All categories

3 years ago

Drag the tiles to the correct boxes to complete the pairs. Match each economic term with its description?

Business

1 answer:

VMariaS [17]3 years ago

5 0

Monopoly: There is a single seller in the market

Oligopoly: every company in this market structure is aware of the actions of the other companies (oligopolies are a small number of companies controlling the markets- there are elements of collusion in this structure because the firms work together to control prices and the market)

Perfect Competition: There are no barriers to entry (lots and lots of competing companies that each have a small share of the market)

Collusion: 3 companies secretly enter into a price agreement (this is illegal in many cases)

You might be interested in

. Based on the Empirical Rule, what percent of the observations will lie between plus or minus two standard deviations from the

frez [133]

Answer:

Empirical Rule or 68-95-99.7% Rule

Approximately 95% of the data fall within two standard deviations of the mean.

6 0

3 years ago

In December 2015, Apple had cash of $ 37.69 billion, current assets of $ 75.91 billion, and current liabilities of $ 76.31 bi

ollegr [7]

Answer:

(a) 0.99

(b) 0.96

Explanation:

(a) Apple's current ratio:

= Current assets ÷ Current liabilities

= $ 75.91 billion ÷ $ 76.31 billion

= 0.99

(b) Apple's quick ratio:

= (Current assets - Inventory) ÷ Current liabilities

= ($ 75.91 billion - $ 2.45 billion) ÷$ 76.31 billion

= 0.96

Quick ratio = 0.66

Current ratio = 0.90

In comparison to H-P assets quality Apple has much better quality. Current ratio and quick ratio of apple is better than H-P which shows that apple has better liquidity than H-P.

7 0

3 years ago

Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c

Oksanka [162]

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

EPS = net Income - dividends/ oustanding Shares

=906000-480180/200000

=$2.1291/$2.13

Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

5 0

4 years ago

Mr. Smith believes that there is going to be rise in the equities market. Based on this information, what would allow Mr. Smith

White raven [17]

Answer:

The answer is 'Buy a Stock Index Future'

Explanation:

To take best advantage of this situation, Mr Smith should go long(buy) on this stock.

Stock Index Future js a method of derivates. Futures, like forward contract is a forward commitment which obligates the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. Future is used to hedge against worse future situations.

7 0

4 years ago

Preferred stock valuation Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has

Nesterboy [21]

Answer:

(a) $51.92

(b) She will face a loss of $7.66

Explanation:

(a) Market Value of Preferred Stock:

= Dividend ÷ Required Return

= $5.40 ÷ 10.4%

= $51.92

(b) If she sells the stock when the required return on similar-risk preferred stocks has risen to 12.2%.

Market value of the securities:

= $5.40 ÷ 12.2%

= $44.26

therefore,

Market value of the securities - Market Value of Preferred Stock

= $44.26 - $51.92

= $7.66

She will face a loss of $7.66

3 0

3 years ago