<span>Net domestic product (NDP) equals the output of the economy (GDP) minus the depreciation of the nation's capital goods. This is an indicator of how much a nation must "invest" to continue that current GDP.
To solve for the NDP your equation would be:
NDP = GDP - depreciation
When you are finding the NDP of something, you are commonly referring to a house, vehicle or the life span of a machine. </span>
Answer:
P3 = $96.9425 rounded off to $96.94
Explanation:
To calculate the market price of the stock three years from today (P3), we will use the constant growth model of DDM. The constant growth model calculates the values of the stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1) / (r - g)
Where,
- D1 is the dividend expected for the next period
- g is the constant growth rate
- r is the required rate of return on the stock
To calculate the price of the stock today (P0), we use the dividend expected for the next period (D1). So, to calculate the price at the end of 3 years (P3) we will use D4.
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
r = 0.058 + 0.6 * 0.05
r = 0.088 or 8.8%
Using the price formula for DDM above and the values for P0, D1 and r, we can calculate the g to be,
80 = 1.75 / (0.088 - g)
80 * (0.088 - g) = 1.75
7.04 - 80g = 1.75
7.04 - 1.75 = 80g
5.29/80 = g
g = 0.066125 or 6.6125%
We first need to calculate D4.
D4 = D1 * (1+g)^3
D4 = 1.75 * (1+0.066125)^3
D4 = 2.12061793907
Using the formula from DDM for P3, we can calculate P3 to be,
P3 = 2.12061793907 / (0.088 - 0.066125)
P3 = $96.9425 rounded off to $96.94
Answer:
a short-run decision because the number of aircraft is held constant while the labor input is changed.
Explanation:
In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.
In this case, the number of aircraft is the fixed factor of production (capital) while labor is variable because more pilots can be hired. Regulation state that pilots must rest a certain amount of time in between flights, so if you want to increase the amount of flights you need to hire more pilots and cabin crews since regulations do not require planes to rest.
Answer: The theoretical characteristics of firms in different industries
Explanation:
A market is a medium whereby buyers and sellers of goods and services meet to transact business. While a market structure is a way and manner in which the different parts of the market are closely linked together. Market structure is divided into two which are
Perfect market : A perfect market is one in which the producers cannot influence the prices of their products, either by reducing or increasing the quantity produced. The producer only produces a fractional part of the total produc. Therefore, the producer cannot influence the price .if a producer charges high prices ,the producer will lose his customers.
Imperfect market : An imperfect market is one in which the producers can influence the price of their commodities. Since, the producer is the only one producing the commodities, the producer can influence the price by reducing the supply .This will then force the price to rise.Therefore,a producer in an imperfect market can control both the price and supply.
