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Answer:
the stock value per share is $42.86
Explanation:
The computation of the stock value per share is shown below
But before that firm value is
= ($150,000,000) ÷ (12% - 5%)
= $2,142,857,142.86
Now the stock value per share is
= Firm value ÷ number of shares of stock outstanding
= $2,142,857,142.86 ÷ 50,000,000
= $42.86 per share
Hence, the stock value per share is $42.86
Answer:
As price elasticity of supply increase the supply curve will be closer to the horizontal axis thus shallower.
Explanation:
The price elasticity of supply can be defined as a measure of how much the price of a good or service changes with a corresponding change in the supply of that specific good or service. This means that a good or service can be described as either elastic or inelastic depending on how it's price and supply parameters behave. Inelastic goods are those goods whose price change with reference to their supply do not change much. These goods are sometimes referred to as essentials since people tend to buy them even if the prices are high. On the other hand, elastic goods are those ones whose price fluctuates depending on the supply. These goods are called luxuries, since people buy them only when their prices are low, and avoid them when the price rises.
The price elasticity of supply can be determined using the expression below;
E=%Q/%P
where;
E=elasticity of supply
%Q=percentage change in quantity supplied
%P=percentage change in the price for the corresponding changes in quantity supplied
The supply curve generally represents changes in price verses the changes in quantity supplied. The price is plotted on the left vertical axis, against a corresponding quantity supplied on the horizontal axis.
A product that has more price elasticity of supply will cause the supply curve to be shallower: closer to the horizontal axis. On the other hand a product with less elastic supply will make the supply curve to be steeper: closer to the vertical.
