In referring to "the type of fiscal policy changes in question," the author recognizes that <span>the tax multiplier is different from the government purchases multiplier. This question is based on information found in the text regarding a Federal Reserve publication. A tax multiplier is negative in value because as taxes </span>decrease, the demand for goods and services will increase.
Answer:
$74.58
Explanation:
The price of share of the Bretton Inc in the given question shall be the present value of all the dividends associated with this share in the future years.
Present value of year 1 dividend=3.31(1+13%)^-1=$2.93
(3.15*1.05)
Present value of year 2 dividend=3.48(1+13%)^-2=$2.73
(3.31*1.05)
Present value of year 3 dividend=3.65(1+13%)^-3=$2.53
(3.48*1.05)
Present value of year 4 dividend=3.83(1+11%)^-4=$2.52
(3.65*1.05)
Present value of year 5 dividend=4.02(1+11%)^-5=$2.39
(3.83*1.05)
Present value of year 6 dividend=4.22(1+11%)^-6=$2.26
(4.02*1.05)
Present value of all the cash flows after 6 year=$59.22
[4.22(1+5%)/(9%-5%)]*(1+11%)^-6
Price of share $74.58
Understanding the question is key. Giving options of solutions with firm examples. Ending with a request for questions
Planned economies rely heavily on the central government to make most economic decisions. A planned economy is another way to describe a command economy. Resoures are allocated to where the government believes the investments are most needed. Since the government makes a lot of decisions within a planned or command economy, they rely heavily on the central government to help them make decisions.
Allows consumers to buy goods and services at a lower cost
