Answer:
Explanation:
The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.
The multiplier effect refers to the increase in final income arising from any new injections.
Calculating the Multiplier Effect for a simple economy
k = 1/MPS
A = 1/0.1 =10
B= 1/.5=2
Answer:
The correct answer is option d. to increase the shares outstanding.
Explanation:
A company can repurchase its previously purchased stocks to resell to the employees, for bonuses to employees and to even support the market price of the stock.
But the company certainly will not repurchase its previously purchased stocks to increase the shares outstanding.
I hope the answer is helpful.
Thanks for asking.
Answer:
The expected annual return of Portfolio is 12.00%
Explanation:
The portfolio return is calculated by multiplying the individual security return with weight of individual security in the portfolio. We have three securities R, J and K with expected return on 12%, 18% and 8% with weight of 50%, 20% and 30%. Through multiplying them we get individual return of security that is 6%, 3.6% and 2.4%. The weighted average portfolio return is 12%
Answer:
b-The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium.
Explanation:
Beta reflects the risk associated, as the beta is low, the expected risk is also low, accordingly return expected is also keeping all things constant.
When Beta is less than 1 it means the returns will be lower than market, accordingly for Stock A the return will increase but slower than the market risk.
Whereas, the Beta is more than 1 of Stock B and accordingly the risk is more but return will grow even faster as the risk volatility is high than the market risk.
Answer:5 ways
1 by making long trips less expensive
2 by making long trips in less time
3 by opening up new trade markets
4 by increasing hiring opportunities
5 by increasing travel options
Explanation:
