Answer:
(1) The price Elasticity of demand for Dormintory space will less than one.
(2) The room rates will increase following the increase in demand.
Explanation: The price Elasticity of demand is a term used in Economics to describe the change in Quantity demanded at the slightest change in price of the product or services rendered. FOR A NECESSARY AND ESSENTIAL GOODS AND SERVICES WITH NO CLOSE SUBSTITUTES LIKE THE DORMITORY SPACES THE PRICE ELASTICITY OF DEMAND WILL BE LESS THAN ONE.
THIS MEANS THAT A CHANGE IN PRICE WILL HAVE LITTLE OR NO EFFECT ON THE DEMAND.
One of the conditions necessary for a change in price is a change in demand, as the demand for a product or service increases, it will lead to a corresponding increase in the price of the product or service especially when the supply for the product or sevice is constant.
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
- rRf is the risk free rate
- rM is the return on market
r = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Before the approving signature is made on a check, the signer should verify that the DOCUMENTATION HAS PROPER APPROVAL. A person who sign check for approval should ensure that he sights the documentations with which the concerned transaction was made in order to verify that the transaction actually take place and that the correct amount of money is being charged.
Direct ownership is the strategic option for entering into the international marketplace which the US retailers have used abroad.
<h3>What is meant by direct ownership in strategic options?</h3>
This is the term that is used to tell us that a particular firm is owned by only one person or a single entity and that they have no partners in the market abroad.
This tells us that these United States companies that are abroad only have themselves as the ones operating the businesses. Hence we can say that Direct ownership is the strategic option for entering into the international marketplace which the US retailers have used abroad.
Raed more on strategic options here:
brainly.com/question/14332597
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