Answer:
6.05 years
Explanation:
Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.
Payback working is attached with this answer please find it.
Answer:
Creative Sound Systems should report $15,9 million as net cash flows from financing activities.
Explanation:
Consider only items relating to financing activities.
Cash flow from financing activities
Proceeds from Sale of common stock $41.8 million
Purchased of treasury stock ( $25.9 million)
Net Cash flow from Financing Activities $15,9 million
Answer:
$32.14 per share
Explanation:
The computation of the current value of the single share is shown below:
= Current year dividend ÷ (Required rate of return - growth rate)
where,
Current year dividend is $2.25 per share
Required rate of return is 10%
And, the growth rate is 3%
So by placing these items, the current value is
= $2.25 ÷ (10% - 3%)
= $32.14 per share
Answer:
less than the government spending multiplier
Explanation:
Given :
Percentage spends by a households for the increase in the income = 75%
So the mpc = 0.75
Potential output = 600 billion arcs
The government multiplier is = ![$\frac{1}{1-0.75}$](https://tex.z-dn.net/?f=%24%5Cfrac%7B1%7D%7B1-0.75%7D%24)
![$=\frac{1}{0.25}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B1%7D%7B0.25%7D%24)
= 4
The tax multiplier is = ![$\frac{c}{1-c}$](https://tex.z-dn.net/?f=%24%5Cfrac%7Bc%7D%7B1-c%7D%24)
![$=\frac{0.75}{0.25}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B0.75%7D%7B0.25%7D%24)
= 3
Thus we see that the tax multiplier is less than the government spending multiplier.
The tires and the pedals and on the helmet