Answer:
The correct answer is letter "A": Individuals tend to gamble more with their money when the future is uncertain.
Explanation:
Risk aversion in Finance describes an investor who is just willing to accept a small level of risk on his investments. A risk-averse investor likes less risk and is prepared to accept fewer returns because of his choice. In a few words, risk aversion represents the likelihood investors prefer to secure their investments instead of risking more expecting higher returns.
Thus, <em>individuals gambling more when the future is uncertain reflects an opposite scenario to risk aversion.</em>
Answer:
There is no change in consumers' or producers' well being
Explanation:
Currently consumers of vodka were levied tax of $2. However, government decided to provide tax relief to consumers and shift the burden on producer. There will be no change in the well being of consumers and producers.
Tax is a cost that shifts demand curve if consumers pay tax. Supply curve shifts if producers pay tax. The overall effect, however remains the same. If producers pay tax, cost per unit vodka will increase which will be reflected increased prices. Similarly, if consumers pay tax, they will demand lesser. so there is no change overall.
Answer:
The current market price per share is $14.82
Explanation:
The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.
The following is the formula for the price of the stock today,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + Terminal value
The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes zero, like in this case, the terminal value is calculated as follows,
Terminal value = Dividend / r
Where,
- r is the required rate of return
- Dividend is the dividend which will remain constant through out the future
So, the price of this stock today is,
P0 = 1.52 / (1+0.11) + 1.60 / (1+0.11)^2 + 1.62 / (1+0.11)^3 +
(1.65 / 0.11) / (1+0.11)^3
P0 = $14.82
The answer to this question is Direct Marketing. A Direct Marketing is a type or form of advertising / marketing of a product or service where the companies or businesses sent marketing materials or infomation directly to their prospective clients / consumers. Example of direct marketing is thru sending of emails, letters, catalogues, text messaging, and sending of fliers.
