Answer:
a. setting a price higher than the going price results in zero sales
Explanation:
Perfect competition markets are theoretical since there is not perfectly competitive market in the world, but some markets, specially commodities, work in similar ways. All the markets that work similarly to perfect competition markets have many sellers and buyers, and that prevents any individual seller or buyer from having to much market power, so all of them must be price takers if they want to sell their goods.
Answer: -3,300Nm or -3,300 Joules
Explanation:
Work = F X d
Where:
F = force = 1,500 N
d = distance = 2.20m
We will be taking into consideration that the work that the tension force on the rope does to Magnus is negative because the force goes against Magnus.
This is in accordance with Newton' third law, which states that for every action, there is an equal and opposite reaction.
Therefore, we have:
W = F X d
W = 1,500 X 2.20
W = 3,300Nm
Since we are not calculating the work done by Magnus, but rather the opposite work done by the rope, our answer will be negative.
We therefore have:
-3,300Nm or -3,300 Joules.
Answer:
B) Company HD has more net income.
Explanation:
The total debt to capital ratio is calculated by dividing total liabilities by the sum of total shareholders' equity + total debt:
- debt to capital ratio = total debt / (total debt + total equity)
Since company HD uses more debt to finance its operations, its net income will be lower since it has to pay more interests, but its ROE will be higher since equity is much lower also. Companies that use a lot of financial leverage are more risky but at the same time can generate higher returns to their owners.
Answer:
Return on equity(r) = 0.16
Plowback ratio(b) = 50 = 0.5
Earnings per share(EPS) = $2
D1 = 50% x $2 = $1
Cost of equity(Ke) = 0.12
Growth rate(g) = b x r
= 0.5 x 0.16
= 0.08 = 8%
Current market price(Po) = D1/Po + g
= $1/0.12 - 0.08
= $25
Market price in 3 years = Po(1+g)n
= $25(1+0.08)3
= $25(1.08)3
= $31.49
Explanation:
In this case, we need to calculate growth rate by multiplying the plowback ratio by return on equity. Then, we will calculate the current market price as shown above. Thereafter, we will subject the current market price to a 3-year growth rate to calculate the market price in 3 year's time
