Microsoft working with Best Buy to open stores-within-a-store at numerous Best Buy locations is an example of a smaller specialt
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Answer:
The correct answer is option C.
Explanation:
Italy and Sweden both produce jeans and stained glass.
Italy's opportunity cost of producing a pane of stained glass
= 4 pairs of jeans
Sweden's opportunity cost of producing a pane of stained glass
= 10 pairs of jeans
Since Italy has a lower opportunity cost of producing glass, so we can say that it has a comparative advantage in the production of glass.
Italy's opportunity cost of producing a pair of jeans
=
= 0.25
Sweden's opportunity cost of producing a pair of jeans
=
= 0.1
Sweden has a lower opportunity cost in the production of jeans, so it has a comparative advantage in the production of jeans.
So, Italy will produce and export glass and Sweden will produce and export jeans.
Both the countries will gain from trade if the trade price lies between their opportunity cost.
So the trade price will be 8 pairs of jeans per pane of stained glass.
Answer:
$16.74
Explanation:
First , find the dividend per year;
D1 = 2.10(1.0.24) = 2.1504
D2 = 2.1504(1.024) = 2.2020
D3 = 2.2020(1.024) = 2.2548
D4 = 2.2548(1.024) = 2.3089
D5 = 2.3089(1.024) = 2.3643
D6 = 2.3643(1.02) = 2.4116
Next, find the present value of the dividends;
PV (of D1) = 2.1504/ 1.15 = 1.8699
PV (of D2) = 2.2020/ 1.15² = 1.6650
PV (of D3) = 2.2548/ 1.15³ = 1.4826
PV (of D4) = 2.3089/ (1.15^4) = 1.3201
PV (of D5) = 2.3643/ (1.15^5) = 1.1755
PV (of D6 onwards)
PV (of D6 onwards) = 9.2228
Next, sum up the PVs to find the price of the stock;
= 1.8699 + 1.6650 + 1.4826 + 1.3201 + 1.1755 + 9.2228
= 16.7359
Therefore the value of one share is $16.74