Answer:
1. $50 million
2. $50 million
3. In a closed economy, national savings equals investment
Explanation:
For a closed economy, the formula for calculating GDP = C + I + G
Where C - Consumption
I - investment
G - Government Spending
To find investment ,
750 = 300 + I + 400
I = $ 50 million
National savings = private saving + Government saving
Private saving = Y − T − C
750 - 300 - 250 = $200 million
Public savings = T - G
250 - 400 = $-150 million
National savings = $200 - $ 150 million = $ 50 million
Nb - All numerical values are in $ millions
Answer:
4%
Explanation:
The property tax rate required in the given question shall be determined through the following mentioned formula:
Property tax rate=[(Budget expenditure-Non property tax income)/Assessed value of the all properties-Total exemption)]
Based on the above formula:
Property tax rate=[($108 million- $50 million)/($2,000 million-$550 million)]
Property tax rate=$58 million/$1,450 million
Property tax rate=4%
Answer:
A. Quantitative perspective
Explanation:
Roger using the capital asset pricing model and other mathematical tools to track finances is focused on quantitative perspective.
He is relying more in the figures to assist his clients.
Quantitative methods are characterised by use of statistics, mathematics, analysis and formation of logical models. Decisions are made on the final result.
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
- D0 is the dividend today or most recently paid dividend
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 8%
- r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
