Answer:
Increases
Explanation:
Generally, as the proportion of middle-income households in a country increases, the greater (an increase) nation's purchasing power.
Actually, the purchasing capability increases in proportion to an increase in the income of households.
Purchasing power is known as the currency value which is usually seen in the amount of goods or services that a unit of money can buy.
Answer:
The intrinsic value of the stock is 9.76
Explanation:
We have to use the dividend growth model
It is fundamental to understand that these values are in the future so we must take them to present value, using the required return of 14%
![\left[\begin{array}{ccc}-&DIVIDENDS&PRESENT VALUE\\1&0&0\\2&0&0\\3&0.75&0.506228637151512\\4&0.87&0.515109841312065\\5&1.0092&8.73578093453209\\Intrinsic&Value&9.75711941299567\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D-%26DIVIDENDS%26PRESENT%20VALUE%5C%5C1%260%260%5C%5C2%260%260%5C%5C3%260.75%260.506228637151512%5C%5C4%260.87%260.515109841312065%5C%5C5%261.0092%268.73578093453209%5C%5CIntrinsic%26Value%269.75711941299567%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We multiply year 3 by 1.16 to get year 4
Then we multiply year 4 by 1.16 to get year 5 dividends.
Then we use the dividend growth model to get the value ofthe future years
Again, this value is set 5 years into the future, so we have to calculate the present value
Same process is done for year 3 and 4
Then we add the three values to get the value of the stock today.
Answer:
Option A, 20% more, is the right answer.
Explanation:
Given the beta value of stock A = 1.2
The beta value of stock B = 1
The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A is large by 20% as compared to the beta of stock B.
It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B
= (1.2 – 1) / 1
= 0.2 or 20%
Therefore, the return will also be more than 20%.
Thus, option A. 20% more is correct.
The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.
The required details for Economic shocks in given paragraph
An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.
Economic shocks may be labeled with the aid of using the financial area that they originate from or with the aid of using whether or not they mainly affect both deliver or demand. Because markets are connected, the outcomes of shocks can pass via the financial system to many markets and feature a main macroeconomic effect, for higher or worse.
To know about Economic shocks click here
brainly.com/question/29704208
#SPJ4
Dollars - currency exchange market
Shares -stock markets
Wheat-commodity market
