Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30
The balance of the price in the market is determined by demand and supply, which are measured in terms of the price and quantity variables; When a tax is placed on a product, a change in the market equilibrium is generated, since buyers pay more and sellers receive less.
Thus, a tax causes the supply curve to move up and the demand curve to move down.
In order to know how the tax burden is distributed, the incidence is measured through the elasticity of the supply and demand curve, which measures the sensitivity of the quantity, demanded or offered, of products before a price change.
When the supply curve is more elastic than the demand curve, the impact of the tax is stronger for consumers, as the prices paid by consumers increase more than the price that sellers receive decreases.
Answer
It can be concluded about the elasticity of demand and supply prices that <em>supply is more elastic than demand</em>
Answer:
1. Qatar
2. Macao SAR
3. Luxembourg
Explanation:
The 3 wealthiest countries in the world according to GDP (PPP) is Qatar - $134,623, Macao SAR - $122,201 and Luxembourg - $108,813
Answer:
Option (B) 5.5%
Explanation:
Data provided in the question :
Factor Risk premium
Factor 1 5%
Factor 2 3%
Beta of stock A on factor 1 = 1.4
Beta of stock A on factor 2 = 0.5
Expected return = 14%
Now,
Expected return
= Risk free rate + (Beta of factor 1 × Risk premium of factor 1) + (Beta of factor 2 × Risk premium of factor 2)
or
14% = Risk free rate + (1.4 × 5%) + (0.5 × 3%)
or
14% = Risk free rate + ( 7% + 1.5% )
or
Risk free rate = 5.5%
Hence,
Option (B) 5.5%
The popularity of a new type of jeans
hope this helps!
(:
