When reviewing her display campaign, gina sees that her clickthrough rate is higher on weekdays from 10

When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and

scoundrel [369]

Answer: Keynesian Economic Theory

Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of Keynesian Economic theory.

6 0

2 years ago

Services that are available when you open a savings account

WARRIOR [948]

Monthly statements, investment options, and online banking services.

5 0

3 years ago

The stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be

V125BC [204]

Answer:

a) required rate of return = 10%

b)Also, if there is no growth then Return on Equity will be equal to the Required rate of return. Hence there won't be any change.

c) a cut in the dividend payout to 25% will have no effect or impact and as such the stock price will remain the same.

A complete elimination of dividend will not affect the stock price as well.

Explanation:

The question is in three parts and will be answered accordingly

a) The Required Rate of Return = (The Dividend Expected for the next year/ Current Price of Stock) + the Growth rate

First, we calculate the Dividend expected per share for the next year

=earnings per share x Dividends pay out ratio

=$2 /$10 = 20%

Secondly, we now calculate the return on equity as follows

= Expected Earnings Per share / Current Selling price

= $2 x (1-50%) = 10%

The third is to calculate the Growth rate =

Return on Equity x (1 - Dividend payout ratio)

= 20% x (1-50%) = 10%

Using this with the formula of required rate of return

= ($1 /$10) +10% = 20%

b) First the assumption is that all earnings were paid as dividend with no reinvestment and in this scenario, the lack of reinvestment will mean no growth. Also, if there is no growth then Return on Equity will be equal to the Required rate of return. Hence there won't be any change.

c) Because the Return on Equity is equal to required rate of return, it means a cut in the dividend payout to 25% will have no effect or impact and as such the stock price will remain the same.

A complete elimination of dividend will not affect the stock price as well.

6 0

3 years ago

Nature's way, a health food store, has just opened in a popular neighborhood shopping center next to silver's gym, a physical fi

Afina-wow [57]

The nature's way is relying on a location principle called retail compatibility. It is where they place their location in a more suitable environment that will fit the category of their business. It could be seen above as because their business is about promoting healthy foods, they are placed near the gym where people in the gym would be attracted to their business.

6 0

2 years ago

If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will hap

Nady [450]

Answer:

Marginal utility of the additional units will turn negative

Explanation:

As total utility has reached a maximum level, adding additional units of the same product will generate the total utility to decrease thus, the marginal utility of this additional products is negative as they made the utility of the consumer to decrease.

The diminish return theory state that:

The units increase utility at a decreasing rate and then, they reach a maximum of utility afterwhihc, additional units do not generate utility, they decrease it

4 0

3 years ago