Answer:
b. 7.60 percent.
Explanation:
Dividend yield = expected return - dividend growth rate
- expected return = 13%
- dividend growth rate = 5.4%
dividend yield = 13% - 5.4% = 7.6%
Dividend yield is a financial metric that measures the rate of return that a stockholder receives every time a dividend is distributed. You can also calculate it by dividing dividends received by stock price.
Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
Answer:
The Beet Juice should be processed further
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the point of crush are irrelevant to the decision to process further </em>
Product Additional Rev. Further process cost. Net income(loss)
($)
Beet Fiber 40-27 =13 16 (3) See notes
Beet Juice 100- 43 = 57 28 29
The beet fiber should not be process further while the beet juice should be be processed further into refined sugar . Processing Beet Juice further will generate additional income of $29 per unit while Beet Fiber would generate a loss of $(3)
Notes
The net income(loss) is the difference between the additional revenue from further processing and the further processing cost. The Net income(loss) for the two products is computed as follows:
Beet Fiber =13- 16 = (3)
Beet Juice = 57 - 28 = 29
Of course it is it would be bad if something went wrong and the borrower had to repay it.