In the forbes article, kotlikoff explains that saving and investing decisions should be guided by strategies that maximize expected utility.
Saving can mean a variety of things to various people. Some believe that it requires making a bank deposit. Investing in stocks or making contributions to a retirement plan are some more definitions. Conversely, according to economists, saving is the act of using less of a specific amount of resources today in order to consume more later. So, the choice to delay consumption and put that delayed consumption in an asset is what is meant by saving.
Saving is either deferred consumption or revenue that is not spent. Putting money aside in various accounts, such as a savings account, a pension account, an investment fund, or in cash, counts as a saving strategy. In order to save, expenses like recurrent charges must be reduced.
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Answer:
D. are used up in production
Explanation:
Raw materials can be seen as the "ingredients" required to produce a good and, thus, are consumable (used up in production). Physical capital refers to lasting goods that are assist the production process like buildings or machinery and are not consumable.
When it first gets wet then later down the way u wish then let it dry
Answer:
e. Short-term debt securities such as Treasury bills and commercial paper.
Explanation:
- A money market is an organized exchange market and were the participant can lend and borrow short terms high quantity debt security with an average maturity with less than and year. And thus enables the government and other institutions of the short terms securities.
The price of any security is nothing but the PV of Cash flows that are discounted at the required rate of Ret(Ke )Price = D1 / [ Ke - g ] = $ 1.5 / [ 16 % - 3 % ] = $ 1.5 / [ 13 % ] = $ 11.54.So, the Price of Stock today is $ 11.54.
The dividend rate of growth is the annualized share rate of growth that a selected stock's dividend undergoes over an amount of time. several mature firms ask to extend the dividends paid to their investors on a daily basis. Knowing the dividend growth rate may be a key input for stock valuation models identified as dividend discount models.
Being ready to calculate the dividend growth rate is important for the victimization of the dividend discount model. The dividend discount model is a kind of security-pricing model. The dividend discount model assumes that the calculable future dividends–discounted by the surplus of internal growth over the company's estimated dividend growth rate–determine a given stock's price.
If the dividend discount model procedure ends up in the next variety than the current price of a company’s shares, the model considers the stock undervalued. Investors who use the dividend discount model believe that by estimating the expectation of money flow within the future, they'll realize the intrinsic value of a specific stock.
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