477,202 are the projected sales after year 10.
Answer: Po = D1/Ke + g
$34.75 = D1/0.104 + 0.039
$34.75 -0.039 = D1/0.104
$34.711 = D1/0.104
D1 = 34.711 x 0.104
D1 = $3.61
Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.
Answer: Option (d) is correct.
Explanation:
According to the law of supply, it states that there is a positive relationship between the price of a commodity and the quantity supplied of a commodity. This means that as the price of a commodity increases, as a result the quantity supplied of that commodity increases.
Therefore, any change occur in the prices of a commodity will affect the quantity supplied of a commodity not supply of a commodity.
Answer:
$0.25
Explanation:
The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:
The marginal cost of the sixth pencil is $0.25
Answer:
This is an example of price leadership.
Explanation:
Price leadership is a type of practice where a firm, most likely a dominant one, sets the price and other firms follow it. It is commonly seen in an oligopoly market.
In an oligopoly market, there are a few firms, these firms are interdependent. A price change by one firm affects its rivals.
Price leadership is of different types.
- Barometric
- Collusive
- Dominant
So when a dominant firm changes its price, the followers have to follow it if we they want to retain their market share.
