Answer:
the price elasticity of supply is 0.555
Explanation:
The computation of the price elasticity of supply is given below:
= Percentage change in quantity supplied ÷ percentage change in price
= (25 - 20) ÷ (25 + 20) ÷ 2 ÷ (750 - 500) ÷ (750 + 500) ÷ 2
= 5 ÷45 ÷ 250 ÷ 125
= 0.555
Hence, the price elasticity of supply is 0.555
The same is relevant
Answer:
Cost of goods sold as per average cost method = $92,458.5
Explanation:
As for the information provided as follows:
Opening Inventory 265 units @ $153 each = $40,545
Purchase 465 units @ $173 each = $80,445
Purchase 165 units @ $213 each = $35,145
Total data 895 units = $156,135
Average cost per unit = $156,135/895 = $174.45
In average cost method simple average is performed, whereas in weighted average weights are assigned.
Sale is of 530 units
Cost of goods sold as per average cost method = $174.45 
530 = $92,458.5
Answer:
Option B, have the same intercept with a flatter slope; fall.
Explanation:
Option B is correct because a more risk-averse person faces a steeper curve while the less risk-averse person faces a flatter slope. While the more risk-averse person has more return on the stock while the less risk-averse person has less return. Therefore, in the given situation, the SML will have the flatter slope and its return will fall. As it is a less risk-averse investor.
Answer: False
Explanation:
First calculate the expected value for both securities:
Security AA:
= (0.2 * 30%) + (0.6 * 10%) + (0.2 * -5%)
= 6% + 6% + (-1%)
= 11%
Security BB
= (0.2 * -10%) + (0.6 * 5%) + (0.2 * 50%)
= -2% + 3% + 10%
= 11%
<em>They both have the same expected return so the investor will be indifferent. Statement is therefore false.</em>
Answer:
56.47% is the current share price
Explanation:
To solve this question, we use the mathematical approach.
First, we calculate the current share price =
$8.45*Present value of annuity factor(11.2%,13)
But before we can get the value for the current share price, we need the value for the present value of annuity factor.
Present value of annuity factor = Annuity[1-(1+interest rate)^-time period]/rate =
8.45[1-(1.112)^-13]/0.112=
= $8.45*6.682519757 = 56.47%
