Answer:
False
Explanation:
The product specification should include constituent and its proportion in the product. This detail is missing in the statement and hence it is false.
Approved substitutes need not be mentioned on the specification thus corroborating the fallacy of the statement
Answer:
P0 = $14.4683 rounded off to $14.47
Explanation:
To calculate the market price of the stock today, we will use the constant growth model of DDM. The constant growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 is the dividend today
- g is the constant growth rate
- r is the required rate of return on the stock
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.06 + 1.6 * (0.147 - 0.06)
r = 0.1992 or 19.92%
Using the price formula for DDM above, we can calculate the price today to be,
P0 = 1.9 * (1+0.06) / (0.1992 - 0.06)
P0 = $14.4683 rounded off to $14.47
Answer: D (impulse purchases)
Explanation:
Just took the quiz
Answer: average curve is on the rise or increase.
Explanation: When marginal cost falls, it drops to a minimum value and then increases again. This is because the marginal cost curve intersects both the average variable cost curve (AVC) and the (short-run) average total cost curve at their minimal points. So whenever marginal cost curve is above an average cost curve this implies that the average curve is on the rise or increase.
