Answer:
Normative
Positive
Normative
Positive
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the statement , In some circumstances, if taxes are lowered,
government revenues actually increase, can be tested and it has it basis in economic theory
Normative economics is based value judgements, opinions and perspectives. For example, the statement - taxes are too high - is based on opinion. To some it is too high while to others it would be too low
Answer:
$54.44
Explanation:
This is the stock of the company that is expected to have multiple growth stages.
In the first phase, company is expted to grow 30% per year, so dividend paid from Year 1 to Year 3 are D_1 = 1.0 x (1 + 30%); D_2 = 1.0 x (1 + 30%)^2 and D_3 = 1.0 x (1 + 30%)^3 respectively.
Dividend in Year 4 is D_4 = D_3 x (1 + 18%).
Dividend in Year 5 is D_5 = D_4 x (1 + 8%).
Terminal value in at Year 4 is T_4 = D_5/(Discount rate - Long-tern growth)
Value of this stock is discounted relevant cashflow from Year 1 to Year 4 (include terminal value).
Putting all the number together, we have intrinsic value of the stock = $54.44
Transfer payments are payments that the government makes to a household even if the government did not receive a good or service from the household. Transfer payment examples are services like disability, social security, financial aid and other subsidies. Those on social security and benefits like this are not expected to give something to the government to earn these in their current state. Think of a transfer payment as a "gift" and do not need anything in return for use.
<span>The answer is net present
value. It is the difference between the present value of cash inflows and the
present value of cash outflows. NPV is used in capital budgeting to examine
the effectiveness of a projected investment or
project. A net present value that is positive stipulates that the
projected earnings produced
by a project or investment surpasses the anticipated costs. In general, an
investment with a positive NPV will be a profitable one and the one with a
negative NPV will result in a net loss. </span>