Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer:
The correct answer is c. Prospect theory.
Explanation:
Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.
Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.
Answer:
Hence the null hypothesis is not rejected.
We conclude that productivity objective (in dollars) is not better than $75,000 per employee.
Explanation:
Single sample t-test ( upper tail test)
N=20
Mean =75500
Sd=18968.117
DF= 20-1=19
Table value of t at 0.05 level of significance =1.7291
Calculated t=0.1179 < table value 1.7291
The null hypothesis is not rejected
We conclude that productivity objective (in dollars) is not better than $75,000 per employee
The marginal revenue product (MRP) of land declines as more land is brought into production because:
A. Land is a "unfastened and nonreproducible gift of nature."
B. Of diminishing returns.
C. Land hire has no incentive characteristic.
D. The deliver of land is constant
Marginal revenue product (MRP), also referred to as the marginal charge product, is the marginal revenue created due to an addition of 1 unit of useful useful resource. The marginal revenue product is calculated by way of way of multiplying the marginal physical product (MPP) of the useful aid by means of the marginal revenue (MR) generated.
How do you calculate marginal revenue product of labor?
The marginal sales manufactured from a worker is equal to the made from the marginal product of hard work (MPL) and the marginal sales (MR) of output, given with the aid of MR×MPL = MRPL.
What takes place to marginal revenue product whilst call for decreases?
Marginal revenue product sales will usually be less than call for for a given quantity. That is because of the reality a monopolist's call for curve is similar to its average income curve, and for a monopolist, every commonplace and marginal sales will decrease as amount increases.
Learn more about marginal revenue product here:- brainly.com/question/13444663
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Answer:
$4
Explanation:
Let T = number of two pound sugar bags
and F = number of five pound sugar bags
6T + 3F = 24
3T + 1F = 10
F = 10 - 3T
replace in first equation
6T + [3 x (10 - 3T)] = 24
6T + 30 - 9T = 24
6 = 3T
T = $2
F = 10 - (3 X $2) = $10 - $6 = $4
