Answer:
1. economic growth;
2. the size of the economy
Explanation:
According to the neoclassical standpoint on issues relating to macroeconomics, it is believed that, over a long period of time, the economy will vary around its potential GDP and its natural rate of unemployment.
Therefore, the size of the economy is defined by potential GDP, and wages and prices will adjust in an intelligent manner so that the economy will move back to its potential GDP level of output.
Hence, The neoclassical view holds that long-term expansion of potential GDP due to ECONOMIC GROWTH will determine THE SIZE OF THE ECONOMY
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Answer:
$463.67 million
Explanation:
The computation of the expected terminal enterprise value is shown below:
Terminal Enterprise value is
= Free cash flow × (1 + growth rate) ÷ (Weighted average cost of capital - growth rate)
= $26 million × (1.07) ÷ (0.13 - 0.07 )
= $27.82 million ÷ 0.06
= $463.67 million
We simply applied the above formula to determine the expected terminal value
Answer:
Deferred tax asset $174000
Explanation:
The computation of the amount of deferred tax asset or liability for the year 2021 is shown below:
= Income in the year 2021 × enacted tax rate for the year 2021
= $870,000 × 20%
= $174,000
By multiplying the income for the year 2021 with the enacted tax rate for the year 2021 we can get the deferred tax asset and the same is shown above
