Answer: How does a supply shock affect equilibrium price and quantity?
A. Raises prices and decreases quantity demanded
Explanation: The prices raise as there is a decrease in quantity demanded to make up for the loss of sales. This typically happens when the product or service is not meeting the consumers needs anymore, so the goods or services are not being sold and consumed.
Answer:
The intrinsic value per share is $33.92
Statement A is true about the constant growth model.
A. The constant growth model can be used if a stock's expected constant growth rate is less than its required return
Explanation:
The fair value or the intrinsic value per share of a stock whose dividends grow by a constant rate forever can be calculated using the constant growth model of dividend discount model approach. This model values a stock based on the present value of the expected future dividends from the stock. The fair value today under this model is calculated as follows,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend for the next period or D1
- r is the required rate of return
- g is the constant growth rate
P0 = 2.88 * (1+0.06) / (0.15 - 0.06)
P0 = $33.92
The constant growth model can only be used when the sustainable or constant growth rate is less than the required rate of return because a growth rate which is higher than the required rate of return will provide a negative share price and the prices for shares can never be negative. Thus statement A is correct.
John is a customer service employee at a small
bakery. He notices a customer deliberating the chocolate chip
or sugar cookies. In his head, John hears his boss, "I trust your
judgment; do what it takes to delight the
customer." With that in mind, John offers the customer a sample of each
cookie. John's boss uses empowerment as a motivational tool. (empowerment)
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Answer:
People-oriented
Explanation:
In the people-oriented, the company want to share something or the employees wants to share something and in this the employees are treated a a friends. Here all can be happy, smilling. Moreover, the work can be done in a fun way, everyone love their job and every employee treated by the organization is same
so as per the given situation, it is a people-oriented
The answer is D the answer depends on the interest rate which is not mentioned so there is not enough info