Answer:
The value of the stock today is $33.33
Explanation:
The constant growth model of the DDM approach will be used to calculate the value of this stock today.
The formula for Value of the stock today using the constant growth model is,
V or P0 = D1 / r - g
The Value of the stock today is,
V or P0 = 3 / (0.13 - 0.04)
V or P0 = $33.33
Answer:
competitors will follow a price cut but ignore a price increase.
Explanation:
The Kinked demand curve model of oligoplolist is based on the assumption that competitors will follow price cut but ignore a price increase because of interdependence among firms price is rigid in oligopoly market. When a firm raises the price of its products none of its competitors will follow the same whereas in case firm reduces its price its competitors will follow the same.
Thus, it is prudent behaviour on the part of a firm not to change in the prices of its products frequently. It is because this reaction of rival firms, the demand curve face by an oligopoly firm has a kink. The kink is formed at prevailing price level.
The portion of demand curve above the kink is more elastic implying, when oligopolist increase the price of its product none of its competitors will follow it with expectation to capture the market demand created due rise in prices by first firm.
The lower portion of the kink is relatively inelastic showing that in case an oligopolist reduces its price its rival firms will also reduce their prices with a view to not to lose their market demand. Thus, it will not beneficial for the oligopolist in either of the situations. Therefore, it will stick to the prevailing price.
Answer:
B. the percentage change in quantity demanded exactly offsets the percentage change in price
Explanation:
Unit elastic demand is an economic theory that assumes a change in price will cause an equal proportional change in quantity demanded.
It’s A , I think I could be wrong
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It is well recognized that using cyber security is important for e-commerce. Because cyber assaults may result in significant loss of income, data, and company viability, cyber security is crucial for e-commerce. Be aware that an increase in online crime may cause a crash. Therefore, I would say that, in the absence of regulations or information security standards pertaining to the data that makes up an e-commerce transaction, the Internet would not be as popular as it is now.
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