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Yuliya22 [10]
3 years ago
12

The classical model assumes that wages and prices A. are flexible in the long run but not in the short run. B. are always comple

tely flexible. C. are flexible upwards but not flexible downwards. D. are flexible downwards but not flexible upwards.
Business
1 answer:
PtichkaEL [24]3 years ago
3 0

Answer:B. are always completely flexible

Explanation:The classical theory proposes that all markets reequilibrate because of adjustments in prices and wages which are flexible. For instance, if an excess in the labor force or products exist, the wage or price of these will adjust to absorb the excess. If prices and wages are flexible, markets reequilibrate.

Wages are said to be flexible when they respond to changes in supply and demand and lead to the market clearing wage being set. It implies that the wage will be set by the Marginal Revenue Product of labour and marginal cost of labour. Any change in supply and demand for labour will lead to a change in the wage rate.

The importance of wage flexibility arises from the fact that, in most macroeconomic models, we find an inverse relationship between wages and employment.

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In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
KiRa [710]

Answer:

Explanation:

Calculation for 5th year dividend.

Year Dividend Growth Dividend

1 1.23 1.18 1.45

2 1.45 1.18 1.71

3 1.71 1.18 2.02

4 2.02 1.18 2.38

5 2.38 1.18 2.81

Now we find EPS for 5th year through payout ratio.

EPS5 = D5 / Payout ratio

EPS5 = $2.81 / 0.30

EPS5 = $9.37

Calculation for price.

P0 = Benchmark PE ratio x EPS5

P0 = 18 ($9.37)

P0 = $168.66

B. What is the stock price today.

Year Dividend Table value at 14% PV of dividend

1 1.45 0.8771 1.27

2 1.71 0.7694 1.32

3 2.02 0.6749 1.36

4 2.38 0.5920 1.41

5 171.47 0.5193 89.04

Total 94.40

Stock price today = $94.40

6 0
3 years ago
Read 2 more answers
-2x^2y, if x=-3 and y=-1
REY [17]
It would be 6 because -2x-3= 6 and the exponent comes out to one so 6 times nothing is 6. :)
3 0
2 years ago
True/False
lara [203]

Answer:

the answer is True.

Explanation:

There are 2 traits in an effective market segment.

  1. It is internally homogeneous (potential customers in the same segment prefer the same product qualities ).
  2. It is externally heterogeneous. In other words, potential customers from different segments have different quality preferences. It responds consistently to a given market stimulus.
4 0
3 years ago
True or false: apple computer, inc. collected information on the age of their customers. the youngest customer was 12 and the ol
vova2212 [387]
Yeah, a pie chart lets you see which color is larger/bigger. Like more young customers or more older customers.
3 0
3 years ago
Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows in future
Neko [114]

Answer:

The correct answer is A: %70,154

Explanation:

Giving the following information:

True: Finding the present value of cash flows in future years tells you how much you would need to invest today so that it would grow to equal the given future amount.

What is the value today of a $158,000 cash flow expected to be received 12 years from now based on an annual interest rate of 7%?

We need to use the following formula:

PV= FV/(1+i)^n

FV= final value

i= interest rate

n= number of years

PV= 158000/(1.07^12)= $70,154

3 0
3 years ago
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