Government intervention in market prices: Price floors and Price ceiling
a. Use model of demand and supply, explain what happens when
government; imposes price or price ceiling?
b. Discuss what the reasons are and why the government sometimes
choose prices and the consequences of price control policies.
Opportunity cost is all about making choices and how you adequately and effectively manage it. What do you understand by the concepts of intra and inter temporal choice models in Managerial Economics, further as a fresh graduate of MSc in Managerial Economics, clearly demonstrate how intra and inter temporal choice models can make society incur an opportunity cost if not managed adequately and effectively ?
A man is required to pay 57500 pesos at the end of 15 days of 60000 pesos at the end of 60 days. Determine the rate of interest.
When alice went to theatre she had to choose between romantic and action movie.she decided to watch romantic movie.Did alice face any scarcity in this situation?economically,what conclusions can be withdrawn from alice choice of romantic movie over action movie?
Why is land and labour referred to as primary factor of production
The ABC stock has a beta of 1.4. The company just paid a dividend of $2.0, and the dividend is expected to grow at 6% per year, indefinitely. The expected market return is 14%, and the risk-free is 4%. The most recent stock price for ABC is $60. Calculate the cost of equity using the SML method.
JPM has the following capital structure. What is the WACC for the company?
Debt:
Bond 1. 400,000 bonds with a coupon rate of 6% (paid semi-annually), a price quote of 110.0 and have 20 years to maturity.
Bond 2. 300,000 zero coupon bonds (semi-annual compounding) with a price quote of 40.0 and 25 years until maturity.
Preferred stock:
600,000 shares of 4 percent preferred stock with a current price of $60, and a par value of $100.
Common stock:
12,000,000 shares of common stock, with a price of $80, and a beta of 1.3.
Market:
The corporate tax rate is 40 percent, the market risk premium is 9%, and the risk-free rate is 4%.
What will happen if both shareholders and board of directors agreed to purchase the equipment, provided that an alternative source of financing?
Daddy shares 45 sweets among his children, Joy, Ben and Troy in the ratio of 1:3:5 respectively. How many sweets do the kids get each, Troy, Joy and Ben (in that order)? [1] 15: 15: 15 [2] 5: 15: 25 [3] 45: 15: 9 [4] 25: 5: 15
After a promotion, Gwen’s annual salary was increased by 7.85% to R450 000. Determine his previous monthly salary and the monthly increase he will be getting. [1] Original salary of R34 770.51, with an increase of R2 729.49 per month. [2] Original salary of R34 556.25, with an increase of R2 943.75 per month [3] Original salary of R34 556.25, with an increase of R1 943.25 per month. [4] Original salary of R34 770.51, with an increase of R2 228.35 per month.