Answer:
option (c) $19.47
Explanation:
Data provided in the question:
Annual divided just paid, D0 = $2.20
Growth rate = 2.2% = 0.022
Required rate of return = 14% = 0.14
Now,
Current price of the share = [ D0 × ( 1 + g )² ] ÷ [ r - g ]
= [ $2.20 × ( 1 + 0.022 )² ] ÷ [ 0.14 - 0.022 ]
= $2.2978648 ÷ 0.118
= $19.47
Hence,
The answer is option (c) $19.47
Answer:
B) False
Explanation:
One of the main characteristics of monopolistic competition is that many suppliers sell products that are different from one another, so they cannot be considered perfect substitutes. For example, restaurants usually operate under monopolistic competition since they all offer similar services but at the same time they are all different.
So if you like variety, then you should like monopolistic competition.
Answer:
a. higher productivity, and another unit of capital would increase output by more than before.
Explanation:
The productivity will be higher as more saving will increase investment.
Therefore, the economy will be more productive as there is more capital per worker.
Is important to comment that due to <u>diminished return theory</u> each additional unit of capital would increase this productivity by a fewer amount. But, this <u>applies on the short run</u>, when the other factors don't change.
Therefore, option a is the correct as the capital increase is not faced agains a bottleneck of the other factor (labor, business and land)
Answer:
Operating Cash flow is $19,440
Explanation:
Operating Cash flow
Sales = $38,530
-Costs = $12,750
-Depreciation <u>= $2,550</u>
Operating Income = $23,230
-Interest Expense = $1,850
Income before Tax = $21,380
-Tax <u>= $4,490</u>
Net Income = $16,890
Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working Capital
Operating Cash flow = $16,890 + $2,550 - 0
Operating Cash flow = $19,440
Answer:
1. An Australian company buys steel from a US Firm
Account: Current Account
Direction of Flow: Payment to foreigners
2. The federal reserve buys $252 billion worth euros
Account: Financial Account
Direction of Flow: Payment to foreigner
3. Profit earned by a US based mining company operating in Mexico
Account: Current account
Direction of Flow: Payment from foreigners
4. An English company buy a US confectionary manufacturer
Account: Financial Account
Direction of Flow: Payment from Foreigners