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yuradex [85]
1 year ago
14

Ticket prices to a Kanye West concert increase from $40 to $60. As a result, ticket sales decrease from 50,000 to 40,000. The el

asticity of demand for Kanye West tickets equals ________ and demand is ________.
Business
1 answer:
kramer1 year ago
4 0

Answer:

.4

Inelastic

Explanation:

Elasticity of Demand = |%Change in Demand / %Change in Price|

%Change in Demand= |(40,000 - 50,000)/50,000| =  20%

%Change in Price = |(60 - 40)/40| = 50%

Elasticity of Demand = .2/.5 = .4 or 40%

.4 < 1 so Demand is Inelastic

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Railway Cabooses just paid its annual dividend of $4.70 per share. The company has been reducing the dividends by 12.8 percent e
STALIN [3.7K]

Answer:

The maximum that should be paid for the stock today is $14.74

Explanation:

To calculate the price of the stock today, we can use the constant growth model of DDM. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under the constant growth model of DDM is,

P0 = D0 * (1+g)  /  (r - g)

Where,

  • D0 is the dividend today
  • g is the constant growth rate
  • r is the required rate of return

As the growth rate in this case is negative, so we will enter the negative g.

P0  =  4.7 * (1 - 0.128) / (0.15 + 0.128)

P0 = $14.74244604 rounded off to $14.74

5 0
2 years ago
A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
1 year ago
An investigator conducting a study of a medical device under an ide is required to complete and sign
Anika [276]

An investigator conducting a study of a medical device under an ide is required to complete and sign an investigator's agreement. It is a statement of the investigator's commitment to conduct the investigation in accordance with the agreement, the investigational plan, the IDE and other applicable FDA regulations, etc., it also supervise all testing of the device involving human subjects, and ensure that the requirements for obtaining informed consent are met.

8 0
1 year ago
Younjin is a purchasing agent for Acme Enterprises. One of the products she is responsible for is copier paper for the company's
belka [17]

Answer:

Modified rebuy.

Explanation:

The buyer in a modified rebuy wants to change product specifications, price, delivery requirements, or other terms. The out suppliers see this as an opportunity to propose a better offer to gain some business.

Characteristics:

-buyers feel they can make significant advances if they review their buying situation on a regular basis.

-often, changes in styles, materials or even alternative solutions facilitate this review.

-Another reason for modified rebuy is dissatisfaction with present suppliers.

-new supplier was able to find the present supplier´s weaknesses and offered buyers new alternatives to fix their problems.

8 0
2 years ago
Suppose the yield on a 10-year T-bond is currently 5.05% and that on a 10-year Treasury Inflation Protected Security (TIPS) is 1
Serhud [2]

Answer:

c. 2.35%

Explanation:

10 year T bond Yield = 5.05 % (let it be rT10)

10 year TIPS yield = 1.8 % ( let it be r* )

MRP = 0.9%

Expected Inflation = rT10 - r* - MRP

                               = 5.05 % - 1.8 % - 0.9%

                               = 2.35 %

Therefore, The expected rate of inflation over the next 10 years is 2,35%.

4 0
2 years ago
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