Answer:
B
Explanation:
The cyclically adjusted budget balance is what the budget balance of an economy would be if the GDP was at its potential. It is also known as the known as the full employment budget balance
Answer:
The correct answer to the following question is A holder in due course.
Explanation:
A holder in due course is said to be a legal term , which describes about the person who has in good faith obtained a negotiable instrument and he or she has exchanged something valuable for that instrument, but the person is unaware of the fact that there might be some defect in the instrument like in title of person who is negotiating that contract.
Solution :
Given :
a). Value of stock earned per share = $5
Percentage of dividends distributed = 16%
Growth of dividend annually = 4%
Calculating the value of the common stock :
= 16% of $5
= 0.16 x 5
= 0.8
k = 0.09
g = 0.04
Therefore, the stock's value is give by,
=$16.64
b). Therefore, the value of the common stock when the growth rate increases is,
= 0.8+20% of 0.8
= 0.96
k = 0.09
g = 0.04
Value of stock
=$19.96
Answer:
According to the information in the text, the US GDP would be $500, because GDP only accounts for all the goods and services produced within the country, or under the income approach, for all the forms of income (rent, dividends, wages) earned by nationals or foreigners in domestic soil.
In this case, the Mexican citizen working in the US and earning $500 adds the same amount to US GDP of that year regardless of his nationality.
