You get kind of a credit every time you buy something from the card issuer. that means you borrow money for the purchase you make from the card issuer with the promise to pay them at the end of the month (or whenever your contract tells you to). it's easy to switch credit cards and there are a lot of free contracts out there. better give your credit card number to someone you don't trust than your bank account number. cause in case of a fraud you can just change credit card. changing the bank account is a lot harder than changing credit card (plus the card issuer has the problem of not getting their money. not you)
From my research, Skills USA is the most hands on when it comes to that kind of stuff.
I personally think the answer is C
Answer
a) Gordon's Constant Growth model : P0 = D1 / (r-g)
r = 3% =0.03
, g= -7% = -0.07
, D0 = $5.1
D1 = D0*(1+g)
D1 = 5.1*(1-0.07)
D1 = $4.743
P0 = 4.743/(0.03- (-0.07))
P0 = 4.743/0.10
P0 = $47.43
So, Stock M should sell at a price of $47.43 today
b) Price 8 years from now
==> P8 = D9/(r-g)
P8 = D0*(1+g)^9/(r-g)
P8 = 5.1* (1-0.07)^9 / (0.03- (-0.07))
P8 = 5.1*0.52041108298 / (0.03- (-0.07))
P8 = 2.65410
P8 = $26.54
c) Investor may want to buy the stock today for the Dividends. If the dividends paid are high enough, the present value of the dividends is also high and may more than compensate the fall in stock price. This type of stocks work and give cash flows like a project where the initial cashflows are higher and later cashflows are less because of market factors.
Answer:
LaShawn's neighbor mows his lawn during the night.
DEPENDING ON HOW OFTEN LASHAWN'S NEIGHBOR MOWS HIS LAWN, A PRIVATE BARGAINING MIGHT BE USEFUL. IF THIS HAPPENS ONCE A MONTH, THE NEED OF INTERVENTION IS NOT SIGNIFICANT. BUT IF THIS HAPPENS MORE OFTEN, PROBABLY THEN BOTH MEIGHBORS WILL NEED TO BARGAIN AN OPTIMAL SOLUTION.
Opening an Apple store in a mall causes overall sales in the mall to increase by 10%.
THIS IS A POSTIIVE EXTERNALITY, THEREFORE, ANY TYPE OF INTERVENTION WILL PROBABLY MAKE THE SITUATION WORSE.
The production of steel results in pollution that affects millions of residents in the surrounding area.
IN THIS CASE, YOU NEED GOVERNMENT INTEREVENTION. POLUTION IS SOMETHING THAT AFFECTS THE GEENRAL PUBLIC, THEREFORE, IT MUST BE ADDRESSED BY THE EPA. IN CASE THE EPA AND OTHER GOVERNMENT INSTITUTIONS DECIDE TO DO NOTHING, THEN YES, PRIVATE BARGAINING WILL PROBABLY BE NECESSARY.
