These are examples of <u>work-related</u> characteristics
Answer:
E) Market Exchange
Explanation:
Market exchange refers to at least two people or firms trading one good or service for another. In this case, the theater group is trading a free show and other promotional activities (standup comedy nights, and volunteer work) in exchange for higher membership to their group or higher attendance to their shows.
A trade does not necessarily imply a money exchange, it can also include goods or services that provide utility for the other party. For example, an increase in group membership will help the theater group perform better.
Answer: Opportunity cost
Explanation:
The economic principle best embodied by this story is the opportunity cost. Opportunity cost is the cost of what one forgoes when one takes an alternative decision.
In this case, the opportunity cost of him visiting his aunt will be the lost opportunity which he could have used to watch his brother play.
Answer:
11%
Explanation:
To address this exercise, we need to recall the formula for dividend discounted model (DDM). The DDM is stated as below:
Stock intrinsic value = Next year dividend/(Required rate of return - Long term growth)
Rearrange a bit this formula, we have:
Next year dividend/Stock intrinsic value = Required rate of return - Long term growth, or
Dividend yield = Required rate of return - Long term growth
Putting all the number together, we have:
6.4% = Required rate of return - 4.6% or Required rate of return = 11%
