Answer:
$41.912
Explanation:
Data provided in the question;
Annual dividend paid = $3.10
expected growth rate, g = 4% = 0.04
Number of shares planning to buy = 1,000
Market Rate of return = 12% = 0.12
Now,
the current price of the share =
or
the current price of the share =
or
the current price of the share = $40.3
Therefore,
Price per share next year = current price of the share × (1 + g)
= $40.3 × (1 + 0.04)
= $41.912
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If consumers and firms become less optimistic about the future economy then (C) unemployment will rise.
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What is unemployment?</h3>
- Unemployment is the state of being capable of working, actively seeking work, but unable to find any.
- It should be noted that in order to be considered unemployed, a person must be an active member of the labor force and actively seeking remunerative work.
- Unemployment reduces demand, consumption, and purchasing power, resulting in lower profits for businesses and budget cuts, and workforce reductions.
- It starts a vicious cycle that is difficult to break without outside intervention.
- Unemployment will rise if consumers and businesses become less optimistic about the future economy.
Therefore, if consumers and firms become less optimistic about the future economy then (C) unemployment will rise.
Know more about unemployment here:
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The complete question is shown below:
1. Consider an economy at full employment. If consumers and firms become less optimistic about the future economy then
a) price levels will rise.
b) output will rise.
c) unemployment will rise.
It is the Days sales outstanding ratio or the DSO ration. It can be computed to estimate the firms' average account receivable. It illustrates on how the firm's receivable will be managed. It is usually determine on an annual, monthly and quarterly basis.