They make laws to regulate the economy. Hope this helps :)
Answer: 13%
Explanation: The cost of equity can be defined as the return a company pays to its shareholders in return of bearing the risk of investing in the company.
As per the given figures in the question we can say that cost of equity can be determined with the help of dividend discount model, which can be equated as follows :-
where,
ke = cost of equity
D1 = expected dividend
P0 = current price
G = growth rate
So, putting the values into equation we get :-
= 13%
Answer:
False Statement:
B. Only II is False.
Explanation:
If the cash flow from a project is farther out, the present value will be lower, all else being equal. This is because of the time value of money. This concept states that the money you receive today is higher in value than the same amount received in the future. And if the future is father out, then the value of the money will continue to reduce in relative value based on this time value of money concept.
Answer:
D(p) = 2,000 ÷ Price + 434
Explanation:
The computation of the demand function is shown below:-
Number of units of the product = 3000 ÷ Price + C
834 = 2,000 ÷ $5 + C
834 = 400 + C
C = 834 - 400
C = 434
So, D(p) = 2,000 ÷ Price + 434
Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question
Answer:
Producers might offer product guarantees and warranties
Explanation:
In business, lemon problems refers to the problems that might occur during transaction that is caused by different information possessed by the sellers and the buyers
<u>For example,</u>
Let's say that Person A offered to sell 10 lemons for $1. Person B is interested to purchase it since average price for 10 lemons is $2. Person B believed that the transaction is worth it.
But, Person A knows that the Lemons sold is in bad condition before he even sell it. Person B doesn't know this, so when he receive the lemon, the value of the product become lower than he expected.
Offering guarantees can solve this problem. The buyers can obtain their money back if the condition of the product is not as promised by the sellers.
