The three stances are the neutral fiscal stance, which occurs when the budget is well balanced and the economy is in equilibrium; then there's the<span> expansionary fiscal stance in which the spending exceeds tax revenues, which occurs usually during hard periods such as recessions; and the final stance is </span><span>the contractionary fiscal stance, in which the government spends less than what the tax revenue is. </span>
Answer:
A. the federal government spending more money to build more infrastructure and D. the federal government providing tax refunds to many taxpayers
Explanation:
Please see attachment.
Answer:
20.2 or 20.2:1
Explanation:
EPS = Net Income / common shares outstanding
EPS = $885,000 / 177,000 shares
EPS = $5
Market price per share = $101
Price-earnings ratio = Market price per share / EPS
Price-earnings ratio = $101 / $5
Price-earnings ratio = 20.2 or 20.2:1
Answer:
The answer is b. Up to $4 million.
Explanation:
It is critical to recognize that $3 million already spent on developing the product is the sunk cost, which is irrelevant cost that should not be included in the budget further spend for the new product.
As the new product is expected to generate a revenues of $4 million, the further cost should be spent on the new product development should not be exceeded the $4 million.
Thus, the answer is b. Up to $4 million is the correct choice.
Answer:
$29.71
Explanation:
Value of Stock can be determine by Dividend Valuation method.
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is determined by calculating present value of future dividend payment.
In this question the Dividend payment is $2, growth rate is 4% and required rate of return is 11%.
Formula for Valuation:
Value of Share = Dividend (1 + g) / (Rate of return - Growth rate)
Value of Share = $2.00 (1 + 4%) / (11% - 4%)
Value of Share = $2.00 (1.04) / 7%
Value of Share = $29.71