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2 years ago

Economics - What’s an example where the market approach would not be appropriate? Why?

1 answer:

5 0

try defining what a market approach is: a method of determining the value of a product based on the selling price of similar products.

you can then proceed to think of a specific product or brand which is extremely overpriced (meaning sales volume will be low) or underpriced (meaning profit is not as much as it could be).

a simple example of this could be misjudging the value of real estate, and selling houses, land and other infrastructure for either much more or much less than you should

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A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expect

kipiarov [429]

Answer:

$18.29

Explanation:

It is very simple as per the question to calculate the current stock price.

The formula for calculating the Stock price is,

P = D/(r-g)

Hence, we calculate as follows,

Price = 0.75/(0.105-0.064)

Price = 0.75/0.041

Price = $18.29

Good Luck.

5 0

3 years ago

Describe two ways in which the organisation supports the community?

enyata [817]

Explanation:

This often includes inclusive networking, interpersonal organizing, listening, reflexivity, non-violent communication, cooperation, mutual aid and social care, prefiguration, popular education, and direct democracy.

3 0

3 years ago

Read 2 more answers

Ksivusya [100]

Answer:

Replication

I just take the test, it's right answer.

7 0

3 years ago

Read 2 more answers

Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable sta

Solnce55 [7]

Answer: See explanation

Explanation:

Number of units sold = 76000

Percentage repair= 2%

Estimated defective units = Percentage repair × Units sold = 2% × 76000 = 1520

Actual defective units = 490 + 350 + 210 = 1050

Unclaimed warranty = Estimated defective units - Actual defective units = 1520 - 1050 = 470

Repair cost = $50

Warranty expense = 470 × $50 = $23500

The journal entry will then be:

31 December:

Debit: Product warranty expense = $23500

Credit: Estimated liability for product warranty = $23500

3 0

3 years ago

What is the expected dividend to be paid in 3 years if yesterday's dividend was $6.00, dividends are expected to grow at a const

kirill [66]

Answer:

D3 = $7.146096 rounded off to $7.15

Explanation:

The dividend growth projected for the stock expects the stock to grow at a constant rate of 6% each year over an indefinite period of time. This means that the $6 dividend paid by the stock in the current year will grow by 6% every year over its life. Thus, the expected dividend to be paid in 3 years will be calculated as follows,

Lets say that the dividend just paid is D0. Thus, the dividend to be paid in 3 years will be D3. So, D3 will be calculated as follows,

D3 = D0 * (1+g)^3

D3 = 6 * (1+0.06)^3

D3 = $7.146096 rounded off to $7.15

5 0

3 years ago