Answer: On agriculture, textiles, and automobiles.
Explanation:
Answer:
$2.48
Explanation:
This morining a stock was purchased.
The stock just paid an annual dividend of $3.10 per share
A return of 9.2% is required
= 9.2/100
= 0.092
The growth rate is 4%
= 4/100
= 0.04
The first step is to calculate today's price
= D1/(r-g)
=3.10× 1+0.04/0.092-0.04
= 3.10×1.04/0.092-0.04
= 3.224/0.052
= $62
The price at the end of year 3 can be calculated as follows
= today's price × (1+g)
= 62×(1+0.04)
= 62×1.04
= $64.48
Therefore, the capital gain can be calculated as follows
Price at the end of year 3-today's price
= $64.48-$62
= $2.48
Hence the capital gain is $2.48
Answer:
A) Charge a price that is greater than marginal cost to maximize profits.
Explanation:
The more market power a company has, the more it will tend to act like a monopoly. For example, Microsoft is not considered a monopoly because it is the only software company in the world, but because its market power in the PC business is so large that it dominates the industry.
The law of diminishing returns states that, ceteris paribus, the rate of profit from an investment will continue to diminish as more capital ins invested into that product.
<h3>What is Ceteris Paribus?</h3>
Ceteris Paribus is a Latin phrase often quoted in economics that means "all things being equal". It is used to connote the fact that in the consideration of a law, sometimes it is assumed that all other factors are given or at play.
It is to be noted that the Law of Diminishing Returns is also applicable to Labor, Utility and Marginal Returns.
Learn more about the Law of Diminishing Returns at;
brainly.com/question/19070161
#SPJ12
Answer:
Residual income = Operating income - (r x Asset invested)
$8 million = $13 million - (r x 25 million)
$8 million = $13 million - r25 million
r25 million = $13 million - $8 million
r25 million = $5 million
r = $5 million/25 million
r = 0.2 = 20%
Thus, required rate of return is 20%
Explanation:
In this case, we need to apply the residual income formula. Operating income, asset invested and residual income have been given with the exception of rate of return. Thus, rate of return becomes the subject of the formula.
