Answer:
The correct answer is letter "A": Those who are unwilling or unable to pay for the good do not obtain its benefits.
Explanation:
The excludability feature of goods does not allow individuals to have access to them without having paid for them. Thus, non-excludable goods are those that no one cannot prevent its use. <em>Private goods</em> (clothing, vehicles, houses) are excludable but they are also considered rival goods since when one person uses it another individual cannot consume the goods.
Answer:
D) 356
Explanation:
ME = Z x √[(P x Q) / N]
- margin of error (ME) = 4%
- 90% confidence level (Z) = 1.645 (by convention)
- P = 70% of apples exceed Grade A
- Q = 30% of apples do not exceed Grade A
- N = sample size = ?
0.04 = 1.645 x √[(0.7 x 0.3) / N]
0.04 = 1.645 x √(0.21 / N)
0.04 = 1.645 x 0.458 / √N
0.04 = 0.7538 / √N
√N = 0.7538 / 0.04 = 18.84
N = 18.84² = 355.2 ≈ 356 (there is no 0.2 apples, you must round up)
Answer:
22.22%
Explanation:
Currently Rainbow's stocks are priced at $36 per stock.
If the holder can convert his $1,100 bond into 25 stocks, that means that each stock should be worth at least $44 (= $1,100 / 25).
So the current stock price should increase by $8 (= $44 - $36) in order for a trade to be attractive, $8 represents a 22.22% increase (= ($8 / $36) x 100)
Answer:
Dividend yield = 5.54%
The expected capital gains yield = 6%
Explanation:
Next Dividend (D1) = $1.44
Growth rate (g) = 6%
Required return (Ke) = 6% + 5.54% = 11.54%
Ke-g = 11.54% - 6% = 5.54%
Price = D1 / (ke / g) = 1.44 / 5.54% = $25.9927 = $26
a. Dividend yield = D1 / Price = $1.44 / $26
Dividend yield = 0.05538
Dividend yield = 0.0554
Dividend yield = 5.54%
b. The expected capital gains yield = Required return (Ke) - Dividend yield
The expected capital gains yield = 11.54% - 5.54%
The expected capital gains yield = 6%
I would invest in building my own house. This is appealing to me because I want to raise a family in a nice house that I have built.
