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g100num [7]
4 years ago
12

An increase in investment spending caused by higher expected rates of return will

Business
1 answer:
alekssr [168]4 years ago
3 0
<span>Spending more on investments in hopes of high returns will increase long term savings and decrease short term spending thus affecting the economy by affecting the law of supply and demand. The demand side of the equation would be affected as more money is put into or spent on savings.</span>
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Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percen
MAXImum [283]

Answer:

14.6%

Explanation:

we can use the Gordon growth  model to determine the market rate of return (or required rate of return for this stock or similar ones):

current stock price = dividend / (required rate of return - growth rate)

  • current stock price = $26.91
  • growth rate = 3.8%
  • dividend in 1 year = $2.80 x 1.038 = $2.9064

$26.91 = $2.9064 / (RRR - 3.8%)

RRR - 3.8% = $2.9064 / $26.91 = 10.8%

RRR = 10.8% + 3.8% = 14.6%

7 0
3 years ago
Read 2 more answers
If the government decides to build a new highway, the first step would be to conduct a study to determine the value of the proje
Nikitich [7]

Answer:

D. Cost-benefit analysis

Explanation:

Cost-benefit analysis can be defined as a strategic approach which typically involves measuring and estimating the overall cost of a project, as well as all possible profits to be derived.

This ultimately implies that, the cost-benefit analysis helps business owners or project managers to weigh the benefits associated with a particular project and how to decide on what decisions (actions) to be taken.

Hence, if the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. Therefore, this study is generally referred to as cost-benefit analysis because  involves weighing the incremental benefit against the incremental cost of a decision.

In conclusion, when individuals such as decision-makers or project manager, is implementing and executing a project, it is very essential and important that he does a cost-benefit analysis; by weighing the overall and potential benefits or gains to be derived from that project in comparison with the costs of execution. Thus, when the incremental benefits is greater than the incremental cost of the decision, then it is logical and safe to make the move or do it.

8 0
4 years ago
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,
VikaD [51]

Answer:

$34,600

Explanation:

The computation of beginning retained earnings balance is seen below:

But we know that;

Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid

$51,600 = Beginning retained earnings + $21,100 - $4,100

Beginning retained earnings = $51,600 - $21,100 + $4,100

Beginning retained earnings = $34,600

4 0
3 years ago
What law says that borrowers must receive a good faith estimate of the closing costs within three business days of the loan appl
Dmitry_Shevchenko [17]

The answer is the Real Estate Settlement Procedures Act or RESPA. This act was intended to defend possible property holders and allow them to become more intelligent consumers. RESPA necessitates that creditors provide bigger amounts of information to potential borrowers at certain points in the loan settlement process. It also forbids the innumerable parties involved from paying kickbacks to each other.

5 0
4 years ago
Hello guys I'm Filipino ​
zlopas [31]

Answer: Nice, today is my birthday :D

Explanation:

I’m mexican :)

4 0
3 years ago
Read 2 more answers
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