Please type the answer by computer so i can see it clearly thank you!! A well-known network of personal health and beaut
Posted: Wed Jul 06, 2022 6:15 am
Please type the answer by computer so i can see itclearly thank you!!
A well-known network of personal health and beauty stores, LalaBeauty offers a wide selection of items for infant, skin, andpersonal care. It is a corporation that is listed on the Hong KongStock Exchange. Assume that a business will always make a profit of$1,000,000, and that all of this profit will be paid out asdividends to shareholders. Additionally, the business has issued200,000 shares to stockholders overall.
Question:
1(a) What will be the price of each share if the interest rateis 5% per annum?
1(b) Alice is one of the investors of the stock market.Originally, she has no intention of buying Lala Beauty’s shares.However, after its share price has risen quite sharply in onemorning, she decides to buy some shares. Is Alice’s action anexception to the law of demand?
1(c) Boris is a speculator who tries to ‘buy low and sell high’to make a profit. If he succeeds in making a profit out of hisspeculative activities, by using demand and supply diagrams, showhow will his actions affect the demand for OR supply of shares inthe stock market during (i) periods when he thinks current pricesare relatively low? (ii) periods when he thinks current prices arerelatively high? Besides, do you think speculators (who aresuccessful in making money) will make share prices more stable orless stable?
A well-known network of personal health and beauty stores, LalaBeauty offers a wide selection of items for infant, skin, andpersonal care. It is a corporation that is listed on the Hong KongStock Exchange. Assume that a business will always make a profit of$1,000,000, and that all of this profit will be paid out asdividends to shareholders. Additionally, the business has issued200,000 shares to stockholders overall.
Question:
1(a) What will be the price of each share if the interest rateis 5% per annum?
1(b) Alice is one of the investors of the stock market.Originally, she has no intention of buying Lala Beauty’s shares.However, after its share price has risen quite sharply in onemorning, she decides to buy some shares. Is Alice’s action anexception to the law of demand?
1(c) Boris is a speculator who tries to ‘buy low and sell high’to make a profit. If he succeeds in making a profit out of hisspeculative activities, by using demand and supply diagrams, showhow will his actions affect the demand for OR supply of shares inthe stock market during (i) periods when he thinks current pricesare relatively low? (ii) periods when he thinks current prices arerelatively high? Besides, do you think speculators (who aresuccessful in making money) will make share prices more stable orless stable?