Answer:
$13.06
Explanation:
Data provided in the question
Expected dividend pay every year = $1.10
And the equity cost of capital is 8.4%
So, the price expected to pay per share ten years in future is
= Expected dividend pay every year ÷ the equity cost of capital
= $1.10 ÷ 8.4%
= $13.06
By dividing the expected dividend by the equity cost of capital we can get the price
Answer: c.) hire less labor and rent more capital
Explanation:
To answer this we would need to find out the Marginal cost per dollar of producing with either form of production being labour or capital.
The Marginal Product of Labour is 20 units resulting from $4 dollars so that means that for every dollar spent on Labour we get,
= 20/4
= 5 units of output.
However, The Marginal Product of renting Capital is 30 units resulting from $5 dollars so that means that for every dollar spent on Capital we get,
= 30/5
= 6 units of output.
This means that renting Capital is more efficient because we get 1 more unit of output per dollar and so to minimize cost of production without changing the level of output, the firm should hire less labor and rent more capital.
Answer: D. Moral codes and social sanctions
B. coordinating negotiations among all of the parties too costly.
Explanation:
Externality is when the action of a person affects others either in a positive or negative way.
The types of private solutions to the externality of littering that has occurred in this case is moral codes and social sanctions. In this case, Megan doesn't really think that what she wants to do is wrong but she is concerned with how littering would affect her neighbor.
We should note that private solutions to externalities do not work when coordinating negotiations among all of the parties too costly.
Answer:
$1618.62
Explanation:
The formula for calculating future value :
FV = P (1 + r/m)^nm
FV = Future value
P = Present value
R = interest rate
N = number of years
M = number of compounding = 12
$1,200(1 + 0.06 / 12 )^60 = $1618.62
I hope my answer helps you
Answer: 2.5 years
Explanation:
The payback period of a project as the term implies, is the amount of time it takes for a project's cashflows to pay off its original outlay.
The formula is;
= Year before payback + Amount remaining/ Cashflow in year of Payback
Year 1 + 2 = 150 + 200 = $350
Amount remaining = 500 - 350 = $150
Payback period = 2 + 150/300
= 2.5 years