The discovery of natural gas in the American Midwest should lead to an <u>increase</u> in the price of land because of an <u>increase in </u><u>demand</u> for the land.
The law of demand and supply explains how demand and supply are related to each other and how that relationship affects the price of goods and services. As the law explains that when demand for a product increases, and when supply is limited, so in this situation prices tend to rise.
Here, by the discovery of natural gas in the American Midwest, the prices of the land increased, this happened because of an increase in demand for the land. So when demand increased the price also increased.
Hence, the relationship between demand and supply is it important.
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Answer:
$45,600
Explanation:
Only cash entries are reported into the cash flow report.
Thus we only report $45,600 cash into “Sale of assets” of investing activities.
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Answer:
Ans. The current price of the stock is $135.13
Explanation:
Hi, first, we need to find the price of the stock in year 9, since in year 10 is when the company starts to pay dividends. I know it could sound weird, but due the nature of the following formula, all future cash flows are brought 1 period before the first payment, in our case, if the first dividend is going to be paid in year 10, all the future cash flows of the share (future dividends) are going to be brought to year 9. The formula as follows.
Things should look like this
So the present Value (in year 9) is $228.31, but we need it in the present, therefore, we have to use another formula to bring this value to present value, given the required rate of return.
Where:
Return: The required rate of return (discount rate)
n: number of years from zero.
Everything shold look like this.
So the current price of this stock is $135.13.
Best of luck.
Answer:
Course Description
Explanation:
Career Research and Decision Making is a lifelong process that includes, exploring, choosing and implementing decisions about education, occupation, and related life roles. Students will develop knowledge and skills that will help them to manage their career throughout lif
