A mass refusal to buy products from certain employers or companies.

The price elasticity of demand is –1.25, and the share of the tax borne by consumers is 0.80. what is the price elasticity of su

Musya8 [376]

Price elasticity of demand is -1.25 = Ed

Price elasticity of supply = Es

Share of tax by consumers = 0.80 = Es / (Ed + Es) = Es / Es + 1.25

0.8 Es + 1 = Es

1 / 0.2 = Es = 5

Therefore, the price elasticity of supply is 5

3 0

4 years ago

Economic Ordering Quantity (EOQ). The Gentry Garden Center sells 100,000 bags of lawn fertilizer annually. The optimal safety st

GalinKa [24]

Answer:

1. Annual demand ( D) = 100,000 bags

Ordering cost per order (Co) = $15

Holding cost per item per annum (H) = 15% x $2 = $0.30

EOQ = √2DCo

H

EOQ = √2 x 100,000 x $15

0.30

EOQ = 3,162 units

2. Maximum inventory

= Safety stock + EOQ

= 1,500 + 3,162

= 4,662 units

3. Average inventory

= EOQ/2

= 3,162

2

= 1,581 units

4. Number of order

= Annual demand

EOQ

= 100,000

3,162

= 32 times

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

Maximum inventory is the aggregate of safety stock and EOQ.

Average inventory is economic order quantity divided by 2

Number of order is the ratio of annual demand to economic order quantity.

3 0

3 years ago

Estimate of total percentage of total outstanding stocks globally held unhedged on the trading books of top investment bank deal

Usimov [2.4K]

Answer:

To estimate the total percentage of total outstanding stocks globally held unhedged on the trading books of top investment bank dealers, is the number of issued shares minus the number of shares held in the banks´ treasury, or the number of stocks outstanding, without considering the float.

Explanation:

The float or stock shares outstanding not held by individuals or associated corporations, percentage of 10% to 20%, is considered low and it means that the amount of available shares is not high. This percentage also gives you the idea on the stocks´ volatility.

4 0

3 years ago

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expect

jonny [76]

Answer:

Option B ,$26.57 is correct

Explanation:

The cost of equity =Rf+Beta*Mrp

Rf is the risk free rate of 3.00%

Beta of equity is 1.20

Mrp is the market risk premium which is 5.50%

Cost of equity=3.00%+(1.20*5.50%)=9.60%

Stock price =present value of dividends+present value of terminal value

D1=$1.25*(1+22%)/(1+9.6%)^1=$ 1.39

D2=$1.25*(1+22%)^2/(1+9.6%)^2=$ 1.55

D3=$1.25*(1+22%)^3/(1+9.6%)^3=$ 1.72

D4=$1.25*(1+22%)^4/(1+9.6%)^4=$ 1.92

terminal value=year 4 dividend/(r-g)

year 4 dividend=$1.25*(1+22%)^4= 2.77

r is the cost of equity of 9.6%

g is the dividend afer year 4 which is 0%

terminal value= 2.77/(9.6%-0%)=$ 28.85

present value of terminal value= 28.85/(1+9.6%)^4=$ 19.99

Total present values=$ 1.39+$ 1.72+$ 1.92 +$ 1.92 +$ 19.99 =$26.58

8 0

3 years ago

Director independence and non-interlocking directorships are desirable traits of top-ranked boards. What does this mean?

Kitty [74]

Answer:

This means that Directors are free of all ties to the CEO and the company.

Explanation:

Director Independence means a director on the board of directors of an organization should have no ties or links to the organization or any member of that organization.

Non-interlocking directorship means that a director in a firm should not be a director, or part of the management team, in another competing firm.

Top-ranked boards would prefer to avoid interlocking directorship when appointing a board member, and also that an independent director selected to be part of the board, has no previous ties to the company or any of its employees.

8 0

3 years ago