Answer:
$788.35
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 14% ÷ 4 quarters = 3.5%
NPER = 4 × 4 quarter = 16 years
PMT = $1,000 × 7% ÷ 4 quarters = $17.50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $788.35
Answer:
Cost of retained earnings = 0.13
Explanation:
given data
(D1) = $1.80
current price = $36
growth rate = 9 percent
solution
we get here Cost of retained earnings (Ke) that is express as
Cost of retained earnings = ( D1 ÷ P ) + g ................1
here P is price and g is growth rate
put here value and we get
Cost of retained earnings = (1.80 ÷ 36 ) + 0.08
Cost of retained earnings = 0.13
Answer:
Short run aggregate supply curve is flat ( A )
Explanation:
The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat
This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model, hence the price been constant, shows that in short run aggregate supply curve will be flat.
