Answer:
Option (c) is correct.
Explanation:
Multiplier effect = 1 ÷ (1 - marginal propensity to consume)
= 1 ÷ (1 - 0.75)
= 4
Net exports = Exports - Imports
= 0.5 - 0.7
= (-0.2)
Impact on the equilibrium income = Net exports × Multiplier effect
= (-0.2) × 4
= (-0.8),
so, the equilibrium income will fall by $0.8 trillion.
Answer:
Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.
The formula for DDM is
Value = D*(1+G)/R-G
D= 1.32
G= 9.5%
R=13%
1.32*(1+0.095)/(0.13-0.095)= 41.29
The fair present value of the company based on the dividend discount model is $41.29.
Explanation:
Answer:
Manufacturers produce or make products. They typically sell them to wholesalers or distributors that have expertise in getting products to retailers. Retailers then hold inventory and market the goods to consumers that purchase them for personal or family consumption.
Answer:
C. $(44 comma 000)
Explanation:
The computation of cash flow from investing activity is shown below:
Purchase of equipment for cash ($63,000)
Sale of equipment ($19,000)
Net cash flow from investing activity = - $63,000 + $19,000 = - $44,000
In this activity, the purchase of fixed assets should be negative as it is an outflow of cash whereas the sale of fixed assets should be positive as it is an inflow of cash.
