Answer:
The correct answer is option A.
Explanation:
Sharon in consuming two goods X and Y.
The price of X is $2 and that of Y is $1.
The marginal utility derived from consuming X is 60 utils and from consuming Y is 30 utils.
For profit-maximization the ratio of marginal utility and price should be equal for both goods or the marginal utility of money spent on both goods should be equal.
The ratio for good X
= 
= 
= 30
The ratio for good Y
= 
= 
= 30
Since the ratio is same for both the goods it implies that Sharon is maximizing her total utility.
Answer:
The answer is below
Explanation:
a) The dividend growth rate is given as D2/D1 - 1
Year Dividend Growth rate
1 $1.25
2 $1.33 ($1.33/ $1.25 - 1) 6.4%
3 $1.4 ($1.4/$1.33 - 1) 5.26%
4 $1.51 ($1.51/$1.4 -1) 7.86%
The arithmetic average growth rate is the average of all the growth rates.
Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%
The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate
The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%
b) The geometric growth rate is given as:
geometric average growth rate =
The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%
A Joint Venture is a strategic alliance in which two existing companies collaborate to form a third, independent company.
Answer: False
Explanation:
The cash flow from investing activities is a cash flow section that shows cash generated or the cash that is spent which relates to activities involving investment and this include buying physical assets, the investments in securities, or sale of assets or securities.
Therefore, the above analysis I the question is wrong.
