Based on the scenario, one risk to this effort is cannibalization. Cannibalization in business is being
defined as a situation in which the new product that are released will likely
take the demand and sales of another existing product or the competition of
this new product that will result the overall sales to be reduced even if the
new product sales are increasing.
The expected monetary value of the investment of $1,000 in Company A is $800.
Data and Calculations:
Cost of investment in Company A = $1,000
Probability of doubling investment = 40%
Probability of losing investment = 60%
Expected monetary value of investment = $800 ($2,000 x 40% + $0 x 60%)
Thus, the expected monetary value of the investment is $800.
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In the long run, most economists agree that a permanent increase in government spending leads to <u>complete</u>.
Fiscal policy refers to the use of government spending and revenue collection (taxes or tax cuts) to affect a nation's economy. The 1930s Great Depression made the prior laissez-faire approach to economic management impractical, which led to the development of the use of government revenue expenditures to affect macroeconomic variables.
The British economist John Maynard Keynes' Keynesian economics, which postulated that changes in the amount of government spending and taxation have an impact on aggregate demand and the level of economic activity, serve as the foundation for fiscal policy.
A nation's government and central bank primarily employ fiscal and monetary policy to further its economic goals. These authorities can target inflation thanks to the combination of these strategies.
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The total amount of the dividends that Mr. James Hayes will receive in one year is $1785 total dividend.
The formula to get the total dividend is simply multiply the shares by stock issue per share. In this question we have 510 shares and stock issue pay $3.50 per share.
$3.50 per share * 510 shares = $1785 Total dividends
