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Assoli18 [71]
3 years ago
7

Economic questions always deal with:

Business
1 answer:
Orlov [11]3 years ago
5 0

Answer:

D. choice in the face of limited resources.

Explanation:

Economic question always deal with the choice in the face of limited resources, since resources are limited and humans needs are unlimited. Resources are always limited, and economics deals with the choice to administrate the resources the best way possible.

When a person decides to assign a resource to a specific use, he is discarding its use for another purpose. This is known as the opportunity cost.

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Answer:

Price of stock- $26

Explanation:

<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>

Where a stock is expected  to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:

Price = D(1+g)/(ke-g)

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g - growth rate in dividend

So we can work out the price as follows:

Price = 1.25( 1+0.04)/(0.09-0.04)

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Price =$26

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Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

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