An incentive that interest groups engage in to overcome the free rider problem is packaging a selective incentive, <span>a private good available to members only, with public goods produced by the interest </span>group. This type of packaging is also used by American Association of Retired Persons or ARRP and other interest groups.<span> </span>
The price should you be willing to pay for this stock is $24.86
<h3>Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?</h3>
A) $12.50.
B) $24.86.
C) $43.48.
D) $57.50.
Solution:
The price that will be paid for this stock can be calculated as follows:
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Thus, the price that will be paid for the stock is $24.86
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Answer:
The correct answer is letter "C": value of the best alternative not chosen
Explanation:
Opportunity costs represent the return of the option chosen compared to the options that were forgone. <em>It can also be described as the return of the next best available option after having selected one</em>. Opportunity costs help individuals to find out what they "left on the table" after taking a certain decision.
<span>The information you obtained from this source is considered to be On deep Bakcground.
Deep background refers to the information that could not be displayed in the writing but definitely enchance the journalist's view regarding the relevant information. Journalists use this in order to connect a certain clues or find a new lead for their investigation.</span>
