Answer:
D. lower than the equilibrium price.
Explanation:
Markets are at equilibrium where demand = supply & demand, supply curves intersect.
Price ceiling is maximum price mandated by the government at which a good can be sold in the market. It is usually below equilibrium price, set to bring necessity goods under affordable price bracket of poor people.
This artificially reduced price creates excess demand or shortage (less supply), because at the lower price - demand is more but supply is less.
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Answer:
The correct answer is letter "B": employee; customer; shareholders.
Explanation:
Kip Tindell, Chairman & CEO of The Container Store during an interview for Forbes (2014), stated that <em>a company's culture should focus on employee satisfaction since it is likely to be reflected in optimal customer service. When both, workers and clients are happy, shareholders will be happy, too</em>.
During the interview, Tindell explained that The Container Store's approach consists of giving employees better wages and training so they can keep motivated and treat consumers better which will make them return over and over again to the business. This is translated into higher profits for the company for the shareholder's satisfaction.
As per the dividend distribution model, the cost of equity = D1/P0 + g
where D1 = next year's dividend = 1.10
P0 = Current stock price = 21.80
g =growth rate = 4.5% =0.045
Cost of equity = 1.10/21.80 + 0.045 = 0.095458 = 9.5458% = 9.55%(Rounded)
Answer:
B. Negative, Negligible
Explanation:
Interest Rate is negatively related to Investment. Higher Interest Rate increases cost of investment, lower interest rate reduces cost of investment.
However, Investment in a particular sector/ industry is also defined by: Concentration of that sector in entire investment outlay & Income Elasticity of the sector's commodity demand. Implicatively, a sector with huge concentration of investment outlay & products with high income elasticity will have more Interest rate sensitive Investment and vice versa.
Construction Industry being very capital intensive has higher investment magnitude & also more Income Elastic demand. So, impact of higher interest rate will impact this industry more.
Necessity goods Industries are less capital intensive , investment concentrated & also have less Income Elastic Demand. So, impact of higher interest rate will impact this industry less.
<em>(Demand's Income Elasticity is the responsiveness of a good's demand to change in Income. It is more in luxurious goods, less in necessity goods)</em>
