Answer:
Higher prices.
Explanation:
Expansionary monetary policy seeks to grow the economy by increasing the money supply, lowering interest rates, and stimulating demand. As we know from the supply/demand curves, higher demand leads to higher price levels.
Answer:
Total contribution margin= $76,328
Explanation:
<u>First, we need to calculate the unitary contribution margin:</u>
Unitary contribution margin= 64,960 / 4,000
Unitary contribution margin= $16.24
<u>Now, the total contribution margin for 4,700 units:</u>
Total contribution margin= 16.24*4,700
Total contribution margin= $76,328
Answer:
Stock price = $74.26
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio</em> .
The ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.
Price of stock =Earnings per share( EPS) × benchmark P/E ratio
The appropriate comparative price earnings ratio in the question has been given as 18.8 times.
DATA-
EPS- 3.95
PE- 18.8
Stock price = 3.95 × 18.8= $74.26
Stock price = $74.26