You shouldn't add the stock to your portfolio.
This statement is true.
Explanation:
An undervalued stock is characterised as an asset that sells significantly below the supposed intrinsic value at a profit.
For Example, if the stock sells for $50, but on the premise that future cash flows are expected, it is an undervalued stock.
If you pay excessively, you will lose part or all of your earnings. The same happens when you purchase a stock below its current market value. Purchasing an inflated stock ensures you that the chances of losing money even though it is not profitable for the company.
The Market for Hotel Rooms. Suppose with no tax the equilibrium price is $110 and the equilibrium quantity is 250. If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal _____ and the new equilibrium quantity will equal
Answer:
130, 150
Explanation:
Here, in the question the graph is missing. So, in the attachment the graph is attached.
Equilibrium is the state or condition, where there is balance or stable situation, which means that the opposing forces cancel each other force out and no changes or variations happen or occur.
In short, it is defined as the state where the quantity demanded is equal to the quantity supplied, where there is no loss to the business.
From the graph, we could analyze that the new equilibrium price is 130 and at this price, the new equilibrium quantity is 150.
Assume that an economy described by the Solow model is in a steady state with output and capital growing at 3 percent, and labor growing at 1 percent. The capital share is 0.3. The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are:____________-
A) 0.3 percent, 0.7 percent, and 2 percent, respectively.
B) 0.9 percent, 0.7 percent, and 1.4 percent, respectively.
C) 0 percent, 1 percent, and 2 percent, respectively.
D) 1.8 percent, 0.3 percent, and 0.9 percent, respectively.
Answer:
The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are 0.9%, 0.7%, and 1.4%, respectively.
Explanation:
Given
Capital growing = 3%
Labor growing = 1%.
Capital share = 0.3
Assuming the economy is in a steady state;
The growth accounting equation is as follows:
GDP Growth = Capital Growth*(Weight of Capital Contribution) + Labor Growth*(Weight of Labor Contribution) + Technological Progress.
Contribution to Growth of Capital = 3% * 0.3 = 0.9%
Contribution to Growth of Labour = (1 - 0.3)% = 0.7%
Total Factor Productivity = 1 + 0.3 + 0.1 = 1.4%
Answer: B. 0.9 percent, 0.7 percent, and 1.4 percent, respectively
Explanation:
The growth accounting equation measures how changes in the Gross Domestic Product (GDP) are influenced by productivity levels due to changes in available capital, labor, and technology.
Output and capital growth = 3%
Labor growth = 1%
Capital share = 0.3
Contribution to capital = capital growth × capital share = 3% × 0.3 = 0.9
Contribution to labor = 1% - 0.3= 0.7
Contribution to total factor of productivity = 1 + 0.3 + 0.1 = 1.4
Martha claims that she has been assigned marginal job roles or light workloads that don't lead to promotion. Which of the following terms accurately explains the type of discrimination she has been subjected to?
A) intimidation
B) sexual harassment
C) exclusion
D) inclusion
E) insult
The yurdone corporation wants to set up a private cemetery business. according to the cfo, barry m. deep, business is "looking up." as a result, the cemetery project will provide a net cash inflow of $107,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. the project requires an initial investment of $1,600,000. a-1 what is the npv for the project if yurdone's required return is 12 perce
Answer:
Net Present Value for this project is -411,111.11
Explanation:
Net Present Value is the difference between present values of future cash flows and present value of future cash outflows. Since, the outflows are paid today, we don't need to discount them.
Since we have indefinite period of time and expected net cash inflow of 107,000$ after first year, where it is expected to grow annually at 3%, we can use following formula:
P V = F V / i-g, where g is annual growth rate of future cash inflow. Therefore, we will have P V = 1,188,888. In order to calculate N P V we need to calculate the difference between P V and initial investments. Finally, we get -411,111.11
Calculating the NPV of the Yurdone Corporation's proposed cemetery business using the growing perpetuity formula shows a negative NPV of -$411,111.11, indicating that it may not be a profitable investment at a 12% required return.
The Yurdone Corporation is considering setting up a private cemetery business, expecting a net cash inflow of $107,000 in the first year, with cash flows projected to grow at a rate of 3% annually. The initial investment required is $1,600,000. To calculate the project's Net Present Value (NPV) given a required return of 12%, we use the formula for a growing perpetuity: NPV = (Cash Flow Year 1 / (Required Return - Growth Rate)) - Initial Investment. Thus, NPV = ($107,000 / (0.12 - 0.03)) - $1,600,000 = $107,000 / 0.09 - $1,600,000 = $1,188,888.89 - $1,600,000 = -$411,111.11. Therefore, given a required return of 12%, the NPV for the Yurdone Corporation's cemetery project would be negative, suggesting that this may not be a viable investment under these conditions.
Suppose the economy is initially in long-run equilibrium then aggregate demand rises. What will happen in the long run?
Answer with Explanation:
Once the aggregate demand rises, this means that the consumers have the capacity or are willing to purchase more of the goods and services. Once this happens for a prolonged period of time, inflation will result. This means that the prices of goods will increase at the same quantity being offered.
The increase in the prices of goods happens because once the demand of the consumer increases, the producers would try their best to meet that demand. This is effective in the short-run. However, it is hard to accommodate such huge demand in the long-run. So, this mean that the producers will have to increase the price level of the goods. This will then lower the aggregate expenditures of the consumers.
So, this explains the answer.
If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in the ________ stage of the product life cycle.
The described scenario indicates that the product is likely in the 'decline' stage of its life cycle. This is a part of a strategy to minimize losses due to a product no longer being profitable or competitive. This stage can also lead to an 'exit' scenario in business.
Explanation:When a company is eliminating certain models of a product and reducing its expenditures, it is most likely that the product is in the decline stage of the product life cycle. This is a stage when a product's sales decline and it may no longer be profitable or competitive in the market. Companies typically reduce production, eliminate certain models, and cut back on expenditures such as marketing and distribution. This is done to minimize losses and to transition resources to newer products or other areas of the business. This stage is part of a long-run process of reducing production in response to a sustained pattern of losses, which in business terms is often called exit.
Learn more about Product Life Cycle here:https://brainly.com/question/33498941
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The Jackson Company incorrectly omitted $100,000 of merchandise from its 20X1 ending inventory. In addition, a merchandise purchase of $40,000 was incorrectly recorded as a $4,000 debit to the purchases account. As a result of these errors, 20X1 before-tax income is:___________.1. Overstated by $136,0002. Understated by $136,0003. Overstated by $640004. Undersated by $64000
Answer:
Option "4" is the correct answer to the following statement.
Explanation:
Step 1: Company omitted $100,000 from Stock account, it will Increase Cost of goods sold by $100,000
and also Profit by $100,000
Step 2: Purchase account debited by $4000 Would decrease the Cost of goods sold by ($40,000 - $4,000) $36,000 and decrease Profit by the same amount.
Total understate income = $100,000 - $36,000
= $64,000