The correct answer is Equality
Answer:
It is capital deepening (D)
Explanation:
Capital deepening typically represents an increase in the capital-labor ratio. This arises when there is infusion of additional capital(e.g technological improvement) into the production processes while work force is either kept constant or cut-down and thereby makes labor to be more productive.
Hence, as the capital-labor ratio increases, the marginal product of labor, i.e. the amount of product that can be produced by supplying one more unit of labor, increases because there are now more units of capital per worker.
Answer:
The pric eof the stock today us $77.12
Explanation:
The two stage dividend growth model of DDM will be used to calculate the price of the stock today. The formula for two stage growth model is:
Price today = D1 / (1+r) + D2 / (1+r)^2 + ... + [(Dn / r - g) / (1+r)^n]
Price today = 3 / (1+0.06) + + 3 * (1+0.05) / (1+0.06)^2 + [(3 * (1+0.05) * (1+0.02) / 0.06 - 0.02) / (1+0.06)^2]
Price today = $77.12
Answer:
Production of capital goods will generate future growth
Explanation:
Consumer goods are goods produced for consumption and cannot be used as inputs for the production of other consumer goods while capital goods are tangible assets such as plant and machinery which are used in the production of goods or services; and such goods and services still serve an input for the production of consumer goods.
Therefore, if a society decides to produce capital goods it will create economic growth because they are seen as economic capital. Countries usually pay attention to capital goods because they play a generating role in the improvement of the productive capacity of a country
Answer:
YTM (Annual( = 10.13%
Effective Annual Yield =10.40%
Explanation:
In order to calculate Yield to maturity, we need to use yield to maturity formula.
Formula: Yield to maturity = [C +(F – P)/n]/(F + P)/2
Where,
C = Coupon amount
F = Face value
n = number of periods
P = Current price
Data
C = 1000 x 8 % = 80
C (6months) = 80 x 6/12 = 40
F = $1000
n = 30 years
P = $800
Solution
YTM = 40 + (1000 – 800/30)/(1000 + 800)/2
YTM = 40 + (200/30)/(1800/2 )
YTM = 40 +( 200/30)/900
YTM = 5.068 semiannual
YTM (Annual( = 10.13%
Effective Annual Yield = 
Effective Annual Yield =10.40%
