Answer:
$55.134
Explanation:
Given
dividend paid on its stock = $8.25
Duration is next 13 years
P0 = dividend on its stock × (PVIFA of return on this stock,years)
Remember PVIF = (1 - (1 + r)^-n)/r
Where PVIFA = present value interest factor of annuity
r = interest rate per period
n = number of periods
Therefore
P0 = $8.25 × (PVIFA11.2%,13)
P0 = $55.134
Answer: There will be a surplus at the increased price.
Explanation: Acc. to the law of demand as the price of a good rises the quantity demanded for the good will fall. This is represented by a movement up along the demand curve.
Acc. to the law of supply as price of a good rises the sellers will supply more units of the good. This is represented by a movement up along the supply curve.
At the increased price, there will be a surplus in the market given by Q's - Q'd.
Eventually, the surplus will lead to a fall in the price of pants till demand for the good is equal to its supply.
Answer:
Cash flow year 0 (110,000)
or in other way to express it: a cashoutflow for $110,000
Explanation:
Initial net cahs outflow
this will be the acquisition of the machine cost plus the increase in the working capital for the company
machine cost: all cost necessary for acquire the machien and get it operational
supplier list price 85,000
installation cost <u> 15,000</u>
total cost 100,000
Increase in Working Capital Cost 10,000
As these are cost they are negative so we have a cashouflow
Total cashflow (110,000)
Answer:
C. projected increasing health care costs for the aging population.
Explanation:
If the debt to GDP ration increases, it means that the country will owe more money compared to capacity of creating wealth. A common problem for several developed countries is that the proportion or retired people has increased compared to the total active labor force. This means that the number of people working or searching of jobs relative to the number of retired people has decreased. Even though retired people tend to have more accumulated wealth, their living expenses are also much higher. What makes this situation a problem is that retired people only have passive income, they do not have earned income. And generally speaking, passive income grows at a much lower rate that earned income.
This is why many developed countries started to implement immigration policies focusing on highly trained and educated applicants that can replace their native workforce.
