Answer:
Present Value= $240,000
Explanation:
Giving the following information:
Perpetuity= $12,000
Growing rate= 5%
Interest rate= 10%
To calculate the present value of this perpetual annuity, we need to use the following formula:
PV= Cf/ (i - g)
Cf= cash flow
i= interest rate
g= growing rate
PV= 12,000/ (0.10 - 0.05)
PV= $240,000
Answer:
Meatball prices will exceed marginal cost.
Explanation:
Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.
The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.
The stock market is where shares of public limited companies are traded. An example is the New York stock exchange.
B, I think I don’t know too much. But that sounds the most correct