Answer:
: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.
Explanation:
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these
Answer:
O zero
Explanation:
Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.
Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.
The formula for price elasticity is
Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)
Assume the demand is 10 units
Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)
Elasticity of demand = (0) ÷ (-20)
Elasticity of demand = 0
Answer:
PED = 0
Explanation:
The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,
PED = % Change in Quantity demanded / % Change in Price
or
PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]
Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10
So,
PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]
PED = 0
Thus, the price elasticity of demand is zero.
2. What is the current market value of the firm?
3. What will be the value of the firm next year after the payout?
Answer:
1. The dividend per share in year 2 would be $2.16.
The dividend per share in year 3 would be $2.3328
2. The market value of the firm is $50 million
3. The value of the firm next year after the payout is $ 54
Explanation:
1. In order to calculate the dividend per share in year 2 and the dividend per share in year 3 we would have to make the following calculation:
dividend per share in year 2=dividend per share in year 1*(1+Growth Rate)
dividend per share in year 1=$2
Growth Rate=Retention Ratio * ROE
Growth Rate=40% * 20%
Growth Rate=8%
Therefore, dividend per share in year 2=$2*(1+8%)
dividend per share in year 2=$2.16
dividend per share in year 3=dividend per share in year 2*(1+Growth Rate)
dividend per share in year 3=$2.16(1´8%)
dividend per share in year 3=$2.3328
2. In order to calculate the current market value of the firm we would have to make the following calculation:
market value of the firm=Currect Share Price * Number of outstanding shares
According to the given data:
Currect Share Price=$50
Number of outstanding shares=1 million shares
market value of the firm=$50*1 million shares
market value of the firm=$50 million
3. In order to calculate the value of the firm next year after the payout we would have to calculate first the rate of return as follows:
value of the firm =dividend per share in year 1/rate of return-growth rate
$50* Rate of Return - 4 = $2
Rate of Return = 6 / 50
Rate of Return =12%
Therefore, value of the firm next year after the payout=dividend per share in year 2/rate of return-growth rate
value of the firm next year after the payout=$2.16/0.12-0.08
value of the firm next year after the payout=$ 54
Answer:
a. Cash basis - amount is $3,600
b. Accrual basis - amount is $1,200
Explanation:
a.
Under the cash basis, the amount which will be recorded is as:
In cash basis, it is the method or way of recording the accounting transactions for the revenue and the expenses only when the cash (corresponding) is received or when the payments are made.
So, in this $3,600 is paid, the full amount will be recorded.
b.
Under Accrual basis, the amount which will be recorded as:
In Accrual basis, it is the method or way of recording the accounting transactions for the revenue when it is earned and the expenses is recorded when it is incurred.
So, in this the expense to be recorded for 2 months, it is computed as:
For per month = $3,600 / 6
= $600 per month
For 2 months, it is:
= $600 × 2
= $1,200
Therefore, the amount is $1,200 for 2 months.
Answer: The eight-firm concentration ratio in this industry is 0,7.
Explanation: The concentration ratio measures the proportion of total production produced by, in this case, the first eight largest companies in an industry. It is calculated by dividing the market share of the first eight firms in the industry by the total market share.
So: The first 8 firms sell: 3 each 12%. The next 3 each 8%. And thirdly 2 firms each 5%.
Then we calculate: (3x12) + (3x8) + (2x5) = 70% These companies represent 70% of the industry's total output.
So the concentration ratio is = = 0,7
Answer:
If all the given description follows then:
You are a proponent of the WEAK form of the EMH.
Explanation:
Here, it has been given that:
I am believing that stock prices can reflect or show all the information about it which can be derived by examining the data related to it
i.e. The market trading data
This market trading data depicts the stock prices at the present and also the past values of all the stock prices. It also contains short interests, trading volume.
But i in this case doesn't think that its all correct as i think that the stock prices will reflect all the information's publicly and all the information's related to it fro the inside.
So, If all the given description follows then:
You are a proponent of the WEAK form of the EMH.
Weak form of EMH: The EMH weak form's depicts or supposes that the prices of the stock prices and their current values get reflected in full form.
Also allows to present all the security information of it.
It consists of all the present and current data and also the data related to the volume which have no connection with the information in future direction of the prices of security.