When a company price gouges they are increasing the price of a good or service in relation to the demand or supply of the item. If there is an anti-price gouging law in place, that means that a company is not allowed to change the price of their product even when the market for it is high.
Answer:
P5 = 42.77671205 rounded off to 42.78
Explanation:
The constant growth model of the DDM will be used to calculate the price of the stock. The DDM values a stock 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,
- g is the constant growth rate
- D0 is the dividend paid today or most recently
- r is the required rate of return
As we use D0 * (1+g) or D1 to calculate the value of the stock today (P0), we will use D6 to calculate the value of the stock 5 years from now.
D6 = 4.9 * (1+0.02)^6
D6 = $5.518195854
P5 = 5.518195854 / (0.149 - 0.02)
P5 = $42.77671205 rounded off to $42.78
Answer:
This is <em>false. </em>
Explanation:
You only have so much room on a resume, and refrences can be a waste of space. Typically, refrences are given upon request.
Hope this helped.
Answer:
The correct answer is letter "D": Changing prices result in an inconsistent and/or inaccurate estimate of inflation.
Explanation:
The Consumer Price Index or CPI is considered the benchmark inflation guide for the U.S. economy. It uses a basket-of-good approach that aims to compare a consistent base of products from year to year. Focusing on products that are bought and used by consumers daily.
<em>The drawback of the CPI is the gap between the time in which information about those prices are collected and the time the CPI is useful to assess. Typically the prices are obtained monthly or bimonthly against the report of the CPI done each quarter or yearly. As CPI is one of the main measures of inflation, the previously explained could lead to inaccurate estimations of inflation.</em>