Answer:
Big Lake Bob
Production Possibilities Schedule:
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
Explanation:
Number of fishing lures carved in a week = 50
Number of duck decoys carved in a week = 25
This means that for every 5 duck decoys Big Lake Bob carves, he gives up 10 fishing lures.
Big Lake Bob's production possibilities schedule
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
b) Big Lake Bob's production possibilities Schedule is a table of numbers that illustrates the production possibilities of Bob's economy, with the alternative combinations of two goods that can be produced with limited resources (labor hours, capital, and materials, etc.) and technology.
Because the earth has finite resources,
Video games are a want not a need
Answer:
cost of equity = 13.2%
Explanation:
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
The model can me modified to determined the cost of equity having flotation cost as follows:
Cost of equity = D(1+r )/P(1-f) + g
d- dividend, p- price of stock , f - flotation cost , - g- growth rate
D- 3.50 , p - 3.50, f- 10% g- 5%
Applying this to the question;
cost of equity - 3.50× (1.05)/3.50×(1-0.1) + 0.05
= 0.1316 × 100
cost of equity = 13.2%
