Answer:Cross Elasticity of Demand = 0.56
Explanation:
Cross Elasticity of Demand = Percentage change in quantity demanded/Percentage change in price .
Using the midpoint formulae
Percentage change in quantity of UPS=Q2 - Q1/ Q2+Q1/2
=1,300,000 - 1,200,000/(1,300,000 + 1,200,000)/2=0.1/1.25 =0.08
Percentage change in Price of FedEx = P2 -P1/ (P1+P2)/2
=75-65/(75+65)/2=10/70=0.1428
Cross Elasticity of Demand = Percentage change in quantity demanded/Percentage change in price .
=0.08/0.1428 = 0.56
Here the cross elasticity of demand is positive, which trells us that FedEx and UPS are substitute goods.
Answer:
Price per share = $78.75
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
<em>Note Do (1+g) represents the expected dividend in the first year</em>
DATA:
Do (1+g) = 3.15
g= 8%
k= 12%
Price per share = 3.15/(0.12- 0.08) = $78.75
Price per share = $78.75
Answer:
$151.72
Explanation:
Quarterly dividends of preferred stock = $2.75
Annual dividend of preferred stock = 4 * Quarterly dividend
Annual dividend of preferred stock = 4 * $2.75
Annual dividend of preferred stock = $11
Required return = 7.25% = 0.0725
Return = Dividend / Current price
0.0725 = $11 / Current price
Current price = $11 / 0.0725
Current price = 151.724138
Current price = $151.72
So, the preferred stock should sell for $151.72.
Answer:
In France:
Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season
In Mali:
Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.
(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.
(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.
(3) Opportunity cost of dates in France =
= 2 grain
Opportunity cost of dates in Mali = 
= 0.4 grain
Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.
(4) Opportunity cost of grain in France =
= 0.5 dates
Opportunity cost of grain in Mali =
= 2.5 dates
Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.
<u>Answer:</u> They can best be classified as structurally unemployed.
<u>Explanation:</u>
Unemployment which has resulted because of the change in technology that is implemented in a business can be called as the structural unemployment. The skills demanded by the employers differs from the skills offered by the workers.
The casual dining has replaced the employees with tablets which is cost beneficial for the business. The employees who have lost their jobs due to technological change at workplace is called as structural unemployment. Here the casual dining is said to have industrial reorganization for various benefits.