Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per c
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Answer:
required return on the company's stock = 11%
Value of each share =$88.51
Explanation:
The constant growth model states that . If ke is made subject of formular,
.
This implies that ke= dividend yield plus growth rate = 6%+5%=11%. Therefore the required return on the company's stock = 11%
Values of each share = .
where
and P3=
Value of each share = = 88.51
The Marginal Utility per Dollar for the fourth unit consumed is 2.50 utils.
The Marginal Utility per Dollar for the second unit consumed is 9 utils.
Utility is the total satisfaction a consumer derives from consuming a good or service.
Marginal utility is the change in total utility when a consumer increases the unit consumer by one.
Marginal utility = change in total utility / change in price
<u><em>Marginal Utility per Dollar for the fourth unit consumed</em></u>
Marginal utility when the fourth unit is consumed = (64 - 54) / (4 - 3)
10 / 1 = 10.
Marginal utility per dollar = 10 / $4 = 2.50 utils
<u><em>Marginal Utility per Dollar for the second unit consumed </em></u>
Marginal utility of the second unit = (40 - 22) / (2 - 1) =
18 / 1 = 18
Marginal utility per dollar = 18 / $2 = 9 utils
Please find attached the table of the utility function. To learn more, please check: brainly.com/question/14850856?referrer=searchResults
