When consumers and businesses have greater confidence that they will be able to repay in the future, <u>the quantity demanded of financial capital at any given interest rate will shift to the right.</u>
Answer:
Yes it is
Explanation:
Because Prediction of cause and effect is important for the good economic model. If the economic model observe the cause and effect relationship, then it can be helpful to anticipate from the similar situation in future. For example, recession is causes recession. If the economic model observe it, then it can be helpful to control recession if t occurs in future.
Answer:
Computation of contribution to retirement fund
Annual payment that the investor wants to receive after retirement = 13000
Number of years after retirement = 15
Interest rate = 0.11
Value of the fund at 12th year (Use Present Value Formula) = -93,481.30
Years remaining to retirement = 10
Interest rate = 0.09
Annual contribution upto retirement (Use PMT Formula) = -14,566.27
Answer:
current price of Goodell Corporation stock is $48.26
Explanation:
given data
annual dividend = $1.75
expected to increase 1 year = 27.5 percent
expected to increase 2 year = 13.8 percent
expected to increase per year = 5 percent
required rate of return = 10 percent
solution
we get here first dividend that is
D1 = 1.75 × (1.275) = 2.23 ...............1
D2 = 2.23 × (1.138) = 2.54 ...............2
D3 = 2.54 × (1.05) = 2.67 ...............3
and
year 2 price will be
P2 = D3 ÷ (R – g) ...............4
P2 = 2.67 ÷ (0.10 - 0.05)
P2 = 53.4 ...............5
so current price will be
P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2
P = $48.26
Answer:
$4,250
Explanation:
The computation of the operating income or EBIT is shown below:
Earning before interest and taxes = Sales reported - operating cost other than depreciation - depreciation expense
= $12,500 - $7,250 - $1,000
= $4,250
We simply deduct the operating cost and the depreciation expense from the sales reported to arrive the earning before interest and taxes
All other information which is given in the question is not relevant. hence, ignored it
