The country that is being described in the statement given
above is Hong Kong as they are considered as a newly industrializing country in
which they have the capabilities of competing in regards with electronics and
to specialize in the category of trade and banking.
The answer is savings account A.
Since savings account A compounds the interest quarterly it adds interest to the account every quarter. This makes it a more profitable account than one that compounds the interest semiannually. The reason is that the bank is adding interest more frequently, so you are earning interest on the interest that the bank has already paid you.
Answer:
The rate of return on the stock can be best guessed to be 5%
Explanation:
Beta = 1.1
expected rate of return = 16%
But return = 10%
1.1 x 10%
= 11%
The updated expectation for the stock return is
= 16% − 11%
= 5%.
Therefore The rate of return on the stock can be best guessed to be 5%
Pure competition or perfect competition is where all firms have full knowledge of what is going on in the market, where there is free flow of information between not only the producers, but also with the consumers.
As such, all firms have no dominant share of market power since each individual firm is able to produce the good of the same quality and quantity (factors of production are fluid, and no costs in transportation in this theory). And at the same time, consumers have full knowledge of the quality of good they are getting and hence no firm will be able to exploit the misinformation of a good for its own profits.
This builds up to the point of a perfectly elastic demand curve, where consumers know what amount and at which price point do they value the product at. And knowing for the fact that small individual firms in a purely competitive firm have no say over prices, they become the price takers for this kind of market. Thus where MB=MC, the equilibrium point is reached and it is also at the socially optimal level since all consumers have full knowledge of the pros and cons of consuming a product (hence no externalities).
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Answer:
a) 2.40 dollars
b) 0.60 dollars
c) 2.40 dollars
Explanation:
$30 dollars x 8% = $2.40
quarterly dividend:_ $2.40 / 4 = $ 0.60
When the dividends ar cummulative, they will keep at arrear until the company declares cash dividend. The firm will not be able to pay common stock unless there are no arrear dividends to preferred stock.
Only once all the preferred dividends in arrear and current period dividends are paid, the ocvmany can distribute among their common stock.
