Your money will double in approximately 11 years and quadruple in approximately 22.
Use the Rule of 72 for doubling (72/interest rate= number of years to double) and the Rule of 144 to quadruple (144/interest rate= number of years to quadruple).
Answer:
The correct answer is letter "B": the purchase of new capital.
Explanation:
In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options.
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Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.
Free trade refers to a condition in which a country does not attempt to limit what its citizens can buy from or sell to another country.
<h3>Free trade</h3>
They can extend new markets, increase gross domestic product, and invite new acquisitions.Countries must negate the domestic advantages of free trade agreements with their results.
Under a free trade policy, goods and services can be purchased and sold across international borders with little or no government tariffs, quotas, grants, or prohibitions to inhibit their exchange. The idea of free trade is the opposite of economic isolationism.
To learn more about economic isolationism visit the link-
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Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
Publishers face the economy’s choices in products they want/need and on how the ways of selling it and where to sell it
