Answer:
Option C is the correct option.
Explanation:
As the rights and obligation of the antique rocking chair are been passed to third party, so the damage caused by the checque been bounced is the monetry consideration agreed between the party to the contract, McGraw and Tellis. So Tellis may recover money damages from McGraw. However there is a special condition that can allow Tellis recover his asset from Rio if the third party knew before purchase of this asset, that the checque paid to Tellis by McGraw was dishonoured but still he contracted with McGraw to acquire the antique rocking chair.
Overall the option C is the correct option with which the case scenario relates.
Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%
Answer:
b. Demand is unit elastic, and a decrease in price causes an increase in revenue
Explanation:
According tothe revenue theory in economics
when the demand is inelastic the relationship within price and total revenue is direct. either both increases or decreases
when the demand is elastin this relationship is inverve, teh increase in price generates a decrease in total revenue
while their decrease an increase.
But, if the demand is unit elastic then, there is no variation at all
According to this theory, option B is impossible.
