Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.
Answer:
There are limited number of large buyers, often geographically
Explanation:
Answer:
Stock Y has overvalued and Stock Z as undervalued
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock Y
= 4.85% + 1.40 × 7.35%
= 4.85% + 10.29%
= 15.14%
For Stock Z
= 4.85% + 0.85 × 7.35%
= 4.85% + 6.2475%
= 11.0975%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer
As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued
Answer: B. The industry which they operate
Explanation:Different companies carry out the functions of purchasing, procurement and supply differently and these depend on how they operate. For example supply chain in a manufacturing company, it will produce items that will be stored in warehouses and other locations, making the supply chain more complex, on the other hand if it's a Service Provider company which uses a make-to-order business model, there will be no need for storing finished products, Therefore, it is clear that supply chains including procurement , purchasing and supply depend on the nature of the company.
Answer:
YTM = 12.66%
Explanation:
FV = ¥100,000
PV = 0.87 x ¥100,000
PV= ¥87,000
Coupon payment = 4.3% x ¥100,000
Coupon payment = ¥4300 per year
N = 18 years
YTM = ?
We would simply plug these values into a financial calculator
https://www.calculator.net/finance-calculator.html?ctype=returnrate&ctargetamountv=1000000&cyearsv=18&cstartingprinciplev=87000&cinterestratev=6&ccontributeamountv=4300&ciadditionat1=end&printit=0&x=0&y=0
YTM = 12.66%
