In economics rational behavior involves getting the most satsfaction from a choice and working within the given conditions.
Answer:
<em>15,101.15 shares</em>
Explanation:
<em>Northwestern Lumber products has =17,500 shares of stock</em>
<em>The Manager Patricia considers issuing $135,000 of debt, at an interest rate of 6.6%</em>
<em>Let us find how many shares of stock will be outstanding once the debt is issued,</em>
<em>Given that </em>
<em>$65,000/17,500 = ($65,000 − 135,000(.066))/X
</em>
<em>Then X = 15,101.15 shares</em>
Answer:
Inductive reasoning
Explanation:
This type of reasoning is considering generalization that is formed and based on some previous experiences and with that previous experiences the observation that is made is forming an inductive reasoning.
In this case, the person met many of them who says that their favorite pizza is pepperoni and then every time that someone say that they love pizza, this person will think of pepperoni pizza because of the previous experiences that caused those observations.
Answer: Price after 1 year = $24.83
Explanation:
Return = [D1/P0 ]+ g
= [(3*1.08)/23] + 0.08
= 22.09%
We assume the return is same for next year as well.
Thus,
r = [D2/P1] + g
22.09% = (3*1.082/P1) + 8%
P1 = $24.83
<u>Thus, price after 1 year is $24.83</u>
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