Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
Answer:
the stock price is $58.23
Explanation:
The computation of the price pay per share today is shown below:
Stock price is
= Current year dividend ÷ (required rate of return - growth rate)
= $11.15 × (1 - 0.06) ÷ (12% - (-6%)
= $10.48 ÷ 18%
= $58.23
Hence, the stock price is $58.23
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The one that distinguishes money from the other assets is that it is used as a medium of exchange
Explanation:
Money is one of the most important factor in our day to day lives it has become as defining the country's economic standard and it is widely accepted all over the world
Money is used as the medium of exchange because we can buy all the necessary things using the money and can use it as a medium to exchange of goods and services. There are also other important functions as the method of comparing the values
Complete question:
Security Term (years) Yield (%)
Treasury 2 0 5.5%
AAA Corporate 2 0 7.0%
BBB Corporate 20 8.0%
B Corporate 2 0 9.6%
Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to:
A) $891 B) $901 C) $1,000 D) $800
Answer:
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901
Solution:
Given,
FV = 1000,
N = 40,
I = 4,
PMT = 35
Compute PV ,
PV = 
PV = 901.04
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901
Answer:
$80,000
Explanation:
From the information given:
2020 = $320000
= i.e. 2020 = $570000
= i.e. 2019 = $530000
Change = $570000 - $530000 = $40,000
= $2,500,000
= $2,300,000
Change = $2,500,000 - $2,300,000 = $ 200000
∴
= $320000 - $40,000 - $ 200000
= $80,000
