If real GDP was 2630 and grew annually at 3%, The value of real GDP ten years later is going to be $67670
<h3>How to solve for real GDP </h3>
We have to start by starting the formula A = P(1+r)^n
We have P = principal = 2620
We have r as the rate of interest = 3% = 0.03
We have the number of years n = 110
We have to put these values in the formula we have
A= 2620(1+0.03)^110
= 67669.9
This is approximated to be
= 67670
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When a shortage exists in a competitive market, the price provides incentives for Buyers to decrease the quantity of a good or service purchased to the market.
More about shortage:
In terms of economics, a shortage occurs when there is a discrepancy between the amount supplied and the quantity sought at the going rate.
Three factors primarily contribute to shortages: rising demand, falling supply, and government action. The term "scarcity" ought not to be confused with "shortage" as it is used in economics.
Command economies experience higher shortages. Here, the government refuses to let the forces of supply and demand determine the price of a good or service on the open market.
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It all depends on the plan document. The plan document will state the waiting period, which can be a year, a vesting schedule, and your rights.
So more information is needed to answer your question. I can say with reasonable assurance you will be entitled to 100% of the money you put directly into the plan. The waiting period and vesting schedule will decide how much you are entitled to of the employers money.
Answer:
(A) $93.33 million
(B) $98.25 million
Explanation:
Milton expects a free cash flow of $14 million each year
The corporate tax rate is 21%
The unlevered cost of capital is 15%
Milton has an outstanding debt of $23.44 million.
(A) The value of Milton's industry without leverage can be calculated as follows
= Free cash flow/unlevered cost of capital
= $14 million/15%
= $14 million/0.15
= $93.33 million
(B) The value of Milton with leverage can be calculated as follows
= unlevered value + tax rate × debt
= $93.33 million + 21% × $23.44 million
= $93.33 million + 0.21 × $23.44 million
= $93.33 million + $4.922 million
= $98.25 million
