Answer:
0.2
Explanation:
Data provided in the question
Marginal propensity to consume (MPC) = 0.80
Based on the given information, the marginal propensity to save is
As we know that
Marginal propensity to consume (MPC) + Marginal propensity to save (MPS) = 1
where,
Marginal propensity to consume (MPC) is 0.8
So, the marginal propensity to save is
= 1 - 0.8
= 0.2
Answer:
they help you focus on how to get to your long term goal, like how you focus on the drive not the destination.
Explanation:
Answer:
e.$23.60
Explanation:
Po = do (1 + g ) / ke - g
Here , ke = 16% , Do = current dividend paid = 2.8 , growth = 2.5%
Po = 2.8 ( 1+ .025)6/( 16 % - 2.5%)
=3.247/ 13.5% = 24.051
Therefore ,e. $23.60 is a correct whose since the 24.051 is closer to e.$23.60
Answer:
b. Maximize owner's wealth.
Explanation:
The owners wealth is usually measured by the financial behaviour of shares. In that sense we can find two reasons why is so important for the firm's management.
1. The managers recieve a greater compensation when the performance of the share increases their value. The managers have an incentive in order to keep the price of shares high.
2. Is a market oriented reason. For shareholders, consumers, banks and stakeholders, a good performance of the share is a positive signal for future investments, quality of the services and products and stability in the long run.