution of earnings per share.
For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.
This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)
Answer:
Primary socialization occurs early in a child's life and is primarily due to the influence of family and close friends. Through primary socialization, a child learns basic societal norms and customs. Toilet training is an example of primary socialization.
Explanation:
Answer:
Market failure
Explanation:
Market failure is the economic situation where goods and services are not evenly spread out on the market.
In question resources (location) is in favour of New Monopoly seaport and shipsbare forced to wait and enter the port.
Ideally, in a free market resources are to be efficiently distributed so that people do not have to go to only one place to get a good or service.
It is similar to a monopoly in the free market.
Answer:
(i) $26.49375
(ii) $29.11
(iii) 52.54%
Explanation:
Required rate of return using CAPM model:
= risk free rate + beta (expected return - risk free rate)
= 0.06 + 2.3 (0.15 - 0.06)
= 0.267 or 26.7%
Growth rate = (1 - dividend payout ratio) × ROE
= (1 - 0.45) × 0.18
= 0.099 or 9.9%
a)
Dividends per share will be $4.05 since payout ratio is 45%
Intrinsic value of share = D1 ÷ (Rate - growth)
= 4.05(1.099) ÷ (0.267 - 0.099)
= 4.45095 ÷ 0.168
= $26.49375
b)
Price after 1 year = 26.49( 1 + 0.099)
Price after 1 year = $29.11
c)
One year holding period return = ( $29.11 + 4.45 - 22) ÷ 22
= 0.5254 or 52.54%