Answer:
The value of its common stock is $29.41
Explanation:
As the Dividend payment is for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Cash flow / Required Rate of return
In this case the present value of perpetuity is the value of stock cash flows is The dividend payment.
Value of Stock = Dividend / Required Rate of return
Value of Stock = $2.5 / 8.5%
Value of Stock = $29.41
I believe the answer is: D. bond prices
Bond prices is determined by the mutual agreement between the company who issue the bond and the investors who bought them along with its value in the market. federal Open Market Committee only has the jurisdiction in United States Treasury securities and banking operation.
The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
<h3>Why do firms make a zero economic profit?</h3>
In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
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Answer:
0 gain ; 72,000 basis
Explanation:
Given that
Outside basis at the end of the year = $112,000
Received a proportionate operating distribution in cash for $40,000
So by considering the above information, the amount of gain or loss is zero as she does not recognized in the distribution and her basis in her partnership interest is the remaining amount i.e
= $112,000 - $40,000
= $72,000
Yes. The marginal utility per dollar of each good is equal.
No. The marginal utility per dollar of of high-quality apples is greater than the marginal utility per dollar of low-quality apples.
more; fewer
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