Answer:
The correct answer is: microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
Explanation:
Economics is divided into two different categories: microeconomics and macroeconomics. <u>Microeconomics </u>is the study of individuals and business decisions, while <u>macroeconomics </u>looks at the decisions of countries and governments. They are interdependent and complement one another since there are many overlapping concerns between the two fields.
<u>Microeconomics </u>is the study of decisions made by people and businesses. Microeconomics focuses on supply and demand and other forces that determine the price levels in the economy. Microeconomics tries to understand human choices and resource allocation.
<u>Macroeconomics</u>, on the other hand, studies the behavior of a country and how its policies affect the economy as a whole. It analyzes entire industries and economies. Macroeconomics focuses on aggregates and econometric correlations.
Answer:
Debit Cash $110,000
Credit Land $100,000
Credit Gain on sale $10,000
Explanation:
On January 15, the partnership sold the land for $110,000, that is more than its cost of $100,000. In effect, the sale will result to a gain of $10,000 ($110,000 - $100,000). To record the said transaction, we must debit the cash that the partnership received in the amount of $110,000 and credit land $100,000 to remove it from the book and another credit to gain on sale in the amount of $10,000 to recognize the favorable sale.
Answer:
strategic takes a long time, its like long division in math. Control, you cant control most things unless ur a big person in a company/buisiness.
Explanation:
Answer:
A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
Explanation:
Real option analysis
This is simply described as a form of an analysis of capital budgeting projects. It is often used by managers so as to influence the size and riskiness of a project's cash flows. And this can be done only by taking different actions or at the end of the project's life.
It uses the usual NPV capital budgeting analysis along with an analysis of opportunities as a result of manager's responses to changing circumstances that can change a project's outcome.
Examples of Real Options
1. Investment timing
2. Abandonment/shutdown
3. Flexibility
4. Growth/expansion
Flexibility Option
This type of re option simply allows operations to be changed based on how conditions change during a project's life. It is said to exists when it is useful spending money today, which therefore helps one to maintain flexibility down the line. That is, either inputs or outputs (or both) can be altered.
Answer:
what is the the price of a share of IBM's stock?
Price of a share of IBM's stock = $8.90 per share
Explanation:
<u>Calculation of the price of a share of IBM's stock</u>
<em>Price of a share of IBM's stock = Sum of Present values of all future dividends discounted at cost of capital i.e.12%</em>
<u>Working</u>
Per Year Dividend from 3rd Year on-wards = Earnings per share x (1 - retention %) = $2.5 x (1 - 0.40) = $1.50
Value of perpetual dividend = Dividend payable / equity cost of capital = $1.5 / 12% = $12.50
Calculations are attached:
