Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
When competition is present and property rights protected and enforced, market prices will encourage self-interested individuals to develop skills that are expected to be valuable in the future. A system of well-defined, secure private property rights promotes economic performance and progress.
Answer:
The present value of growth opportunities is $23.08
Explanation:
EPS = dividend/payout ratio
= 5/50%
= 10
The present value of growth opportunities
= (Price with growth -EPS)/cost of capital
= (100 - 10)/0.13
= $23.08
Therefore, The present value of growth opportunities is $23.08
Answer:
B. Public relations
Explanation:
Public relations is the strategic process whereby an organization builds a mutually beneficial relationship between them and the general public. It is a form of creating a stronger brand reputation. By sending donation envelopes to each family in the neighbouring county, the Musuem and its officials are engaging in public relations. It involves engagements between an organization its surrounding public.
Answer:
$404,634
Explanation:
the formula that we can use to calculate equivalent annual costs is:
EAC = asset price x {discount rate / [1 - (1 + discount rate)⁻ⁿ]} + annual maintenance costs
EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000
EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000 = $234,634 + $170,000 = $404,634
EAC is basically the cost of using an asset during its lifetime. We are determining the cost per year, assuming that they are all equal.