Answer:
The gene that causes color blindness is linked to the X chromosome and it is much more frequent in males than females because females have two X chromosomes. So for a female to suffer from color blindness, both of her X chromosomes should carry the genetic disorder.
Answer:
The price of the stock today is $3.49. The right answer is A.
Explanation:
In order to calculate the price of the stock today, we need to calculate first Value after year 5 with the following formula:
Value after year 5=(D5*Growth Rate)/(Required return-Growth Rate)
To find D5 we need to make the following calculations:
IF D1=0.3
, hence D2=(0.3*1.1)=0.33
, D3=(0.33*1.1)=0.363
, D4=(0.363*1.1)=0.3993 and D5=(0.3993*1.1)=0.43923
Therefore, Value after year 5=(0.43923*1.05)/(0.15-0.05)
=$4.611915
Therefore, now we can calculate the the price of the stock today with the following formula:
current price=Future dividends and value*Present value of discounting factor(rate%,time period)
=0.3/1.15+0.33/1.15^2+0.363/1.15^3+0.3993/1.15^4+0.43923/1.15^5+$4.611915/1.15^5
=$3.49
Answer:
The required rate of return is 12.2%
Explanation:
Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.
Formula to calculate the price
Price = Dividend / ( Required rate of return - Growth rate )
P = D / ( r - g)
P = $11.54
D = $0.95
g = 4%
Now placing the given values in the formula
$11.54 = $0.95 / ( r - 4% )
r - 4% = $0.95 / $11.54
r - 4% = 8.2%
r = 8.2% + 4%
r = 12.2%
Answer:
a. have performance attributes that are difficult to ascertain at the moment of purchase
Explanation:
In case of an experience good, it is difficult to make predictions regarding its price and quality.
The reputation of a seller and word of mouth are the important things that customers can use to make decisions regarding purchasing of the product.
Experience goods are those which have performance attributes that are difficult to ascertain at the moment of purchase
Answer:
The correct answer is letter "A": Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton.
Explanation:
Perfect Competition is a market where competition is at the highest degree possible. Perfect competitive markets have the following characteristics:
- <em>All companies sell the same goods or services. </em>
- <em>All companies are price takers. </em>
- <em>All firms have relatively small market shares. </em>
- <em>Buyers have full product and price information. </em>
- <em>The industry is characterized by low or no barriers to entry and exit of the industry.</em>
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Thus, <em>in Mary Beth's case, she cannot ask for a different price than the one of the market because in a perfectly competitive market it is controlled by supply and demand. Companies cannot set the price.</em>
