The expected value (EV) is a
probable value for a given investment. By calculating expected values,
investors can decide the scenario most likely to give them their preferred result.<span>
<span>
Formula for expected value is:</span></span>
Expected value = stock return’s annual
dividend divided by (required return – dividend growth rate)
P₅= [$1.40×(1 + 0.02)₆<span>]/(0.16 - 0.02) = $11.26</span>
The answer is $11.26
Answer:
TRUE
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In the short run, the firm would continue to operate if its revenue covers variable cost. if it doesn't it would shut down.
Answer:
The price of Android tablets will increase.
The demand for Android tablets will increase.
Explanation:
iPads and android Tablets are direct competition for one another.
So, when the average prices of an ipad goes up , some percentage of the <u><em>consumers will seek alternatives for similar product.</em></u> This is why the demand for android tablets will increase.
But, there is one more point to consider.
Online retailer tend to sell different brands of a similar product to its consumers. It is very likely that big retailers will sell both apple and andorid products in their store.
<u><em>if the price of Ipad goes up because of the change in the retailer's sale policies, that change will definitely affect the price of the android as well</em></u>
Because of this, The price of Android tablets will also increase. Even though the increase may not be as high as Ipad since they have lower baseline price/
Relevancy ranking suggests internet search result will be placed in order of the order of the most relevant to the search query. The first item on the ranking should be the most relevant and then as the list goes down they are less related to the topic being searched for.
Answer:
EOQ 400 units
inventory cost $1,200
holding $600
ordering $600
reorder point 369.9 pounds
Explanation:
EOQ
<u>Where:</u>
D = annual demand = 200 days x 75 pound per day = 15,000
S= setup cost = ordering cost = $ 16
H= Holding Cost = $ 3
EOQ 400
Inventory cost:
average inventory x holding cost
400/2 x $3 = $600 holding cost
order per year x order cost
15,000/400 x $16 = $600 order cost
<u>reorder point: demand x lead time + safety stock</u>
to get a confidence of 99% we need to look at the table for a Z value which is above 99% of the cases and then, move it to our ditribution.
In the talbe we got at a Z of 2.33 has a score of 0.99 which is the probability we want.
Now we calculate the safety stock
safety stock: 69.9
This is the safety stock
Now the company will reorder at:
daily use x lead time + safety stock:
75 x 4 + 69.9 =
300 + 69.9 = 369.9
