Answer:
cost of equity = 12.16 %
Explanation:
given data
annual dividend of $3.73
increases dividend = 3.40 percent annually
stock price = $43.96 per share
to find out
What is the company's cost of equity
solution
we will use here Gordon model for compute company's cost of equity that is
market value = 
........................1
put here value we get
43.96 = 
solve it we get
cost of equity = 0.121735
cost of equity = 12.16 %
Answer:
The correct answer to the following question is option B) .
Explanation:
Crowding effect refers to a situation where due to the increase in interest, there is a decrease in investment ( private investment spending ), which in turn leads to decrease in initial increase in investment. Here the interest rate have increased because of the expansionary fiscal policy implemented by the government, where they have increased their spending. A high magnitude of crowding effect can lead to decrease in the money supply in economy.
The decrease is a simple 2 dollars that is easy to find out. The demand is decreasing, as is the price to keep the demand atleast a bit steady. The decrease is a 12.5% of the total cash recieved.
Answer: fall; rise
Explanation:
The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.
The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.
