Answer:
$31.9211
Explanation:
We discount the future two year dividends at the required rate of return
and solve for the present value of the infinite series of dividends growing at 3.6% with the dividend grow model:
PV 33.6
Then we discount this by the two years ahead of time these cashflow start and add them to get the PV of the stock which is their intrinsic market value
Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.
We have
Price of the Ferrari nine years from now (Future Value - FV) $215000
Expected Rate of return on the mutual fund (r) 10.8%
Time until I turn 30 (n) 9 years
We can calculate the Present Value (PV) or the money to be invested today as
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Cyclical unemployment: rises during a recession
<h3><u>What is Cyclical unemployment ?</u></h3>
- Cyclical tendencies in growth and output, as shown by the GDP, that take place throughout the economic cycle are what are meant by cyclical unemployment.
- Cyclical unemployment is defined by economists as the situation that arises when firms don't have enough demand for labor to hire all people who are searching for work at that particular stage of the business cycle.
- There may be a commensurate decrease in supply output to make up for a loss in demand for a good or service.
- To fulfill the lower norm of production volume, fewer workers are needed when supply levels are cut.
- The corporation will discharge any employees who are no longer required, which will result in their unemployment.
To learn more about Cyclical unemployment, refer to:
brainly.com/question/14227610
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Answer:
Demand for chocolate bars increases.
Explanation:
There are two goods: jelly beans and chocolate bars. They are substitute goods. We know that there is a positive relationship between the price of one good and the demand for other good. The substitute goods are generally have a positive cross price elasticity of demand.
This means that as the price of jelly beans increases then as a result the demand for chocolate bars increases even if the price chocolate remains the same.