Answer:
the required return on the preferred stock is 3.33%
Explanation:
The computation of the required return on the preferred stock is shown below:
= Dividend ÷ Selling price per share
= $2.50 ÷ $75
= 3.33%
Hence, the required return on the preferred stock is 3.33%
We simply applied the above formula
Answer:
The correct answer is: black market for apartments whereby higher rents are obtained through various other charges.
Explanation:
A price ceiling refers to an upper limit fixed for the price of a product or service. A rent ceiling means that rent cannot be charged higher than this limit.
This rent ceiling would create higher demand and a smaller supply of apartments. This is because of law of demand and law of supply.
Because of shortage of apartments in the market, a black market will be created where the apartment owners will be able to charge higher rents through other charges.
Answer: false
Explanation: The rationing function of price describes the way in which the use of price is done for rationing of several scarce resource. This is done automatically by the market forces of demand and supply as when the demand for a commodity exceeds its supply the price of the commodity rises leading to decrease in demand.
Thus, rationing function states to ration the goods and distribute them carefully and not to distribute the surplus amount.
Answer:
false
His purchase left GDP unchanged
Consumption of non durables would increase.
Also, net export would decrease.
these effects would cancel out
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Answer:
A. The definition of a market in determining the price elasticity of demand.
Explanation:
Price elasticity of demand is the height of responsiveness of demand or purchase to changes in price. It shows how consumers or buyers would react to the demand for a product when the price of their favourite brand increases.
Reaction of consumers in the market place is one of the determinants of price elasticity of demand. It tells how buyers will switch to different brand of products if the price of their favourite brand increases. It also shows how consumers will adjust their spending abilities if the price of all the brands are increased at the same time.
Alternatively, consumers would demand for the brand that falls within the limit of their spending.
