Answer: C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase.
Explanation:
The Free-rider problem is a concept in economics that describes the fact that sometimes people benefit from goods and services that they wither did not pay for or underpaid for.
There has been a failure to exclude those individuals who are free-riding from the benefits of goods and services that other people are paying for. A simple example of the free-rider phenomenon is using Wikipedia. Most of those who use it do not contribute or pay for its upkeep in any way yet reap the benefits of its extensive information.
Economists call this a change in demand as the curve is directly linked to the demand of the product. When the demand goes up or down the curve moves left or right accordingly.
Answer: Simple random
Explanation: In statistics, a simple random sample is a subset of individuals chosen from a larger set. Each individual is chosen randomly and entirely by chance, such that each individual has the same probability .In this technique, each member of the population has an equal chance of being selected as subject. The entire process of sampling is done in a single step with each subject selected independently of the other members of the population. Simple random sampling is a method used to cull a smaller sample size from a larger population and use it to research and make generalizations about the larger group . Simple random sampling is the most basic and common type of sampling method used in quantitative social science research and in scientific research generally.
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.2)1 = $2.40
D2= Do(1+g)2 = $2(1+0.2)2 = $2.88
D3= Do(1+g)3 = $2(1+0.2)3 = $3.456
D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472
D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5
V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5
V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742
V1 = $11.3824
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n
V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5
V2 = $5.0762/0.1435
V2 = $35.3742
Po = V1 + V2
Po = $11.3824 + $35.3742
Po = $46.76
Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.
In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.
Answer:
jul-01 Prepaid expenses 13.620
jul-01 Cash 13.620
dec-31 Insurance policy expense 2.270
dec-31 Prepaid expenses 2.270
Explanation:
Paid 1-jul 13620
Three Years 13.620 36 months
Monthly 378 month
Current Year 2.270 6 months
jul-01 Prepaid expenses 13.620
jul-01 Cash 13.620
dec-31 Insurance policy expense 2.270
dec-31 Prepaid expenses 2.270
