Answer:
required return on the company's stock = 11%
Value of each share =$88.51
Explanation:
The constant growth model states that . If ke is made subject of formular, .
This implies that ke= dividend yield plus growth rate = 6%+5%=11%. Therefore the required return on the company's stock = 11%
Values of each share = .
where
and P3=
Value of each share = = 88.51
Please give me the image for more information.
Answer:
The export supply curve would shift upward as the demand for the exported goods will decrease, the supply of goods will decrease and the price of goods will increase (become more expensive to export). As a result of the trade war intensifying, the future of the exchange rate will increase as the market for exporting goods will become more volatile in trade. When the supply of goods decrease, it pushes up the price to purchase the export goods and will have a negative impact on the rate at which the exported goods are exchanged at. That means the exchange rate (like taxes and levies on export) will increase in price.
Explanation:
To understand this concept, you have to understand the definition of an export supply curve. An export supply curve is the value of the difference of the quantity to supplied (produced) to export less the the quantity demanded by consumers (who want imported goods).
Refer to the illustrated graph attached to understand the above information.
Answer:
The correct answer is <em>an expansionary monetary policy would DECREASE interest rates and thus REDUCE the extent of crowding out.</em>
Explanation:
Expansive monetary policy is a type of monetary policy that is mainly characterized by trying to stimulate the size of a country's money supply. Those responsible for its control are generally a central bank or other similar economic power.
When individuals prefer to save money instead of spending it or investing it, aggregate demand is very weak, which can lead to recessions. Through the performance in financial markets with expansive monetary measures, we seek to move towards economic growth and job creation by companies in a country. This makes the use of expansionary monetary policies frequent in situations of economic crisis or recession. Through various stimuli, on the one hand, it is about stimulating the production of goods and services and, therefore, the level of income of its citizens. On the other hand, it is about influencing the markets so that banks grant greater credit to families and businesses.