Assume there are two profit-maximizing water service providers in this market who had formed a successful cartel. Now assume that the cartel breaks down, so that they are not able to collude on the price and quantity of service contracts to sell. How many service contracts will be sold in total when this market reaches a Nash equilibrium

Answers

Answer 1

A total of 12,000 premium digital channel cable TV subscriptions will be sold when this market reaches a Nash equilibrium.

The Nash equilibrium, which bears the name of the mathematician John Nash, is the approach that game theory uses the most frequently to describe the outcome of a non-cooperative game involving two or more participants. Changing one's own strategy won't help anyone if everyone in a Nash equilibrium is aware of one another's equilibrium tactics. The concept of Nash equilibrium was initially presented by Cournot in 1838 in respect to the production decision made by rival enterprises. Each player in the game has a distinct approach they will use. If no one can raise their projected benefit by changing their strategy and the other players continue to use their present one, the players will use their current set of strategies.

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Related Questions

How long will it take P6700 to accumulate to P7604.50 if the money is invested at 9% simple interest?

Answers

Answer: The answer is 1.5 years or about 1 year and 6 months.

Explanation: The formula used to solve the problem is

t = I / Pr

which is derived from the formula of Simple Interest (SI)

SI = Prt

where, P is the principal amount, r is the rate of interest and t is the time period.

Solving the sum step by step,

First, converting R percent to r a decimal

r = R/100 = 9%/100 = 0.09 per year,

to find out amount of SI we use,

SI = Final value - Principal amount = 7604.5-6700 = 904.5

then, we substitute the values that are known to us in the equation provided,

t = 904.5 / ( 6700 × 0.09 ) = 1.5

t = 1.5 years

Therefore, the time required to accumulate simple interest of 904.50

from a principal of 6,700 at an interest rate of 9% per year

is 1.5 years or 1 year and 6 months.

What are the latest trends in employee development?

Answers

The latest trends in employee development are personalized learning, microlearning, gamification, digital learning, social learning.

What is employee development?
Employee development
is an investment made by employers to improve the knowledge, skills, and abilities of their employees. It is a process of providing employees with experiences and training that can help them to develop their current and future performance. It can involve activities such as on-the-job training, formal courses, mentoring, and job rotation. Employee development is important as it helps employees to stay motivated, become more productive, and gain the skills and knowledge they need to reach their career goals. Employers benefit from employee development because it helps to reduce turnover, attract top talent, and increase employee engagement.

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A broker can violate the antitrust laws relating to real estate, by participating in any of the following, except: A)dividing the market.
(B) group boycotting.
(C) price fixing.
(D) tithing.

Answers

A broker may violate real estate antitrust laws by engaging in any of the following: price fixing, dividing market, or group boycotts. Price fixing is when two or more parties agree to set a price for a good or service.

Market splitting is when two or more parties enter into an agreement to divide an area into territories. A group boycott is when two or more parties agree to refuse to buy or sell goods or services from a certain party. However, tithing does not violate real estate antitrust laws. Tithing is a religious practice in which a portion of income is donated to a religious organization or other cause. Tithing does not involve price fixing, market sharing, or group boycotts and therefore does not violate antitrust laws.

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You expect the following future cash flows: $11,000 at the end of year 1, $12,100 at the end of year 2, nothing at the end of year 3 and $14,641 at the end of year 4. What is the present value of this series of payments at 7% interest

Answers

The sum of the present values of the payments is 31,319. It makes a comparison between the purchasing power of one dollar now and one dollar in the future.

What does the value of the present mean?

The value of some amount of money in the future at the present time is known as the present value. For instance, if you are promised $110 in a single year, the present value is the $110's current value.

How is the present value determined?

Future Value (FV) = Present Value (PV) / (1 + r)  n

Rate of Return, or r.

n is the number of times.

i = 8%

The present value of a payment in year one is [11,000 / (1 + 0.08)^1] equal to 10,185.18

The present value of a payment in year two is [12,100 / (1 + 0.08)^2] equal to 10,373.80

The present value of a payment in year four is  [14,641 / (1 + 0.08)^4] equal to 10,761.57

The sum of the present values of the payments is 31,319.

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Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
A) need recognition
B) cognitive dissonance
C) consumer ethnocentrism
D) conspicuous consumption
E) consumer capitalism

Answers

Almost all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict. Thus, option 'B' is the correct option.

What is cognitive dissonance?

Cognitive dissonance, as used in psychology, is the mental strain brought on by the perception of contradictory information. A person's behaviors, feelings, thoughts, beliefs, values, and things in the surroundings are examples of relevant pieces of information. Having to choose between conflicting options, putting effort into the aim, and is required to comply with something against one's convictions are all examples of cognitive dissonance triggers.

Contrary to popular belief, cognitive dissonance is beneficial to our mental health and happiness. Particularly when they cannot be readily changed, it may help us feel content with our decisions—or at the very least, allow us to rationalize them.

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What is paige’s net income for december?
a. $900
b. $950
c. $1,850
d. $2,750

Answers

Paige made $900 in net income in December.

How much is net income?

Operating income is the entire amount of money that a person or company made over a specific time period after deducting taxes, costs, and interest. A company's net income, which can also be called to as operating revenue, net earnings, or just profit, calculates its profitability.

How is net income determined?

Minus expenses, such as interests and taxes payments from the gross revenue which is the amount of money produced. Net income for individual is the amount that really receive from their paycheck each month as opposed to gross amount they are paid including payroll deductions.

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An increase in capital will increase real GNP per person a. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment. b. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment. c. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. d. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.

Answers

The correct option is D. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.

Gross national Product (GNP) is Gross domestic Product (GDP) plus net element income from abroad. Description: GNP measures the monetary fee of all the completed goods and offerings produced through the united states' elements of production regardless of their location.

The gross country-wide earnings (GNI), previously referred to as gross country-wide product (GNP), is the overall home and overseas output claimed with the aid of citizens of a rustic, together with gross domestic product (GDP), plus issue incomes earned by means of foreign residents, minus profits earned in the home economic system via nonresidents.

44  evaluating GNI to GDP suggests the diploma to which a kingdom's GDP represents domestic or international hobby. GNI has step by step replaced GNP in worldwide facts. even as being conceptually equal, it's far calculated differently. GNI is the basis of calculation of the biggest part of contributions to the budget of the ecu Union.

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What are some trends impacting human resource management?

Answers

Trends impacting human resource management  are: Automation, Big Data, Workplace Culture, Employee Engagement, Globalization.

What is human resource?
Human Resources (HR)
is the department within a company responsible for the management of people and their relationships. HR is responsible for recruitment, employee orientation and training, labor relations, payroll and benefits, employee performance management, and compliance with applicable laws and regulations. HR is also responsible for creating and implementing effective strategies to attract, retain, and motivate employees. The ultimate goal of HR is to ensure that the organization's human capital is used effectively and efficiently to meet the organization's goals and objectives.

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In which of the following instances is being a first-mover not particularly advantageous? When the first-mover already has a sizable global market share OWhen a pioneer is already the industryâTMs low-cost provider or best-cost provider When the first-mover is pioneering a new technology rather than a new product When first-time customers do not remain strongly loyal to pioneering firms in making repeat purchases When the first-mover is employing a blue ocean strategy

Answers

When first-mover customers are not strongly loyal to repeat-buying pioneers.

Early mover disadvantage (or late mover advantage) rarely occurs when: The market response is strong, allowing Pioneer to gain a monopoly position and recoup its investment. First-mover advantages include economies of scale, or time to develop cost-effective ways to manufacture or deliver a product. First mover disadvantages include the risk that the product will be copied or improved by competitors. Even latecomers have a competitive advantage if the cost of copying a product is low.

For example, one study found that in the chemical, pharmaceutical, electronics, and machinery industries, the "cost of imitation" is about two-thirds of the product development cost incurred by the pioneers.

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Which is an example of a credible detail that supports your point in a persuasive​ proposal?
A. Established by the shipment received​ yesterday, the unit cost will be​ $1.50.
B. Based on a quick look​ around, those parts could be available soon.
C. We heard from a customer last year that the product was great.
D. We are confident that we can meet your requirements.
E. I promise the product works.

Answers

Option A is correct. Example of credible detail that supports your point in a persuasive​ proposal Established by the shipment received yesterday, the unit cost will be $1.50.

This is an example of a credible detail that supports a point in a persuasive proposal because it is specific, quantifiable, and can be verified. The cost is established by a shipment that was received yesterday and it's a clear number that can be used in the proposal to make a point. This information is much more convincing than the other options.

B. Based on a quick look around, those parts could be available soon. is not a credible detail because it's not verifiable and it's not based on a proper research.

C. We heard from a customer last year that the product was great. is not a credible detail because it's not verifiable and it's not based on recent feedbacks.

D. We are confident that we can meet your requirements. is not a credible detail because it's not verifiable and it's not based on a specific evidence.

E. I promise the product works. is not a credible detail because it's not verifiable and it's not based on a proper research.

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How will the workplace change in the future?

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The workplace of the future will be more flexible and virtual, with technology playing a larger role in how work is done.

What is workplace?
Workplace
is the physical and virtual environment where people come together to work and collaborate. It includes all the tools, technology, processes, and structures that enable work to be completed and goals to be achieved. It also includes the physical workplace such as office buildings, factories, and retail centers, as well as virtual workspaces such as online meetings and virtual workspaces. It includes the processes, policies, and procedures that ensure the effective functioning of an organization and the development of its employees. Workplace also encompasses the culture, values, and practices that shape the way people interact, collaborate, and work towards common goals.

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Julia works in an advertising company where there is intense competition. How can she prove herself as a reliable employee

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Julia can prove herself as a reliable employee by consistently delivering high-quality work on time, effectively communicating with her team and managers, being proactive in finding solutions to problems, and showing a strong work ethic.

Julia should take initiative in her role, actively seek out new opportunities, and take on additional responsibilities when possible.

She should also be available to help her team members and show a positive attitude towards feedback and criticism. She can also build a strong network within her company.

Julia should strive to be a valuable asset to her team and company by continuously improving her skills and knowledge in her field.

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Answer: C

Explanation: Be punctual and deliver work on time

What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 11 years if the appropriate discount rate is 12%.

Answers

Bond Price = M / (1 + r)^n

=$1,000/(1+ 12%.)^11=9821.42

Finding a bond's fair price is the process of bond valuation. The theoretical fair value of a bond is the present value of the stream of cash flows it is anticipated to produce, much like with other securities or capital instruments. To determine a bond's value, future cash flows are discounted to the present using the appropriate discount rate. If there are comparable instruments, this discount rate is often determined in practice through comparison. The associated yield-measures are then calculated at the specified price.  On the other hand, if a bond's market price is higher than its face value.

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Shannelle is transferring from her current broker, Monica, to a new broker, Robert. Shannelle has three active with Monica's brokerage. When she transfers, to which brokerage will these listings belong

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When Shannelle will transfer from her current broker, the active listings of Shannelle with Monica will remain with Monica's brokerage only.

Brokerage is the condition in which the customer signs a legal document with the real estate agency. When a customer wishes to shift from one broker to another, all the pending assignments/ deals with the first broker is completed with them only and the deal cannot be shifted from person to person as it is linked with a legal document between the broker and the real estate owner. This legal document is called as listing agreement. It essentially guides the broker to find a new customer for the property through some agency which changes from broker to broker.

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Which of the following is a major consideration when analyzing a special pricing decision? O A. The profit margin ratio of the special sale must be higher than the regular sales. OB. The company must have a good stock turnover ratio. OC. The sunk costs of the decision must not exceed the irrelevant costs. OD. The sales price must be high enough to cover any differential costs to fill the order.

Answers

The sales price must be significant enough to cover any differential costs to fill the order. A major consideration when analyzing a unique pricing decision. The correct option is (d).

The actions that result in the sale of items or services are referred to as sales. Businesses have segmented revenue organizations with several teams inside them. Additionally, these marketing companies are frequently chosen depending on the geography, the commodity or service, and the intended market.Companies assign personnel to whole departments that are responsible for promoting and advertising their goods and services. Marketers contact potential customers who have shown interest in the goods or services their business offers, such as those who have visited the website or engaged with the business on social media.

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If a firm has two or three sources of capital, what is the sum of the weights of these sources of capital in the WACC formula

Answers

The following equation can be used to determine WACC: WACC = [(E/V) x Re] + [(D/V) x Rd x (1 - Tc)]. with E denoting the equity market value. Equity cost is Re.

What is sum?

Sum is a mathematical operation that is used to add two or more numbers together. It is usually denoted by a plus sign (+) and is an essential part of basic math. The result of adding two or more numbers together is called the sum. Sum can also be used to add up a set of numbers, or to add up items in a list or array. In addition to its uses in mathematics, sum can also be used to refer to the whole amount of something, such as the sum of money spent or earned, or the sum of points earned in a game. Sum can also be used to refer to the entire amount of a group of items, such as the sum of books on a shelf, or the sum of people in a group. Sum is an important concept in mathematics, and it is often the first operation that children learn when they begin to study math.

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Inventory at the end of April, 2008: 200 units Expected demand during April, 2008: 50 units Production expected during April, 2008: 100 units What was the inventory at the end of March 2008

Answers

B) 150 of the stock as of the end of March 2008. Raw materials and components, work in progress, finished goods, and supplies for maintenance, repair are the four main categories of inventory.

What exactly does inventory mean?

The term "inventory" refers to any and all items, goods, merchandise, and materials held by a company for eventual market sale to generate revenue. Example: Only the newspaper will be counted as inventory if a newspaper vendor delivers newspapers to customers via vehicle. The automobile will be considered an asset.

Inventory at the end of April is given by Inventory at the end of April = production in April - demand in april + inventory of march,

which equals 200 = 100 - 50 + inventory of march,

making inventory at the end of march equal 150.

Expected demand in April is equal to 50 units,

and production is expected in April is equal to 100 units.

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Full Question = Inventory information for firm ABC:

Inventory at the end of March, 2008 200 units

Expected demand during April, 2008 50 units

Production expected during April, 2008 100 units

What is the expected inventory at the end of April 2008?

A. 350

B. 250

C. 150

D. 50

E. 80

farmer bill sella potatoes at the farmers marketFarmer Bill sold potatoes at the farm market. He sold a quarter to the first person, 4/9 of what was left to the second person, and the third buyer bought 4/5 of what was left and the last 10 lb. How many pounds of potatoes farmer Bill sold

Answers

The farmer Bill sold 120 pounds of potatoes at the farm market. He made his last transaction of 50 pounds when he sold "4/5 of what he has left, plus the remaining 10 pounds."

What does the term "farmers market" mean?

Farmers' markets allow farmers to interact personally with their customers, give consumers access to locally grown, farm-fresh fruit, and foster consumer loyalty to the farmers who raise the product.

With x pounds of potatoes, he begins.

After selling a quarter of them, he is left with (3/4)x pounds.

He then sells 4/9 of what is remaining in his possession, leaving him with 5/9. He has 5/9 of (3/4)x pounds remaining, or (5/12)x pounds.

He made his last transaction of 50 pounds when he sold "4/5 of what he has left, plus the remaining 10 pounds."

(5/12).x = 50

x= 120

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Strauch Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During Year 2, 100,000 shares of common stock were outstanding. In Year 3, two distributions of additional common shares occurred: On April 1, 20,000 shares of treasury stock were sold, and on July 1, a 2-for-1 stock split was issued. Net income was $410,000 in Year 3 and $350,000 in Year 2. What amounts should Strauch report as basic earnings per share in its Year 3 and Year 2 comparative income statements

Answers

Weighted average shares, Year 2= 100,000(2) = 200,000.

EPS, Year 1 = $350,000/200,000 = $1.75.

Weighted average shares, Year 3 = [100,000 + 20,000(9/12)]2 = 230,000

EPS, Year 2 = $410,000/230,000 = $1.78.

The total number of shares held by investors and corporate executives is known as the common stock outstanding of a firm. This number is significant because it is used to convert a company's total performance.

The per-share measures can make an examination of a stock's market price at a particular period simpler. Subtracting the shares bought back from the overall shares issued thus far yields the number of shares outstanding.

The quantity of shares of common stock that a corporation has issued to shareholders and top executives is referred to as shares outstanding. Numerous widely used financial indicators, including market capitalization and earnings per share (EPS).

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In a pleasant but unfamiliar setting, infants with an avoidant style insecure attachment are most likely to:
A. cling to their mothers and ignore the new surroundings.
B. use their mothers as a base from which to explore their new surroundings.
C. show hostility when their mothers approach them after a brief absence.
D. act as though their mothers are of little importance to them.

Answers

The correct option for this question is: D acts as though their mothers are of little importance to them.

Infants are conceived furnished with a scope of intrinsic ways of behaving to boost their endurance. Connection conduct permits the newborn child to draw others towards them at snapshots of need or pain (Fonagy et al., 1995). Infants who experience a solid connection relationship foster a sensibly firm assumption for feeling secured and safe, which thus permits them to certainly investigate their reality more.

Our nature for connection, which is shared by most well evolved creatures, is an essential transformation for endurance in outset. At the point when infants (or for sure grown-ups) are scared, focused, feel unwell or are under danger, their connection framework is cautioned. Infants in this state will start nearness looking for ways of behaving (like crying, sticking, or following with their look in infants; more verbal or refined ways of behaving in more established kids) towards their essential connection figure (typically a parent or the primary guardian). When closeness and consolation have been accomplished, the connection framework can be deactivated. Looking for help and the various methodologies and singular purposes to acquire assist with comprising the structure blocks of the connection interaction.

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information that is not generally reported for each class of stock on the balance sheet is... a. shares authorized b. the market value c. the par value d. shares issued

Answers

Answer:

The correct answer is c. the par value. The par value of a stock refers to the value assigned to a particular share of stock when it is issued. This value is typically very low, and it is used primarily for legal purposes, such as calculating the minimum amount that must be paid to shareholders in the event of a company liquidation. The par value of a stock is not generally reported on the balance sheet. Instead, the balance sheet will typically report the number of shares authorized, issued, and outstanding for each class of stock. The market value of a stock, which is the current price at which the stock is trading in the market, is also not generally reported on the balance sheet.

Explanation:

A company's sales clearly represent a source of funds. However, they do not appear on the balance sheet. Why

Answers

Not the activity itself as measured by sales, but the balance resulting from the activity is what is displayed on the balance.

I concur with the claim that the company's net income and owner equity statement are both indirectly included in the balance sheet of the business. Since the balance sheet is a statement that details the financial performance or condition of the business at a particular or specific point in time.

Because owner's equity is the capital of the firm as stated in the balance sheet as opposed to net income, which is the result of the income statement and is immediately displayed in the income statement. Retained profits already comprise net income, thus it appears indirectly on the balance sheet.

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If there is a fall in the interest rate, _____. the unemployment rate will most likely rise there will be a downturn in the economy businesses will be more likely to expand their facilities

Answers

If there is a fall in the interest rate, recession. the unemployment rate will most likely rise there will be a downturn in the economy businesses will be more likely to expand their facilities.

If workers stop seeking for job as the labour market deteriorates, the unemployment rate may actually go down; conversely, as the labour market recovers, unemployment may go up as more people join the labour force and resume economy for work. The Phillips Curve, as it is known, has been used to formalise this. The Phillips Curve states that when unemployment is lower, people spend more, which puts more pressure on pricing.

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The school Spanish Club is sponsoring a trip to Mexico that will cost $1000 per student. Your parents will contribute $300 but you need to save the remaining $700 over the next four months. You currently work seven hours a week babysitting for $10 per hour. The following are your monthly expenses.

Variable Expenses (Clothes, CS’s, Movie Tickets etc. ) $180.00
Fixed Expenses (school fees, buss pass) $65.00

Calculate your monthly earnings and expenses

Compute how much you will need to earn and/or reduce your expenses to meet your goal.


Real World Application
You want to save $2000 for college by working over the summer. You can find a job that will pay you for 40 hours per week at a regular rates plus an average of 10 hours per week at Overtime rates at 1.5 times your regular rate. You can work fro 10 weeks. You figure that you need to spend $150 per week to pay miscellaneous variable expenses.

Calculate how much you will need to earn per hour to save at least $2000 in addition to meeting your weekly expenses?

Think Critically, is $150.00 in weely expenses a realistic estimate? What are you not including?

Answers

My monthly earnings and expenses are: $245

Amount I would need to earn more per month is: $120

What are expenses?

An expenditure is a business's operational cost incurred to produce income. It may be simply described as the price one must pay to acquire something. It takes money to make money, as the adage goes.

Supplier payments, staff salaries, manufacturing leases, and equipment depreciation are examples of frequent costs. Firms are permitted to write off tax-deductible costs on their income tax returns to decrease their taxable income and hence their tax burden; however, the Internal Revenue Service (IRS) has tight limits on which expenses businesses are allowed to claim as a deduction. Profit maximization is one of the top priorities for management teams in businesses. By increasing income while controlling costs, this is accomplished. Cutting expenses might enable businesses to increase their sales revenue.

However, if expenditures are lowered too much, it could also be harmful. For instance, cutting back on advertising might cut expenses but also affect a company's exposure and capacity to connect with potential clients.

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The Floor Broker holds an order to buy an option contract from 1 customer at the market; and an order to sell the same contract from another customer at the market. The Floor Broker could not execute the orders in the open market; and therefore, executed the orders by matching them. This practice is known as:

Answers

Crossing is the term for this behavior. The Floor Broker fulfilled the orders by matching them as he was unable to carry them out in the open market.

Which of the following statements most accurately depicts an order to purchase or sell while the floor broker utilizes his judgment to carry it out?

Orders marked "Not Held" provide the floor broker the flexibility to execute the order at a time that gets him the greatest price.

All orders can floor brokers accept?

They are capable of carrying positions. Only floor brokers and order book employees handle trading on the options exchanges. They execute orders received from the public but do not trade for their own accounts.

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The period T (in econd) of a pendulum i given by T=2\pi \qrt((L)/(32)), where L tand for the length (in feet) of the pendulum. If \pi =3. 14, and the period i 15. 7 econd, what i the length?

Answers

The length can be calculated if we input the value of period and [tex]\pi[/tex]. The value of length is 200 feet.

The period, or also known as periodic time, of a periodic variation of a quantity generally can be described as the time interval between two successive repetitions. We can determine the period and hence the frequency by timing the duration of one complete oscillation.

The formula of period is

T = 2[tex]\pi[/tex][tex]\sqrt{\frac{L}{32} }[/tex]

If the value or [tex]\pi[/tex] is equal to 3,14 and the period is 15,7. Then we can calculate L:

15,7 = 2 x (3,14) [tex]\sqrt{\frac{L}{32} }[/tex]

15,7 = 6,28[tex]\sqrt{\frac{L}{32} }[/tex]

2,5 = [tex]\sqrt{\frac{L}{32} }[/tex]

[tex](2,5)^{2}[/tex] = [tex](\sqrt{\frac{L}{32} })^{2}[/tex]

6,25 = [tex]\frac{L}{32}[/tex]

L = 6,25 x 32

L = 200 feet

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Yaris is working on a budget breakdown for a bathroom remodel. The total project budget is $2,000. What might his subsections be

Answers

The subsections may be Paint $300, New Tile: $1,000, Installation: $500, and Designer Fee: $200.

Renovating a structure means putting it in better shape. Without changing the original design, this entails replacing and upgrading current components to meet the necessary standards.

Any interior home renovation falls under the broad category of "home remodeling." Few people are aware that there are three different types of remodeling: full-scale, pull-and-replace, and facelift. The variety of interior modifications or replacements that each involves set it apart from the others.

There are four different categories of renovation work: fundamentals, curb appeal, best value for money, and passion projects. They don't all offer a great return on investment.

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The rate of return on which of the following has a risk premium of 0%?
A. Long term corporate bonds
B. Large company stocks
C. US treasury bills
D. Intermediate term govt bonds
E. long term govt bonds

Answers

The rate of return on which US treasury bills has a risk premium of 0%.

The loss or gain of an investment over a specific time period, stated as a percentage of the investment's original cost, is known as the rate of return (ROR). A position has won money if the ROR is positive; otherwise, it has lost money. Any investment you make will have a return rate.

Subtract the investment's initial value from its ending value to determine the rate of return (remember to include dividends and interest). Divide this sum by the investment's initial cost, then multiply the result by 100. You will receive the ROR as a percentage as a result.

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Synovec Corporation is expected to pay the following dividends over the next four years: $6.50, $17.50, $22.50, and $4.30. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price

Answers

The current share price is $101.89 with dividends over the next four years as $6.50, $17.50, $22.50, and $4.30 respectively and return on the stock being 10 percent.

How are dividends paid out?

Dividends are paid in the following manner :

A corporation makes money.The company's board of directors approves a strategy to distribute those profits as a dividend. Per share of stock, a dividend is given. American businesses typically distribute dividends every quarter, month, or two years.The corporation discloses the dividend's amount, ex-dividend date, and payment date. To be eligible to receive a dividend payment (the "date of record"), an investor's stock must have been purchased at least two days prior to that date.Shareholders receive the dividend from the business.

Investors must own the shares by the ex-dividend date in order to receive the dividend, therefore this date is crucial. The dividend will not be paid to shareholders who buy the stock after the ex-dividend date. Due to their ownership of the shares on the ex-dividend date, investors who sell their stock after that date are still eligible to collect the dividend.

To solve the question :

Value after year 4 = (D4 × Growth rate) / (Required rate - Growth rate)

=(4.30 × 1.05) / (0.10 - 0.05)

=$90.3 (Approx).

Hence current price = Future dividend and value × Present value of discounting factor (rate%, time period)

= (6.5 / 1.10 ) + (17.5 / 1.10 )^2 + (22.5 / 1.10)^3 + (4.3 / 1.10)^4 + (90.3 / 1.10)^4 = 101.8895567

Hence, the current share price is $101.89 ( rounding off to 2 decimal places)

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When customer deposits money with the bank they are called as these deposits are also called as cash deposits?

Answers

Putting cash or checks into your savings account is known as a cash deposit.

Why are the deposits in the bank called deposits?

A cash deposit is when you put cash or checks into your savings account. You can deposit cash by going directly to the bank or using a Cash Deposit Machine. Transfers of funds into your account are also regarded as cash deposits.

The option to withdraw funds is available to everyone as needed. Deposits in bank accounts are known as demand deposits because they can be withdrawn at any time.

Demand and time deposits are the two different sorts. An ordinary bank and savings account is a demand deposit. A demand deposit account allows you to take money out at any time. Time deposits, such as certificates of deposit, are investments with a specified term and typically fixed interest rates.

Therefore, the statement is true.

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