Answer:
c. It shows the purchasing history of citizens by year.
Explanation:
CPI stands for Consumer Price Index. A census in CPI will provide the data about the changes in average price of customers goods and services that's bought by the households in a country.
A government can know the purchasing history of average citizens by examining the changes in these prices. (If the price increases, it usually indicates that more customers purchases that particular product.)
Answer:
a.
15%
b.
29.57
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,
P0 = D1 / r - g
Where
P0 = Price of stock
D1 = Future Dividend
r = Expected rate of return
g = Growth rate
a.
As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.
r = (D1 / P0) + g
As per given data
P0 = Price of stock = $34
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
Placing Values in the formula
r = ( $3.4 / 34 ) + 0.05
r = 0.15 = 15%
b.
As per given data
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
r = Expected rate of return = 16.5%
Placing Values in the formula
P0 = D1 / r - g
P0 = $3.40 / (16.5% - 5%)
P0 = $29.57
980 units times 325% is 3185 units in the peak month
Answer:elasticity using mid point formular : Q2 - Q1/(Q2+Q1) /2 X 100
P2-P1/ (P2+P1) /2 x100
60- 85 ÷(60+85) ÷ 2 x100 = -20.69
15-10 ÷ (15+10)÷ 2 x 100 = 40
Elasticity = -20.69/ 40
= -0.52
Explanation:
Answer:
total fixed cost= 90,000
Explanation:
Giving the following information:
A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. The variable costs per unit are $5.
The pretax income is calculated using the following formula:
Pretax income= total contribution margin - total fixed cost
60,000= 25,000*(11 - 5) - total fixed cost
60,000 - 150,000= - total fixed cost
total fixed cost= 90,000
