Answer:
stock price =$87.12
Explanation:
stock price is given as
where,
free casg flow = $6,48,200
required growth = 10%
growth rate = 3.8% = .038
number of outstanding shares = 120,000
putting all value to get stock price
stock price =$87.12
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The following statements describe the economic concept of scarcity:
1. All useful resources are limited.
2.Resources are scarce which explain why we are willing to pay for them.
3. Because of scarcity, individuals must make choices.
In economics, scarcity is the study of how people attempt to satisfy their needs and wants by making choices. The principle of scarcity states that limited goods and services are available to meet unlimited wants.