i belive it is (D) bond so if it is not i sorry
Answer:
$53.11
Explanation:
The computation of the current value of the common stock is shown below
Year Cash flow Discount rate at 8% Present Value
1 $2.5 0.92593 $2.31
2 $2.5 0.85734 $2.14
3 $2.5 0.79383 $1.98
4 $2.5 0.73503 $1.84
4 $61 0.73503 $44.84
Total $53.11
The discount is come from
= 1 ÷ 1 + 0.08^1
The same is applied for other years
We simply multiplies the dividend with its discount rate so that the present value or the current value could arrive
I would say this would be true as if extra capital like an electric shovel in an open pit mine resulted in a fall of output then of course it should be questioned why that occurred since it is a result that is counterintuitive ie does not make sense as one would expect an increase in capital would result in an increase in output.
Answer:
B) There is an inflationary gap, and contractionary fiscal policy is appropriate.
Explanation:
One of the macroeconomic cases is inflationary gap. It means that the difference between the current level of real gross domestic product (GDP) and the predicted or forecasted GDP that would be experienced and achieved if an economy is at full employment. It could be claimed that when the demand for goods and services gets over the production in the factors such as: higher levels of overall employment, increased trade activities or increased government expenditure.
In order to overcome this gap, the contractionary fiscal policy must be considered. The mechanism of that policy is to increase the taxes decrease the government expenses due to inflationary pressures. This policy consequently will affect the level of consumption and private investment, respectively, these also will decrease the real GDP.
Other concept of macroeconomics is recessionary gap. In comparison to inflationary gap, this concept indicates the economy operating at lower level than its full equilibrium level, in turn, the level of real GDP is also less than full equilibrium level. We used to see this situation when the economy was intending to recess.
In order to overcome this gap, the expansionary fiscal policy will work well. Because of decreasing taxes and increasing government expenditures, the recessionary gap can be fought anymore. Since the taxes decreases, the business will revive and the confidence to the investment will increase, as a result the GDP will rise. Moreover, the growing government expenditures will stimulate the GDP to accrue.
To summarize, according to the question we need the gap in which the economy is above of potential, this means inflationary gap. Following this finding, the contractionary fiscal policy will be solution.
The activity that causes the incurrence of the cost should be the basis for assigning variable costs of service departments to consume departments.
Variable costs are costs incurred when the number of goods or services produced by business changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense. Fixed and variable costs form the two components of the total cost.
Variable costs are costs that change with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."
Fixed costs typically cost the same amount each month (rent, mortgage payments, car payments, etc.), while variable costs change each month (eating out, medical bills, groceries, or store purchases). ). . .
Learn more about variable costs here
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