Answer:
The number of new shares = 6
Explanation:
Dividend is the proportion of profit paid by a company to its shareholder as a form of return on their investment. Another form of return on share investment is the capital gain; which is the difference between the selling price of a share now and its cost when it was purchased.
<em>For Jodi, we need to first calculate the amount of dividends earned on the total shares she owns. And then divide the result by the current purchase price of a share to arrive at the number of shares she can buy more.</em> This is done as follows:
Total dividends = 112× 0.80 = $89.6
Current price of a share = $16.20
THe number of shares that can be purchased= 89.6/16.20=5.5
The number of new shares = 6
Answer:
See below.
Explanation:
For a, first we calculate the credit multiplier of the economy,
Credit multiplier = 1 / reserve ratio
Credit multiplier = 1 / 0.25 = 4
This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.
For b, we again start by calculating the credit multiplier.
Credit multiplier = 1/0.10 = 10
Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.
The Fed thus increases the money supply by 150/10 = $15 billion.
This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.
Hope that helps.
Answer:
$290,000
Explanation:
We start with the cost of building a replica of the house:
building a new house: $350,000
plus highest and best use $25,000
minus perceived value loss ($20,000)
minus physical deterioration ($50,000)
<u>minus building obsolescence ($15,000) </u>
appraised value $290,000
