Answer:
Option A.
Explanation:
Given information:
GDP = $11 trillion
Consumption = $7 trillion
Taxes = $2.5 trillion
Surplus = $1 trillion
The formula for private saving is
The formula for national saving is
The private saving and national saving are $1.5 trillion and $2.5 trillion, respectively.
Therefore, the correct option is A.
Answer:
First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.
D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %
Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607
Growth Rate post Year 5 = 4.08 %
D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459
Required Return = 13.6 %
Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98
Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34
Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %
Total Required Return = 14. 6 %
Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %
After a 12-week program of intense classroom and physical training (hands on), it will follow along with a 21-day Boot camp.
Hope this helped!
Answer:
operating cash flow 207,300
Explanation:
We will solve using indirect method:
from the net income we adjust for the change in the working capital:
net income 217,100
<u>change in working capital:</u>
decrease in account payable (6,200)
Because the account payable decrease more cahs was used to pay up the bill
increase in inventory (3,600)
As inventory increase, more cash was used to purchase inventory
operating cash flow 207,300
The purchase value could help us to get the amount of cash paid to suppliers, but we cannot figure out the sales collected or any other payment. We canot use direct method
