Answer:
Excess supply
Explanation:
Demand is the quantity required or requested by buyers while supply is the quantity of a good that a producer is able to supply to the buyer.
When demand is equal to supply there is equilibrium and no excess in demand or supply.
However when the amount supplied exceeds the demand for a product there will be excess product in the market. This is called excess supply.
Conversely when the quantity demanded is more than that supplied it is excess demand
Financial, operational, perimeter, and strategic risks.
Like costs, labor, and weather.
Answer:
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300
Explanation:
currently Blue Ridge's costs are:
variable costs = $69,000
fixed costs = $69,000
total $138,000
total cost per unit = $138,000 / 45,000 units = $3.0667 per unit
if Blue Ridge decide to outsource the production of the parts:
variable costs = 45,000 x $4 = $180,000
decrease in fixed costs = $69,000 x -30% = -$20,700
total costs = $159,300
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300
Answer:
Market price: 28.90
Explanation:
We will calculate the stock price using the gordon dividend grow model:
D1 = 1.25
grow = g = 6% = 6/100 = 0.06
return= for the return, based on the information give, we will calculate it using the CAPM model:
risk free = 0.04
premium market=(market rate - risk free)= 0.055
beta(non diversifiable risk)= 1.15
Ke =cost of capital = return in the dividend grow formula = 0.10325
Now, we calculate the stock price:
Stock: 28.9017341
Market price: 28.90
