Given:
Change in exports: 15 billion
MPC = 0.75
MPC = Change in Consumption / Change in Disposable income
MPS stands for Marginal Propensity to Consume while MPS stands for Marginal Propensity to Save.
MPC + MPS = 1
MPC = 1 - MPS
MPS = 1 - MPC
Spending Multiplier = 1/MPS
Since MPC = 0.75 then MPS = 0.25
Spending Multiplier = 1/0.25 = 4
Change in Export * Spending Multiplier
15 billion * 4 = 60 billion
The cumulative Korean spending will drop by 60 billion.
Answer:
$66.78
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Value of Share = Dividend / (Rate of return - Growth rate)
P0 = D0 ( 1 + g ) / ( r - g )
where
P0 = Value of stock at time 0 / today = ?
D0 = Dividend paid at time 0 / current = $3.15
g = growth rate = 6%
r = rate of return = 11%
Placing all these values in the formula
P0 = $3.15 ( 1 + 6% ) / ( 11% - 6% )
P0 = $3.339 / 5%
P0 = $66.78
Answer:
The correct answer is letter "D": decrease, exports decrease, and U.S. net exports are unchanged.
Explanation:
Imposing tariffs may have negative consequences for a country. Typically, this option is taken when the government tries to boost the purchase of domestic products but the countries imposed the quotas impose some other tariffs as well for retaliation. <em>Both exports and imports of those countries are likely to decrease</em> in that case since products become more expensive.
The net exports are calculated by subtracting the total of imports from the total of exports of a country. Under the scenario explained above, under a trade war, the <em>net exports will remain unchanged </em>since both imports and exports will decrease. For a change, only one of them must vary.
Answer:
the break even point in sales dollars is $223,667
Explanation:
The computation of the break even point in sales dollars is shown below:
= Fixed cost ÷ contribution margin ratio
= $80,520 ÷ ($138,960 ÷ $386,000)
= $80,520 ÷ 36%
= $223,667
Hence, the break even point in sales dollars is $223,667
Answer:
$3,210.94
Explanation:
The NOPAT of the Edwards electronics can be determined through the following mentioned method.
Sales: $11,250
Operating costs: ($5,500)
Depreciation: ($1,250)
Interest payment ($218.75)
($3,500*6.25%)
Profit before tax $4,281.25
Taxes(25%) ($1,070.31)
NOPAT $3,210.94
