Answer:
r = 13.68%
Explanation:
We can use Gordon growth model to calculate the stock price.
P = Do x (1+g) / r - g
P: stock price (Given: $95)
Do: Last dividend paid ($5)
g: Dividend growth rate (8%)
r: required return (Missing value)
By inputting the number into the above equation, we have the following:
95 = 5 x 1.08 / (r - 0.08)
--> r = 13.68%
Unemplyment benefits are an example of a transfer payment. So, the correct option of this question is b.
Transfer payment is payment made or income received in which goods and services are not paid is known as transfer of payment. It is one-way payment. Transfer Payment is also known as Government transfer as it is given by the Government without goods and services being received in return. Transfer of payment is based on the concept of donor and recipient. A donor gives up something of value without receiving anything in return.
Unemployment benefits are given by the Government without receiving any goods or services in return so it is considered a transfer payment. The government collects money through taxes then this money is reallocated to citizens equally through welfare services.
Unemployment benefits are also provided by the Government therefore it is an example of transfer payment.
While other options are incorrect because rent, wages and government purchases dont have relation with transfer payment.
Therefore, the correct option of the given question is b i.e. Unemployment benefits.
You can learn more about transfer payment at
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Here is the answer. Suppose that consumption depends on the interest rate, how this alters the conclusions is that at any given level of the interest rate, national saving falls by the change in government purchases. You should also consider <span>what happens when government purchases increase. Hope this helps.</span>
Answer: c. $20,000
Explanation:
The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,
Loss on realization = Total Capital Balances after payment of liabilities minus - balance
Slotting in the figures therefore we have,
Loss on realization = $40,000 + $70,000 - $80,000
= $30,000 was the total loss on Realization
Seeing as Antonio and Barbara are partners who share income in the ratio of 1:2 we allocate to Barbara as follows,
Barbara = $30,000 * 2/(1+2)
= $20,000
Therefore option C is correct.
Answer:
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