An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports.
The answer to the question would be choice A.
Magazine photos are not a good representation of what a healthy person looks like because they often show pictures of people who has a skinny and or people who only has built or toned body without having to discuss other factors that should be considered such as mentally or psychologically. They are mostly focused on the physical appearance.
Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
The correct option is C.
The entrepreneur is the one who brings together all the factors of production and organize them into a working business entity. The entrepreneur provides the capital needed for the business, hire laborers to work in the business and provide all the equipment and the raw materials that the business requires.
