Auctio sells sprockets in a perfectly competitive market. Below are its short-run total variable costs at different output level
1 answer:
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Answer:
A. 16.71%
Explanation:
Use dividend discount model (DDM) to solve this question.
Formula for finding the required return of a stock is;
r =
where P0 = Current price = $17.50
D1 = Next year's dividend = $3.45
r= required return = ?
g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)
r =
As a percentage , it becomes 16.71%
Answer:
A. Check attachment for proportion hypothesis test
B. Type I error is to conclude that less than 50% of adults in Suva have a will when actual probability is less than 0.5
Probability of type I error= significance level= 0.05
C. If type I error is zero, then we would not be able to reject the null hypothesis
