Answer: A positive externality, negative externality and asymmetric information
Explanation:
A market failure is one of the type of economical situation in which the the various types of products and the services are distributions in an inefficient manner.
A positive externality, negative externality and an asymmetric information are the market failure that the government wants to change by the process of intervention
Externality is one of the type of advantage or cost that basically affect the third party in the economics so the free market under consuming the various types of products. Therefore, the given answer is correct.
Answer:
the return on common shares is 6.99%
Explanation:
The computation of the return on common shares is shown below:
= Dividend ÷ Stock price + growth rate
= $1.25 ÷ $27.22 + 2.4%
= 6.99%
hence, the return on common shares is 6.99%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The answer will be A
Explanation:
As the social security contributions and benefits remain the same in proportion, personal and national income will remain the same.
As disposable income is defined as personal income-personal taxes, and the personal income taxes fall by 500 million (included in the contibutions), this would mean that the disposable income increases.
Answer: The answer is $1,092,865.5426
To the nearest whole dollar, we have:
$1,092,866
Explanation: from the question above, we will be calculating the present value of a cashflow of $93,000 over a period of 20 years, at a rate of 5.76%.
We will be performing a discounting operation.
Refer to the attached files below to see the calculations and how we arrived at the answer above.
Answer:
The stock's new expected rate of return is 14%
Explanation:
Ke=Rf+beta(Mrp-Rf)
Ke is the cost of capital is 10.20%
Rf i the risk free rate which is unknown
beta is 1.00
(Mrp-Rf) is the market risk premium at 6%
10.20%=Rf+1.0(6%)
10.20%=Rf+6.0%
Rf=10.20-6.00%
Rf=4.20%
Beta for the risky asset is 1.00*130%=1.3
New risk rate is the old rate plus inflation rate of 2.00%
new risk free=4.2%+2%=6.2%
The expected return on the new asset is computed thus:
Ke=6.2%+1.3(6%)
Ke=6.2%+7.8%
Ke=14%
