Answer: $32.70
Explanation:
According to the dividend discount model, the value of the stock today is the present value of the dividends to be paid plus the present value of the value of the dividend from when the company starts maintaining a stable growth rate which in this question in year 2.
= (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
Value at year 2 = Year 3 dividend / ( required return - growth rate)
= ( Year 2 dividend * (1 + g)) / ( required return - growth rate)
= (2.46* ( 1 + 0.039)) / ( 0.113 - 0.039)
= $34.54
Value today = (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
= 3.15/1.113 + 2.46/1.113² + 34.54/1.113²
= 2.83 + 1.99 + 27.88
= $32.70
Answer:
The answer is B:
The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.
Explanation:
In the circular flow of income, Keynesian equilibrium obtains when The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.
Where S = Saving
T = Taxes
Imports = (M)
I = Investments
G = Government spending
X = Exports
An equilibrium is approached when there is a balance between the savings, taxes and imports and investments, government spendings and exports.
The equilibrium is the middle, or the point where the lines meet
So when we look at the point at which they lie at, we can see that it isn't exactly eight and it isn't exactly ten, it's in between those two numbers
So the answer is nine dollars
Answer:
a. True
Explanation:
This statement is correct, as global institutions were created with the objective of regulating global business from international treaties, which implemented a set of rules and regulations that must be followed by all organizations in a global market, as a form of protection to organizations, society and the environment, such as legislative and economic changes, crises and possible negative impacts inherent to organizations in a global business system.
