Answer:
The best next step that the investor should take regarding Praetorianʹs stock is C. Revise her estimate of Praetorian's Dividend Growth
Explanation:
Consider the following calculations
Price = D (1+g)/ (r-g) = 2.5*(1.05)/(0.08-0.05) = $ 87.5
Hence, the stock is underpriced at $ 84 per share
.
Answer:
The correct answer is <em>International Trade</em>.
Explanation:
Specialization in economics is not limited to individuals and firms, the soul of microeconomics. It also has applications in macroeconomics, which studies the economic actions of nations, regions and entire economies. In a macroeconomic context, specialization means that nations concentrate on the production of goods in which they have the greatest advantage while making trade contracts with other countries to obtain other goods.
David Ricardo, another classic economist of the 18th century and the beginning of the 19th century, discussed the specialization based on comparative advantages that help determine if it is of greater benefit to manufacture a product in the country or import it. It assumes, for example, that the United States produces clothes and computers cheaper than India. While the United States apparently would have an absolute advantage, it would not have a comparative advantage, which measures the ability to produce in terms of opportunity cost. Because production resources are limited, opportunity costs to produce computers mean that less clothing is manufactured. Compared to what has been sacrificed, the country should specialize in producing goods over which it has a comparative advantage while importing the other product
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Answer:
Explanation: If a court had to construe a contract between Wire Co and a copper company based on industry practice. Means that A legal document that will state the entire business operation would have to be drawn down before any business transaction commences between the parties.
Profit margin is 25%
Given net income is $10,000 and sales is $40,000.
Cost = Sales - net income
=$40,000-$10,000
=$30,000
Profit margin to be computed.
Profit margin measures how much the money a firm or the business activity produces by dividing income by the revenues. Profit margin, given as a percentage, is basically the number of cents earned for every dollar of the sales.
Profit margin is computed with the formula given below:
Profit margin= Revenue-Cost / Revenue
= $40,000- $30,0000/ $40,000
= 0.25
=25%
Therefore, the correct option of the profit margin is c. 25%.
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