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MissTica
3 years ago
8

1. Acme Company just had a very successful IPO. Initial shares sold at a price far above their realistic value. The “buzz” on th

e streets is that this is a very promising stock. Demand for the stock is high and rising. Is the price of Acme Company's stock likely to rise or fall? Explain your prediction.
Business
1 answer:
Korolek [52]3 years ago
7 0
The price of Acme Company's stock will likely RISE.

There is a limited number of stocks available and because the demand for the stock is high and rising, the company needs to increase its price. The increase is price will make it more valuable to potential buyers and it will serve as deterrent to those who can't afford to buy the stock at its high price. 

In short: supply is low, demand is high, resulting to an increase in price.
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Answer: 8%

Explanation:

The Annual Percentage Rate or APR for short is calculated by dividing the finance cost by the total amount borrowed in the following manner,

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To calculate the Finance charge we add the interest and the service charge.

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Back to the APR formula we will have,

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3 years ago
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Answer:

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