When you receive your monthly credit card statement, the balance refers to the
2 answers:
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The cost of equity from retained earnings based on the DCF approach=9.44%
Explanation:
- The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
- For D1 = $0.67
- For P0 = $27.50
- For g = 7.00%
- Therefore, rs =
+ g
- The answer is =9.44%
Answer:
A supply shock is an unpredictable incident that changes the supply of a product or a service, subsequent in an unexpected modification in its value. Supply shocks can be undesirable (decreased supply) or optimistic (increased supply)
(a) The two types of shock which are:
- Primarily the growth in oil values is a negative supply shock causing from a decline in supply of oil
- The reduction in oil charges is a Positive supply shock causing from a growth in supply of oil.
(b) If the charges of oil increases as in case (i) that will push companies’ prices and thus decrease SRAS. The new equilibrium will be established at a inferior level of output and higher charge level. This is reflected in the diagram attached.
In the case (ii), the opposed of this will occur. The SRAS will rise shifting the SRAS rightward and carry about a new equilibrium at upper level of output and lesser prices.
