Answer:
54.9%
Explanation:
To calculate your debt to income ratio, you must add all your monthly debt payments and divide that number by your monthly gross income:
Timothy's total monthly debt payments = auto loan ($750) + student loan ($390) + mortgage ($1,700) + credit card ($125) = $2,965
Timothy's debt to income ratio = $2,965 / $5,400 = 54.9%
Timothy has too many debts, a good debt to income ratio shouldn't exceed 36-40%.
Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.
In an open economy, expansionary fiscal policy increases in government spending can raise interest rates, which raises the dollar's value and pushes out net exports is the reason of effectiveness Expansionary monetary policy.
<h3 /><h3>What is Expansionary monetary policy?</h3>
Expansionary policy, often known as loose policy, is a macroeconomic policy aimed at boosting economic growth.
Monetary or fiscal policy can both be used to expand the economy or a combination of the two.
It is part of Keynesian economics' overarching policy prescription for reducing the negative effects of economic cycles during slowdowns and recessions.
Thus, increases in government spending can raise interest rates is the reason of effectiveness Expansionary monetary policy.
For further details about the Expansionary monetary policy, click here:
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Answer:
Current price : $24.05
Price in 3 years : $27.05
Explanation:
The Current stock price of Herjavec Co will be determined by the formula given below;
Po = [Do (1 + g) ] / (r - g)
Po = Current price
Do = Current dividend
r = Rate of return
g = growth of dividend
Po = ($1.85 * 1.04) / (0.12 - 0.04)
Po = $1.924 / 0.08
Po = $24.05.
The stock price of Herjavec Co after 3 years will be determined by the formula given below;
P3 = Do (1 + g)^4 / (r - g)
P3 = [$1.85 * (1.04)^4] / (0.12 - 0.04)
P3 = $27.05
