Based on the useful life and the appraised age of the house, the effective age is <u>3 years.</u>
<h3>What is the effective age?</h3>
- It is the age of a structure based on its physical condition and upkeep.
- It is found by subtracting the remaining economic life from the economic life of the structure.
As a result of the physical condition and upkeep of the property, the appraiser estimates it to be equivalent to a 3 year old home. This is therefore the effective age.
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Answer:
20.875
Explanation:
18+24+17+21+24+16+29+18=167/8=20.875
Answer:
Explanation:
Using the dividend growth model = Do(1+g)/Ke-g
Do=1.62$
G=4%
Ke=12%
Do(1+g)/Ke-g = 2.0736(1+4%)/12%-4%
= 1.6848
/8%
= 53.916
Year Year Year Year Year
0 1 2 3 4
20% 20% 20% 20%
Dividend 1 1.2 1.44 1.728 2.0736
Ifninty dividend 55.91*
Total Cashflows 1 1.2 1.44 1.728 55.98
Pres.Val @12% 1 1.07142 1.14795 1.22995 35.583
Value of stock 40.030
Answer:
By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.
Explanation:
It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.
Answer:
C. Producers will prevent the price level from increasing and hurting their sales.
Explanation:
When the FED buys securities from the public, the money supply increases and this raises the general price levels.
When general price level increases, workers would demand higher wages and the prices of goods and services would rise.
I hope my answer helps you