The nations of Utopia and Paradise both produce popcorn and cola. They currently do not trade. Below are the Production Possibil
ities Frontiers for both countries, with current production levels marked by the blue point labeled \"No Trade.\" Note that the no trade point for Paradise is (6.00 cola, 6.25 popcorn) and the no trade point for Utopia is (4.25 cola, 3.00 popcorn). Use this information to answer the three questions below. Paradise UtopiaThe nations of Utopia and Paradise both produce popcorn and cola. They currently do not trade. Below are the Production Possibilities Frontiers for both countries, with current production levels marked by the blue point labeled \"No Trade.\" Note that the no trade point for Paradise is (6.00 cola, 6.25 popcorn) and the no trade point for Utopia is (4.25 cola, 3.00 popcorn). Use this information to answer the three questions below. Paradise Utopia1. Utopia and Paradise both decide to specialize in one product and trade for the other. Move the green \"Specialized Production\" points to reflect their new output levels. 2. Which of these prices, or terms of trade, will allow both countries to gain from trade?3. Utopia decides to sell half of its production to Paradise at this trading price. Move the \"With Trade\" points to the combination of popcorn and cola each country will be able to consume after trade.
1 answer:
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Answer:
The correct answer is D.
Explanation:
Equity = $231,000
No. of outstanding shares = 5,000
Price of share =
Price of share = $46.2
Repurchased shares worth $18,000
No. of shares repurchased =
No. of shares repurchased = 390
When the shares would have been repurchased then the value of equity would decrease by the same amount.
Revised equity = $231,000 - $18,000
Revised equity = $213,000
No. of shares outstanding = 5,000 - 390
No. of shares outstanding = 4,610
Thus, the price of each share would be:
Share price =
Share price = $42.60