Answer:
D. Assume that people behave rationally.
Explanation:
When a decision maker chooses the option leading to the outcome that he or she most prefers, he or she has made a rational decision. These are the decision that based on facts, data and research, which make it more credible and worthy to be trusted. Therefore most economic model consider every people behave rationally and read information to get aware about situation and can implement economic tools.
The answer is B. Batteries contain sulphuric acid, of the battery is damaged the acid can be corrosive but it’s not toxic too rich, simply dispose of it.
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
Answer:
<u>Ajinomoto will likely not have an incentive to increase or change its output of MSG.</u>
Explanation:
Remember, marginal cost focuses on the increase in cost additional unit of a product. Therefore, based on the limited information provided, Ajinomoto's decision will likely be based on it's market share. If the marginal cost equals zero, and it has more of the market share it will likely not influence them to change or increase their output.
False, I thinkkkkk but I’m not sure