Answer:
The correct answer is letter "D": equal to the present value of all expected future dividends.
Explanation:
The Constant-Dash-Growth Valuation or the Gordon Growth Model is used to calculate the intrinsic value of a stock today based on the stock's expected future dividends. It is widely used by investors and analysts to compare the predicted stock value against the actual market price. The difference between them may determine if the stock is overvalued or undervalued by the market.
Answer:
4.28 grams
Explanation:
The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by the formula:
Given that:
P(x > 5.1 grams) = 5%, x = 5.1 grams, σ = 0.5 grams
P(x > 5.1 grams) = 5%
P(x < 5.1 grams) = 100% - 5% = 95%
P(x < 5.1) = 95%
From the normal distribution table, 95% corresponds with a z score of 1.645. Hence:
Answer:
$240
Explanation:
The computation of cash flow from operating activities of Felix company is seen below;
= Net income - Decrease in plant and machinery + decrease in expense - increase in deferred assets + gain on sale of assets
= $300 - $40 + $20 - $5 + $35
= $240
Therefore, cash flow from operating income of Felix company is $240
Answer:
The market price of a good equates the total cost of production and the marginal value that consumers attach to a unit of the good. Because the price also reflects the opportunity cost of the resources employed to produce the last unit, consumers will value the last unit until they purchase at least as much as they would value any other good that those resources could have produced. These characteristics of perfectly competitive markets guarantee productive efficiency.
Explanation:
Prices in the market are determined by supply and demand. If demand exceeds supply, that is, there is excess demand, the price will rise. If the supply exceeds the demand, that is, there is an oversupply, the price will fall. When demand and supply are equal, the price of a commodity theoretically corresponds to its cost of production. If the market refuses to pay a price equal to the cost of production, the cost of production will exceed revenue and therefore the cost of production must be adjusted to the market price in order to avoid losses. If the commodity has already been produced, one has to settle for the loss-making price it obtains on the market. Prices are distorted, for example, by raising taxes (such as VAT) and subsidies by lowering prices. In addition, prices are distorted by imperfect competition.
Answer:
Blu-ray discs are normal goods and DVDs are inferior goods.
Explanation:
A normal commodity is a product that is experiencing a growth in its consumption due to the increase in the earnings of the customers. A standard good, sometimes named a required good, does not relate to the price of the commodity but rather to the degree of demand for both the product in response to rises or decreases in wages.
On the other hand, An inferior product refers to the product whose value reduces as customer wages increase, unlike regular products in which the reverse is observed. Standard products are those products to which output grows as market spending decreases.