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PilotLPTM [1.2K]
4 years ago
8

Because they can control product price, monopolists are always assured of profitable production by simply charging the highest p

rice consumers will pay.
True or False?
Business
1 answer:
lara [203]4 years ago
8 0
I think it’s False


-TwoTime-
You might be interested in
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, an
Marrrta [24]

Answer:

a. 13.33%

b. 10%

c. 8%

d. 5.71%

Explanation:

The computation of nominal rate of return is given below:-

Rate of return = Dividend ÷ Current market price

For the first case

= $8 ÷ $60  

= 13.33%

For the second case

= $8 ÷ $80

= 10%

For the third case

= $8 ÷ $100

= 8%

For the fourth case

= $8 ÷ $140

= 5.71%

Note :- To get $8 you need to multiply by $100 by the 8%

8 0
3 years ago
Four percent of the customers of a mortgage company default on their payments. a sample of five customers is selected. what is t
Maurinko [17]
We can use the formula for binomial distribution in calculating for the probability that exactly two customers out five will default on their payments.

The formula is:   P(r) = nCr*q^(n-r)*p^r   
Where:
n = sample size, 5
r = successes, 2
q = failure rate, 96% = 0.96
r = success rate, 4% = 0.04  

Substituting on the formula:
P = 5C2*0.96^3*0.04^2 
<span>P = 0.0142 or 1.42%</span>
8 0
4 years ago
Your company is estimated to make dividends payments of $2.2 next year, $3.9 the year after, and $4.8 in the year after that. Th
marysya [2.9K]

Answer:

$63.01

Explanation:

The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.

Year 1 dividend =$2.2  

Year 2 dividend =$3.9

Year 3 dividend =$4.8

Terminal value=Year 3 dividend*(1+constant growth rate)/(required rate of return-constant growth rate)

constant growth rate=2%

the required rate of return=9%

Terminal value=$4.80*(1+2%)/(9%-2%)

Terminal value=$69.94

Present value of a future cash flow=cash flow/(1+required rate of return)^n

n is 1 for year 1 dividend, 2 for year 2 dividend , 3 for year 3 dividend,  and terminal value(terminal value is stated in year 3 terms)

stock price=$2.2/(1+9%)^1+$3.9/(1+9%)^2+$4.8/(1+9%)^3+$69.94/(1+9%)^3

stock price=$63.01  

8 0
3 years ago
How did goldsmiths increase the money supply?
kolbaska11 [484]

Goldsmiths increased money supply by cheating out their competitors, and being the best at what they did.

6 0
4 years ago
Read 2 more answers
Glenn sells a piece of equipment used in his business for $31,500 during 2019. The equipment was purchased on July 1, 2017, at a
Schach [20]

Answer:

A gain of $16,100

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.

The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.

Carrying amount

= $22,000 - $6,600

= $15,400

Gain/(loss) on sale of asset

= $31,500 - $15,400

= $16,100

6 0
4 years ago
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