Answer:
<em>The elasticity of Yvette's labor supply is 2.67 and the value is greater than 1 so the wage range is elastic.</em>
Explanation:
The wage one is given as= $35
The Quantity of time is given as =4 hours
The second wage is given as =$45
The quantity of time for second wage is =8 hours
So the calculation of elasticity is as
By replacing the values
So <em>The elasticity of Yvette's labor supply is 2.67 and the value is greater than 1 so the wage range is elastic.</em>
Answer:
P5
Explanation:
The value of the stock today is the present value of all the expected cash-flows that are likely to accrue to the investor who buys the share today. If an investor buys the share today, he is likely to receive D1, D2, D3, D4, D5 and in addition, using the going concern concept, the investor is also expected to receive all the dividends from D6 till infinity. The present value of the dividends D5 till infinity is equal to P5.
Imagine an investor who wants to buy the share at the end of year 5. He would value the share at that point by calculating the present value of all his expected cashflows, which would be the present value of D6, D7, D8 etc till infinity. Given a constant growth grate, the Gordon Growth Constant model can be used to find P5 as follows:
where D6 = D5(1+g)
therefore