Answer:
There are 4 conditions that make a market to be perfectly competitive:
- There must be a large number of buyers and sellers, and each one must be relatively small.
- All the sellers produce identical products or services.
- There are no barriers for entry or exit.
- All the buyers and sellers are price takers, no one can set the price at their own will.
Answer: Option B and C
Explanation: In simple words, oligopoly refers to the market structure in which there are few firms operating at a huge level and selling products that are close but not absolute substitutes of each other.
The high level of investment and too much of legal formalities makes it difficult to entry in such industries. Firms in such industries produce identical goods thus they do not compete in the amaretto with respect to price.
the firms operate their market on the basis of non price factors such as advertisements but still are mutually interdependent on each other as a minor decrease in price of other can deregulate the demand in the whole industry. Automobile sector is one the primary examples of oligopoly.
Answer:
$0.72
Explanation:
The computation of the amount of the last dividend paid is shown below:
Market price of a stock = Last dividend × (1 + growth rate) ÷ Required rate of return - growth rate
$12.36 = Last dividend × ( 1 + 0.03) ÷ 0.09 - 0.03
$12.36 = Last dividend × (1.03) ÷ 0.06
$12.36 × 0.06 = 1.03 × last dividend
$0.7416 = 1.03 × last dividend
So,
last dividend is
= $0.7416 ÷ 1.03
= $0.72
Long-term bonds are preferable to hold if interest rates decrease because their price will rise more than the price of short-term bonds, providing a bigger return. Long-term bonds, however, are more susceptible to interest-rate risk. In addition, the longevity of the bonds, not only their term to maturity, is a major factor.
<h3>What are
short-term bonds?</h3>
Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.
The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.
To know more about bonds, visit
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Answer:
Value = $23.35
Explanation:
First, find dividend per year using the growth rates given;
D1 = 2.45
D2 = 2.45 (1.30) = 3.185
D3 = 3.185 (1.17) = 3.7265
D4 = 3.7265 (1.17) = 4.3600
D5= 4.3600(1.08) = 4.7088
Next, find the PV of each dividend;
PV(D1) = 2.45 / (1.22) = 2.0082
PV(D2) = 3.185 /(1.22²) = 2.1399
PV(D3) = 3.7265/ (1.22³) = 2.0522
PV(D4) = 4.3600/ (1.22^4) = 1.9681
PV(D5) = 
15.1825
Next, sum up the present values to find the current value of the stock;
=2.0082+ 2.1399 + 2.0522 + 1.9681 + 15.1825
Value = $23.35
