Answer:
An increase in income and expenses
Explanation:
When the main provider of a family dies and he/she doesn't have any type of life insurance, then the whole family's economy will suffer. Their total income will probably plummet. Besides losing John's income, his family must all the expenses related to his death, e.g. burial. As a terrible consequence, John's family will see their standard of living decrease.
Answer:
C. Price changes in markets provide suppliers incentives to supply goods to markets.
Explanation:
Price changes in the market has two perspective,
- increase in price, will increase the productivity for retailers,
- decrease in price, will decrease the productivity for retailers.
With increase the retailers expect to earn more, and with decrease the retailers expect to earn less.
This is a normal market condition and scenario, this does not link to any kind of political or legal environment, although the change in price might be due to political or legal policies, but the increase or decrease in productivity, is not related to any political or legal influence.
The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value
<h3>What is
bond?</h3>
A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.
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Answer:
a. <u>Value of the stock without growth rate</u>
= D1 / (r - g)
= $5 / (10% - 0)
= $5 / 10%
= $5 / 0.10
= $50
b. <u>Value of the stock with growth rate</u>
= D1 / (r - g)
= $5 / (10% - 5%)
= $5 / 5%
= $5 / 0.05
= $100