Answer:
A. The market clearing price of the tickets is more than $480.
Explanation:
Market-clearing price is a level where the quantity demanded of a product matches or the quantity supplied. At this price, A product or service does not experience any surplus or shortages. It is the price where the demand curve and the supply curve intersect. The market-clearing price is the same as the equilibrium price.
As the price of $480, the demand for the show is at 6000, but supply is at 4000. There is a surplus in demand. The price of $480 is attractive to more people than supply can handle. Matching supply and demand would require the price to be set above the $480.
Answer:
The value of a right is $1
Explanation:
10 rights are needed to buy 1 share at the price of $19
Value of total rights = $29 - $19 =$10
Value of a right = 
= $1
Answer:
The correct answers are letters "A", "B", and "C".
Explanation:
Corporate bonds are securities that firm issues to be sold to investors to raise funds that will be using to keep the company up and running. Investors profit from the interest rate dealt in the bond agreement or sometimes they obtain physical assets of the organization as collateral. If in the <em>secondary market bonds</em> are issued at a premium, the premium can be amortized or applied to the bond base but if the bonds were issued at a discount, <em>discount bond rules</em> take into place. The <em>interest payment received</em> thanks to the bonds are recorded in the gross income.
Additionally i would calculate it first and then divide it :) and don't forget to use pi
Answer:
The DAP Company
Current price per share:
Current price = Current Dividend (D0) / (WACC - Growth Rate)
= $2/ (0.10 - 0.06) = $50
Explanation:
The technique used to value the share price is called the Dividend Discount Model (DDM). The Myron Gordon model of this DDM is popularly used.
This model states that the current price of a share is the Current Dividend (D0) divided the difference between the cost of capital and the growth rate.
The result is the intrinsic value of the stock. The model assumes that dividends are paid in perpetuity and that the growth rate is constant over many years.
These remain assumptions as the real life offers quite different scenarios. There is no company that pays dividend every year in perpetuity. A company's growth rate is never constant year on year.
