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3 years ago

The price of a Honda Accord

Business

1 answer:

Sindrei [870]3 years ago

3 0

Answer:

d. is a nominal variable and the price of a Honda Accord divided by the price of a Honda Civic is a real variable.

Explanation:

In domain of economics, nominal varable are value that can be measured in terms of it's monetary value of the price that exist at that particular period of time. For instance blood type and genotype.

real value on the other hand is been measured based on goods/services, it's is the value even when inflation has set in.

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Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the

Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)% = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0

3 years ago

E20.5 (LO 3) (Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pe

GuDViN [60]

Solution and Explanation:

Computation of service years

Year Jim Paul Nancy Dave Kathy Total * Cost Amortization

2014 1 1 1 1 1 5 * 3000 15000

2015 1 1 1 1 1 5 * 3000 15000

2016 1 1 1 1 1 5 * 3000 15000

2017 1 1 1 1 4 * 3000 12000

2018 1 1 1 3 * 3000 9000

2019 1 1 2 * 3000 6000

72000

Future years of service

Jim 3

Paul 4

Nancy 5

Dave 6

Kathy 6

$cost per service year $=\$ 72000 / 24=\$ 3000$$

8 0

3 years ago

Consider the following events:

zalisa [80]

Answer:

A fruitworm infestation ruins a large number of apple orchards in Washington state.

Explanation:

The fruitworm infestation would reduce supply. The supply curve would shift to the left as a result.

I hope my answer helps you

4 0

3 years ago

Suppose Joe contracts with Marvin to frame out a shop at Joe's ranch for $10,000. During the framing Marvin discovers the costs

Marina CMI [18]

Answer:

unenforceable;

preexisting duty

Explanation:

Preexisting Duty Doctrine

This is simply regarded as when an individual is already under an obligation to do something. It simply states that the rules and guidelines under contract law that shows that if a party to a contract is under a pre-existing duty to perform, then no second thought (consideration) is taken for the modification of the contract. Modification is then voidable.

3 Types of Legal Duties

1. Public Legal Duties such ad the duty of a police officer to protect lives and properties.

2. Contractual Legal Duties such as unperformed, preexisting contractual promises etc.

3. Private Legal Duties such as the duty to follow the law.

Unenforceable Contracts

This is regarded as a contract that cannot be enforced/given consideration or effect by the court of law etc unless they are settled and corrected according to law.

Kinds of unenforceable contracts

1.) Those entered into in the name of another by one without, or acting in excess of rights or authority;

2.) Those that do not comply with the Statute of Frauds etc.

8 0

3 years ago

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their ope

Assoli18 [71]

Answer:

The correct answer is customer needs, interests, and tastes becoming increasingly homogenized.

Explanation:

As the economic recovery is consolidated, many organizations are taking stock of the strategy followed in terms of centralization / decentralization and begin to consider that it can be a good time to bet on decentralized management in areas such as human resources and human resources management. talent.

Decentralized management can be interpreted as a loss of control by the HR management, because it implies a greater degree of autonomy of the various work centers, by now making the zone managers decisions without involving the entire chain of command, as usual.

Thanks to the creation of guided processes, the highest levels of customization and adaptability to the specific needs of each organization can be achieved, so that the degree of independence and the variation of the chain of command are perfectly defined, under control and defined according to The problem of each organization.

5 0

3 years ago