Answer:
Missing word <em>"What will the stock price be in three years?"</em>
a. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05) / (0.12-0.05)
Current price = 1.4*1.05 / 0.07
Current price = 1.47 / 0.07
Current price = $21
b. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05)^4 / (0.12-0.05)
Current price = 1.4*1.05^4 / 0.07
Current price = 1.4*1.21550625 / 0.07
Current price = 1.70171 / 0.07
Current price = 24.310143
Current price = $24.31
Answer:
Explanation:
4 is the right one of not sowy
Answer: The correct answer is <u>"charging a higher price to those with less elastic demand and a lower price to those with more elastic demand than it would if it could not price discriminate."</u>
Explanation: Price discrimination is a practice that involves charging for the same good or service, different prices to different consumers even though the cost of providing them is the same.
Elasticity of the demand: it is a concept that in economy is used to measure the sensitivity or capacity of answer of the demand of a product against a change in its price.
So: A price-discriminating monopolist can increase profits by charging a higher price to those with less elastic demand and a lower price to those with more elastic demand than it would if it could not price discriminate.
Answer: Liability account
Explanation:
This is a case of looking it from bank's point of view or from the books of the bank.
Customer has deposited their money in the bank. For a certain fee. The money is secured by the bank and can be withdrawn by the customer anytime they want to. Hence cash is increased but it is still a liability for the bank since they do not have a claim to that money. It's the customers assets they are securing.