Your answer should be 40 million dollars
Answer:
The correct option is A,government spending and taxes that automatically increase or decrease along with the business cycle.
Explanation:
From a U.S perspective, automatic stabilizers are measures built into the country budgets that adjust the taxes to government's coffers and government expenditure when the economy goes into recess.
These measures are not usually approved by the Congress.
If one takes a careful look at the question, one would notice that the question talks about fiscal policy measures, which are government spending and taxes,invariably, option B is wrong because money supply belongs to monetary policy.
Option C is also wrong because taxes is not the only fiscal policy available.
Option D is wrong budget is a fiscal policy tool not a measure.
Yes its against the law and can make your clients upset witch you.
And a government created monopoly would be the banks bailouts
Answer:
The fair price of stock today is $48.425 and that is the most one should be willing to pay today.
Explanation:
The company's dividend will grow at a constant rate of 4.3% which means that the constant growth model of Dividend Discount Model will be used to calculate the price of a stock today.
The formula for Constant growth model is,
P0 = D0 (1 + g) / r - g
Where,
- D0 is dividend today
- r is the required rate of return
- g is the growth rate in dividend
P0 = 1.95 * (1+0.043) / 0.085 - 0.043
P0 = $48.425
