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3 years ago

1. Which one of the following would be an example of a supply-side market failure?

Business

1 answer:

Dmitry [639]3 years ago

7 0

Answer:

C. Your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided.

Explanation:

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Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 a share. The expected growth rate in dividends

Anni [7]

Answer:

r = 13.68%

Explanation:

We can use Gordon growth model to calculate the stock price.

P = Do x (1+g) / r - g

P: stock price (Given: $95)

Do: Last dividend paid ($5)

g: Dividend growth rate (8%)

r: required return (Missing value)

By inputting the number into the above equation, we have the following:

95 = 5 x 1.08 / (r - 0.08)

--> r = 13.68%

4 0

3 years ago

Hammerstein Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan,

LekaFEV [45]

Answer and Explanation:

As per the data given in the question,

Fair value per share = $20.4

Number of Share = 2 million

Fair value of award = Fair value per share ×Number of Share

= $20.4 × 2 million

= $40.8 million

2) No Entry

Compensation expense($40.8 million÷4 years) $10.2 million

To Paid in capital - restricted stock($20.4-$10.2) $10.2 million

(Being the compensation expense is recorded)

Fair value per share = $20.4

Share granted = 2 million

(100%-10%) forfeiture rate = 90%

fair value of award = $20.4×2×90%

= $36.72 million

5 0

3 years ago

Upon graduating from college this year, you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to

Novosadov [1.4K]

Answer:

Income difference= $8,250

Explanation:

Giving the following information:

Actual salary= $25,000 per year

MBA salary= $35,000 per year.

Inflation rate= 5 percent.

We will separate the analysis. First, we will calculate the nominal increase. Then, the real increase based on purchasing power.

In nominal terms, the increase in income is equal to the difference between salaries.

Income increase= 35,000 - 25,000= $10,000 increase.

In real terms, we need to calculate the effect of inflation on your purchasing power.

Actual income= $25,000

MBA income= 35,000*0.95= $33,250

Income difference= $8,250

In other terms, the real purchasing power of the MBA income decreases. Therefore, the difference today between real salaries is lower than the nominal difference.

6 0

3 years ago

What accurately describes a company's efforts to engage customers, persuasively communicate customer value, and build custome

vodka [1.7K]

Answer:

Marketing Mix

Explanation:

Marketing Mix is a gathering of promoting factors that the firm joins and controls, to deliver the ideal reaction in the objective market. It is a significant showcasing device that involves every one of the components which impact the interest for the items offered by the firm. Marketing mix helps to build a healthy relationship with the customers.

5 0

2 years ago

You own a portfolio consisting of the following stocks:

kykrilka [37]

Answer:

expected return is 15.8%

portfolio beta is 94.5%

Explanation:

a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have

0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158

Multiply the result by 100% yields 15.8%

B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;

0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945

multiply the result by 100% yields 94.5%

6 0

3 years ago