Rate of return on reinvested earnings

Assignment Help Business Economics

Reference no: EM138152

Q1. Suppose the market is initially in equilibrium. The initial demand course is P= 90-Q. The initial supply curve is P=2Q. Suppose that the government imposes a $3tax on this market. How much of this is $3 is paid by the producers? Solution

Q2. What are the equations I use for this question:
Metatrend's stock will generate earnings of $5/share this year. The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%.

Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm (1) 0 % (2) 40% (3) 60%

Reference no: EM138152

Questions Cloud

Increase demand for the company : Should a company hire temporary workers or hire new workers to handle increase demand for the company's product.

Firm views that price as beyond its control : Suppose production price is 20. The firm views that price as beyond its control.

Example on chi-square approximation : Some researchers have conjectured that stem-pitting disease in peach tree seedlings might be controlled with weed and soil treatment. An experiment was conducted to compare peach tree seedling growth with soil and weeds treated with one of two her..

Evaluate the economic desirability of collusive pricing : Why might price collusion occur in oligopolistic companies. Evaluate the economic desirability of collusive pricing.

Rate of return on reinvested earnings : The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%

Using normal approximation evalute the p-value : The Wilcoxon signed rank test is computed for the data and gives a value W + = 161.5. Using the Normal approximation (without the continuity correction) the P-value.

Equivalent annual worth of costs : What is the equivalent annual worth of costs for the website over a total of 6 years at an interest rate of 12% per year.

Present discounted value of the cost of the car : Elucidate what is the present discounted value of the cost of the car if you use GM's interest-free financing

Supplier to the furniture producer : If you were a supplier to the furniture producer, would have chosen to see the analysis performed in physical sales units rather than dollars of revenue.

User Account

All Pages