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scoray [572]
3 years ago
11

The phrase gains from trade refers to the: increase in total output that is realized when individuals specialize in particular t

asks and trade with each other. profits obtained from sales of a good or service. gains that one obtained by taking advantage of an uninformed buyer and selling at a higher than average price. gains that one obtains by taking advantage of a temporary discount, or sale price.
Business
1 answer:
Nana76 [90]3 years ago
7 0

Answer:

increase in total output that is realized when individuals specialize in particular tasks and trade with each other.

Explanation:

gains from trade in economics can be regarded as net benefits that an

economic agents derived as a result of of voluntary trading between the agents, it can be also regarded as high change in lower tariffs of consumer and producer surplus. It should be noted The phrase gains from trade refers to increase in total output that is realized when individuals specialize in particular tasks and trade with each other.

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra
Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

Ke= r_f + \beta (r_m-r_f)  

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

Ke= 0.085 + 1.3 (0.045)  

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

\frac{Principal}{(1 + rate)^{time} } = PV

\frac{3.444}{(1 + 0.1435)^{1} } = PV

3.011805859

\frac{4.23612}{(1 + 0.1435)^{2} } = PV

3.239633762

\frac{61.6686857}{(1 + 0.1435)^{2}} = PV

47.16201531

We add them and get the value of the stock:

53.413455

5 0
3 years ago
24. Armin is trying to decide whether to buy a season pass to his college basketball team’s 20 home games this season. The cost
aksik [14]

Answer:

13 Home games

Explanation:

A season pass cost for home games =$175

Individual ticket per game    =$14

For season pass to be less than  total home game tickets  

i.e $175 must be than ($14 X Homegames )  

i.e 175 = 14XHG

    HG=   175/14=12.5 Approx. 13 games

    Total cost of 13 games is ($13X14)=$182. {$175 is less that $182}

Ardim must attend 13 games.

8 0
3 years ago
The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
Digiron [165]

Answer:

a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

Explanation:

To calculate the rate of inflation/deflation, we have to divide by the oldest price index.

The second year, the variation of the price index was:

\Delta PI/PI=\frac{PI_2-PI_1}{PI_1}=\frac{100-110}{110}=\frac{-10}{110}=-0.909=-9.1\%

This means a 9.1% deflation.

The third year, the variation of the price index was:

\Delta PI/PI=\frac{PI_3-PI_2}{PI_2}=\frac{96-100}{100}=\frac{-4}{100}=-0.04=-4\%

This means a 4% deflation.

8 0
3 years ago
Which of the following is not a key component of the merger model we walked through in the course?
Bas_tet [7]

Answer:

Gathering publicly available comparable company information

Creating detailed forecasts for both companies

An accretion/dilution and sensitivity analysis

Determining and calculating items related to the acquisition structure

6 0
2 years ago
Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of
Naddik [55]

Answer:

The correct option which would not be an expected response from decrease in price level is A) with fall in prices, Fargo concrete company has decided to let go workers who have fixed price contracts.

Explanation:

All the options except A are expected response from the fall in price and helps in explaining why the aggregate demand curve shifted ( towards the right ) . In the option B , Tyler decided to remodel his kitchen because of fall in prices, as now he is able to spend more on consumption and investment activities. Same thing is happening in option C and D as the company's here are increasing their investment spending due to the decreased prices.

But the option A , isn't something that was expected as company's don't usually fire their workers just because they have fixed price wage contract and prices have fallen, company is trying to take advantage of fallen prices by  reducing the fixed wage workers and hiring new workers on a cheap wage , which help in reducing the company's cost.

6 0
3 years ago
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