Answer:
Present value of the security = $1,888.89
Explanation:
The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:
where r =interest rate per annum that would be compounded for each year
Therefore, present value of the security =
= $1,888.89
Answer:
C) limited; unlimited
Explanation:
Economics can be described as the study of how people use limited resources to satisfy unlimited wants.
The pricing objective of a firm that adjusts price levels so it can increase sales volume to match organizational expenses is survival.
Answer:
<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>
Explanation:
The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.
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