Explanation:
There are two alternatives
1. Sold for $6,300
The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500
2. Repair and after that sale it
Now in this case, we have to determine the benefit generated i.e come from
= Sale value - repairing cost
= $19,700 - $9,100
= $10,600
As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company
<em>According to the</em><em> strong version of efficient market theory,</em>
- <em>Instantaneously, </em><em>stock prices reflect both public and private information.</em>
- <em>There is</em><em> no advantage for insiders when choosing investments.</em>
<h3>
What exactly is the efficient market theory?</h3>
- Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all available information.
- According to the EMH, equities trade on exchanges at their fair market value.
- EMH proponents contend that investing in a low-cost, passive portfolio is advantageous for investors.
<h3>What significance does the efficient market hypothesis have?</h3>
The efficient market hypothesis adheres to liberal economic theory and has significant political ramifications. According to the efficient market hypothesis, stock prices are always traded at a "fair" market value, negating the necessity for any form of government involvement in the market.
learn more about efficient market theory here <u>brainly.com/question/14311423</u>
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Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
Answer:
<em>Theory of justice
</em>
Explanation:
A Justice Theory is a 1971 work of John Rawls ' political philosophy and ethics, whereby the writer addresses the problem of distributive justice.
The principle uses a revised sort of Kantian philosophy and a variant form of conventional theory of social contracts.
