Answer:
c. Economists devise theories, collect data, and analyze the data to test the theories
Explanation:
Economists use past data to predict the future.
They make use of sound economic theory instead of rule of thumb to predict the future.
I hope my answer helps you
We are given the statement above. I think we are supposed to determine if the statement is true or false. If this is the case, then the answer is TRUE. The diversifiable risk can be lowered if there are more stocks added to the portfolio. The nature of the diversifiable risk is that the less the stocks in each portfolio, the greater the risk.
Answer:
The correct answer is programmed.
Explanation:
Also called unstructured, they are decisions that are taken in the face of problems or situations that occur infrequently, or those that need a specific model or process of solution, for example: “Launching a new product to the market”, in this type It is necessary to follow a decision-making model to generate a specific solution for this particular problem.
Programmed decisions address rare or exceptional problems. If a problem has not been presented frequently enough to be covered by a policy or if it is so important that it deserves special treatment, it should be handled as an programmed decision. Problems such as allocating the resources of an organization, what to do with a production line that failed, how to improve relations with the community - in fact, the most important problems that the manager will face - will usually require programmed decisions.
Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
Answer: A. upward
Explanation:
Tariffs are taxes that a Government imposes on imported goods in a bid to protect local producers that are making the same goods.
When a Tariff is implemented, it will make goods from outside more expensive as well as give domestic producers an opportunity to charge higher prices as imports have become more expensive.
Both of these results will pull the domestic prices up.