The gross profit is more inportant than the net profit
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: Discretionary fiscal policy
Explanation: Discretionary fiscal policy is a tool of fiscal policy used by the government to expand or shrink the economy as per the need. While performing such policy the government changes the level of tax collection or the amount of expenditure done on the economy.
It is a deliberate action by the policy makers and do not automatically accelerates while during inflation or deflation.
The correct answer to this open question is "the lost-horse forecasting."
In 2019, a marketing manager for New Balance’s Fresh Foam Zante shoe needs to forecast sales through 2021. She begins with the known totals for 2018 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like higher inflation and predicted moves by the competition. This type of forecast is referred to as <u>lost-horse forecasting.</u>
In this kind of forecast, you first take into consideration the last known value of the article that is going to be forecasted, writing all the factors that might affect it in the forecast. Then you have to evaluate if that would have a positive or negative influence or impact in the article. Finally, you project a feasible situation.
Answer: the options are added below:
A. market forces would quickly direct an economy back to full employment.
B. lower wages would cause the central bank to reduce the money supply and thereby prolong the recession.
C. lower wages would stimulate inflation and thereby prolong the recession.
D. powerful trade unions and large corporations made wages highly inflexible.
The correct option is D.
Explanation: A Trade Union is also known as a labour union and it is an association of workers in a particular trade, industry, or company that is created for the aim of negotiating improvements in wages and salaries, benefits, better working conditions, or social and political status through collective bargaining.
The view of Keynes is that the trade unions that have become powerful have, in conjunction with large corporations, made wages highly inflexible.
What this means is that they always make sure that there will be no supply of labor if the wages are low, therefore Keynes is of the view that lowering wages will not direct a recessionary economy back to full employment, rather, increasing the wages will ensure that the trade unions and large corporations supply labor and therefore increase employment.