Answer: a. No, it is not a good buy because the stock is worth $30.56
Explanation:
Using the Gordon Growth model, the value of the stock is;
Value = Next Dividend / ( Required return - growth rate)
= 2.75 / (18% - 9%)
= $30.56
<em>The stock is worth $30.56 yet it is selling for $37.35. It is therefore overvalued and not a good buy. </em>
Answer:
Planner
Explanation:
I am not 100% sure. But I think I'm close.
Sorry anyways.
Answer:
A
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
To determine which country has a better technology in production, the opportunity cost has to be calculated. The country with the lower opportunity cost has the better technology
At point B for North Cantina:
The opportunity cost of producing one 4 units of capital good = 10/4 = 2.5 units of consumer goods
The opportunity cost of producing 10 units of consumer good = 4/10 = 0.4 units of capital goods
At point B for South Cantina
The opportunity cost of producing one 4 units of capital good = 8/4 = 2units of consumer goods
The opportunity cost of producing 8 units of consumer good = 4/8 = 0.5 units of capital goods
South Cantina has a lower opportunity cost in the production of capital goods while North Cantina has a lower opportunity cost in the production of consumer goods
I think the answer to your question is Mathematical/Logical.
Answer:
The correct answer is: D. The supply increases more than the demand increases.
Explanation:
The law of supply and demand is the basic principle on which a market economy is based. This principle reflects the relationship between the demand for a product and the quantity offered of that product taking into account the price at which Sell the product.
Thus, depending on the price in the market of a good, the bidders are willing to manufacture a certain number of that good. Like the plaintiffs they are willing to buy a certain number of that good, depending on the price. The point where there is a balance because the plaintiffs are willing to buy the same units that the bidders want to manufacture, for the same price, is called the market equilibrium or breakeven point.
According to this theory, the law of demand states that, keeping everything else constant, the quantity demanded of a good decreases when the price of that good increases. On the other hand, the law of supply indicates that, keeping everything else constant, the quantity offered of a good increases when its price does.