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user100 [1]
3 years ago
12

assume that autonomous consumption is $1610 billion and disposable income is $11,200 billion. Using the consumption function, ca

lculate consumption expenditure
Business
1 answer:
Viefleur [7K]3 years ago
6 0

Answer:  $9,226

Explanation;

The consumption function is;

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

Marginal Propensity to Consume;

=Increase in consumption expenditure/  Increase in Disposable income

= 680/1,000

= 0.68

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

= 1,610 + ( 0.68 * 11,200)

= $9,226

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a share of stock is now selling for $90. it will pay a dividend of $10 per share at the end of the year. its beta is 1.0. what m
Tom [10]

Investors anticipate that the stock will trade at $96.21 at the end of the year.

In line with CAPM

Required rate of Return (Ke) = Rm - (E(Rm) - Rf) * Beta

Rf = the risk-free rate.

E(Rm) stands for the expected rate of return on a market portfolio.

Ke = 4% + 1 * (18% - 4%) follows.

= 4% + 14% = 18%

now utilizing Gordon Growth Model

The stock's price is D1/ (Ke- g)

where D1 is the dividend for the next year.

g = Rate of Growth

90 = 10 / (18% - g)

g = 18% - 10/90 = 18% - 11.11% = 6.89%

Price anticipated at the year-end = D2 (Ke- g)

D2 = D1 * (1 + g) = 10 * (1 + 6.89%) = $10.689

Expected Price at the end of the year is equal to 10.689/ (18% - 6.89%), or 10.689/11.11%, or $96.21.

Investors anticipate that the stock will trade at $96.21 at the end of the year.

what is a market portfolio?

The term "market portfolio" refers to a portfolio that includes the weighted total of each item traded on the market, with the required supposition being that these assets are endlessly divisible.

learn more about it market portfolio-brainly.com/question/28005592

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8 0
1 year ago
Universal finance has segmented its customer base into two categories: high wealth and retirement. high wealth accounts should b
kap26 [50]

In the scenario in which the segmentation of the customer base is in two categories: high wealth and retirement. A system administrator can make the differentiation high wealth accounts to be visible to high wealth sales team members and retirement accounts should be visible to all sales user, by setting the organization-wide default sharing to private and create a sharing rule to share Retirement accounts with all Sales users.

7 0
2 years ago
The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account fo
Taya2010 [7]

Answer:

a) Assets increase by 35,000 (account receivable )

   Equity increase by 35,000 (sales revenue)

b) no effect

c) Assets increase by 20,000 (equipment)

Liabilities increase by 20,000 (note payable)

d) Assets decrease by 3500 (cash)

   Equity decrease by 3500 (utilities expense)

Explanation:

Accounting Equation:

Assets = Liaiblities + Equity

Assets: things and right owned by the company and able to generate cash in the future

Liabilities: obligation to do or pay assumed by the company

Equity: contribution from owners and earnings/losses

a) Provide services to customers on account for $35,000.

As the company has the right to claim the invoince aginst his customers and is also earning a profit from this sale

b) Receive cash of $27,000 from customers in (a) above.

we are "trading" one assets (account receivable) for another (cash) As the amount collected decerase the amount owed by the customer the effect of income from cash and decrease in amount to collect balance.

c) Purchase bike equipment by signing a note with the bank for $20,000.

the new equipment is an asset, it wil lgenerate earnings in the future. While the promissory note is an obligation thus, liability.

d) Pay utilities of $3,500 for the current mont.

the utulities paid will not generate incoem in the future are cost incurred thus, expenses which decreases the earnings of the business.

6 0
3 years ago
The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investme
Nimfa-mama [501]

Answer:

consumption, investment, government purchases, and net exports.

Explanation:

The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being.

Basically, the four major expenditure categories of GDP are consumption, investment, government purchases, and net exports.

4 0
2 years ago
Jason is an author who works for a variety of publishing companies. One of them recently informed him that they will no longer b
IrinaVladis [17]

Answer:

Problem focused

Explanation:

A stressor is factor the causes strain or tension for the individual that is experiencing it.

There are different strategies that is used to solve stressful situations: avoidance, emotion-focused, problem-focused, withdrawal.

The problem focused strategy involves efforts aimed at removing or reducing the cause of a stressor.

In the given scenario Jason has financial hardship that results from less need from his services.

He focused on the solving the cause of the problem by contacting the other publishers and accepting additional projects to compensate for the lost income.

4 0
3 years ago
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