$400 b. P = 20/.08 = $250 c. P = D1/(k - g) = 20/(.08 - .02) = $333.33 2) If a stock is expected to pay a dividend of $40 for the current year‚ what is the approximate present value of this stock‚ given at discount rate of 5% and a dividend growth rate of 3%? Answer: P = $40/(0.05 - 0.03) = $40/0.02 = $2‚000 Topic 2: Supply and Demand 1) Suppose that the demand for oranges increase. Explain the long -run effects of the guiding function of price in this scenario. Answer: In
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1. Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8‚ the quantity demanded for each person is 5. When the price is $4‚ the quantity demanded for each person is 9. Assuming the law of demand holds‚ which of the following choices is the most likely quantity demanded in the market when the price is $6? Explain and show calculations‚ While the question asks of the choices given what the quantity demanded will be‚ there are no choices
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bell curve is literally‚ the symmetrical curve created on a graph when using a frequency distribution method for a set of data‚ splitting the mean symmetrically. There is a big difference between standard deviation and the bell curve! Standard deviation shows the difference in variation from the average; the bell curve‚ also normal distribution or Gaussian distribution‚ shows the standard deviation and is created by the normal or equal distribution of the mean among either half. The bell curve is an
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ECON 1. (Demand Under Perfect Competition) what type of demand curve does a perfectly competitive firm face? Why? A horizontal or a perfectly elastic‚ demand curve. A perfectly competitive firm is called a price taker because that firm must “take‚” or accept‚ the market price- as in “take it or leave it.” 2. Explain the different options a firm has to minimize losses in the short run. A firm in perfect competition has no control over the market place. Sometimes that price may be so low
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effect on the demand curve Markets in Action Advertising and its effect on the demand curve Advertisement has always been an important market strategy for firms to accomplish their goals. From cereal companies to airline companies‚ it is inevitable to go through the process of advertising. However‚ what purpose does advertising serve for consumers and suppliers in the market? In this report‚ it is to examine the relationship between advertising and the market demand curve. Moreover‚ the impact
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1. Economies of Scale. If the firms produces in an industry with very high fixed costs‚ consumers can benefit from a large firm which can exploit economies of scale. Economies of scale lead to lower long run average costs and therefore give the potential of lower prices. Example: Would you want several firms providing tap water? Would it make sense to have 2-3 companies laying a network of water pipes and sewage systems across the country? No. It is better to have 1 firm. This is an example of
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Spectrophotometer; the finding of protein concentration of an unknown sample of BSA‚ and by using the standard curve. Abstract A spectrophotometer’s purpose is to use colors of the light spectrum to determine the concentration of light absorbing molecules in a solution. (p.59) In this particular lab‚ our mission was to determine the protein concentration and the standard curve of the unknown sample of BSA. This‚ by preparing five dilutions of the unknown solution of BSA together with other
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conjunctivitis can occur in one or two of a person’s eyes. It tends to cause a watery discharge while conjunctivitis caused by bacteria causes a thicker discharge. Both are transmitted to another eye in the discharge. Children are primarily affected by bacterial conjunctivitis‚ possibly because it is more transferable in a location like school. People are at a higher risk of developing conjunctivitis if they use contacts. Those who come in
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of the yield curve. In your answer also discuss the uses of the yield curve in financial markets‚ why strips are used in the construction of yield curves and why investors would want to invest in zero coupon bonds or strips. The yield curve is a graph that plots the yields of similar-quality bonds against their maturities‚ ranging from shortest to longest. The relationship between yield and maturity is referred to as the term structure of interest rates. The Treasury yield curve is the base or
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Alyse Rose Microbiology Lab Bacterial Unknown March 25‚ 2013 Bacterial Unknown Report Each student was given an unknown bacteria to figure out. I was given the unknown bacteria S38. Everybody is supposed to do all sorts of test to identify the bacteria. The first thing I did was smear my bacteria on a liquid medium. I then proceeded to incubate the medium for 24-48 hours. 1. GRAM STAIN The next step I took in finding my unknown bacteria was to gram stain it. This is used to differentiate
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