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1 year ago

The main reason for considering nonconstant growth in dividends is to allow for _ growth rates over _.

1 answer:

7 0

Based on the economic and financial analysis, the main reason for considering nonconstant growth in dividends is to allow for "Supernormal" growth rates over "some finite length of time."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is supernormal and some finite length of time.

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In a given amount of time John can produce either 40 pounds of vegetables or 10 pounds of chicken. In the same amount of time Ge

aleksandrvk [35]

Answer:

Ten pounds of chicken to trade for at least 40 pounds of vegetables but not more than 50 pounds of vegetables

Explanation:

Vegetables Chicken Trade Off Ratio

John 40 10 4:1 (40/10) or 1:0.25 (10/40)

George 25 5 5:1 (25/5) or 1:0.20 (5/25)

John has comparative advantage in Chicken and George has comparative advantage in Veggies because :

John's chicken opportunity cost, in veggies < George (4<5). George's veggies opportunity cost, in chicken < John (0.20<0.25).
George is more (5X) productive in veggies than chicken, than John (4X). John is less unproductive in chicken than veggies (1/4th), compared to George (1/5th).

So, John will sell Chicken to George & George will sell veggies to John. Gains from trade are when each get trade ratio better than their their own trade off ratio.

It implies: John gets >' 4 pounds veggies per chicken pound' and George gets > '0.20 pound chicken per veggie pound'.
Unitary method:- '1chicken : 4veggies' = '10chickens : 40veggies' and '0.20chicken : 1veggie' = '10chickens : 50 veggies' .

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1 year ago

Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is ____________ than the quantity supplied of good X,

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The answer is (b) Greater,Rise ,toward

Explanation:

Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is Greater than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon Rise .This would push the price Toward the equilibrium price

The law of Demand states that the price and the supply of the product are inversely related (i.e . ceteris Paribus).

Also an increase in the number of buyers of a particular product leads to a shift in the demand curve towards the right side

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1 year ago

It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $

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Answer:

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1 year ago

When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price rises to $1.50, the quantit

Bas_tet [7]

Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity is used to measure the change in demand as a result of a change in price.

Formula is;

= % change in Quantity/ % change in Price

a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

$=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{60,000 - 100,000}{\frac{100,000 + 60,000}{2}} \\\\= -0.5$

% Change in Price using midpoint formula

$=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.5 - 1.00}{\frac{1.00 + 1.50}{2} } \\\\= 0.4$

= -0.5/0.4

= -1.25

b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

$=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{100,000 - 60,000}{\frac{100,000 + 60,000}{2}} \\\\= 0.5$

% Change in Price using midpoint formula

$=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.00 - 1.50}{\frac{1.00 + 1.50}{2} } \\\\= -0.4$

= 0.5/-0.4

= -1.25

7 0

1 year ago

The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIF

Alex787 [66]

Answer:

ending work in process = $42,700

Explanation:

all materials added at the beginning of the process:

beginning work in process = 18,000

units started = 160,000

ending work in process = 7,000

equivalent units for materials = 160,000 + 7,000 = 167,000

conversion costs:

beginning work in process = 18,000 x 10%, so 90% added = 16,200

units started and transferred out = 160,000 - 7,000 = 153,000 x 100% = 153,000

ending work in process = 7,000 x 40% = 2,800

equivalent units for conversion costs = 16,200 + 153,000 + 2,800 = 172,000

ending work in process = 7,000 units

100% complete for materials = 7,000 x $3.10 = $21,700

40% complete for conversion costs = 2,800 x $7.50 = $21,000

total ending work in process = $42,700

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1 year ago

The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

The main reason for considering nonconstant growth in dividends is to allow for _ growth rates over _.