Comparative: D.
Absolute: B.
Explanation:
Comparative is about opportunity cost whilst absolute is about the quantity productivity efficiency
Answer:
The market price is $12.81 per share.
Explanation:
The price of the stock today can be calculated using the constant growth model of DDM as the dividends are expected to grow at a constant rate. The formula to calculate the price of the stock under constant growth model is,
P0 = D1 / r-g
Where,
- D1 is the Dividend for the next period or D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
P0 = 2.44 * (1+0.05) / (0.25 - 0.05)
P0 = $12.81
Answer:
Option B is the answer
Explanation:
Avoidable costs = 20,000+55,000+45,000 + (8*5000)+30,000
= 190,000
= 190,000/5,000 units
= $38 Option B is the answer
Answer:
1) It is a price floor which is binding as employeer cannot hire teenagers willing to work below 24 dollars per hour
2) it is a price celling and is biding as the current equilibrium price is 3.00 There will be shortage as demand will icnrease for the lower price but supply decrease as it is not as profitable
3) it is a price floor which is also binding as the equilibrium is at 3 dollars the supplier will have to increase price and sales volume will be lower as demand will drop
Explanation:
