Answer: Diminishing marginal utility.
Explanation: The demand curve tends to slopes downward because of diminishing marginal utility and it also slopes downwards because of the substitution and income effects.
Barcelona demands a certain level of quality and the organization is continuously raising the bar on expectations. The individual that would be best fit for working at Barcelona is the person with Strong Type B personality
Answer: Option (d) is correct
Explanation:
Type B personality people are fit for working in Barcelona. They are the ones who are stress- free. They have control over their emotions. They are mostly relaxed and not at all aggressive.
They can comfortably express them without any kind of hesitation. They possess patience which is of utmost importance in any field. Their flexible nature enables them to adapt to changes quickly. They are highly motivated but have laid back attitude.
Answer:
involve an immediate cash outlay in order to obtain a future return
require a great deal of analysis prior to acceptance
Explanation:
A capital budgeting decision refers to an investment and the financial commitement. If we considered a project so here the business is making the financial commitment and at the same time it invest in the longer period that have an influence on the future projects
So it is an instant cash outflow for gaining a future return and also have a great deal before accepting it
Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
Answer:
$28.125
Explanation:
Dividend D1= $2
(Dividend is given at the end of 1 year)
Growth g= 4% or 0.04
Required Return r = 12% or 0.12
Step1- Share price of company A today
As per Dividend Growth Model
Share price =Expected dividend/(required return - growth rate)
S0 = Do(1+g) / (r-g)
S0 = D1/(r-g)
S0 = 2/(0.12-0.04)
S0 = $25
Therefore share price of company A today for given details will be $25
Step2 - Expected dividend at the end of 3 years
D4=D0(1+g)^4
( as we already have D1 which is one time growth multiplied, therefore to find dividend at the end of 3rd year we will multiply 1 Less growth multiplier to D1)
D4= D1(1+g)^3
D4 = 2(1+0.04)^3
D4 = $2.25
Step3 - Share price of company A in 3 year
Share price =Expected dividend/(required return - growth rate)
S3 = D4/(r-g)
S3 = 2.25/(0.12-0.04)
S3 = $28.125
Therefore share price of company A in 3 years for given details will be $28.125
