Answer:
Flow chart or a flow model. I don't remember which it was
Answer:
Price of share= $112.496
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 16.0% as follows
Year Present Value
1 2.95× 1.28× 1.16^(-1)= 3.178
2 2.95× 1.28^2 × 1.16^(-2)= 3.591
3 2.95× 1.28^3 × 1.16^(-3)= 3.963
Year 4 and beyond
Present Value in year 3 =(2.95× 1.28^3× 1.064)/(0.28-0.064)= 68.568
Present value in year 0 = 68.56813227
× 1.16^(-3)= 43.92
Price of share =3.1788 + 3.591 + 3.963 +43.928
= 112.496
Price of share= $112.496
Answer:
Explanation:
a) A production function has constant return to scale if the inputs and the outputs change by the same factor.
Multiplying K and L by a constant C
Since Y = F(CK, CL) = CF(K,L), the production function have constant returns to scale
b) Per-worker production function, y = f(k)
c) % Capital depreciation per year, Δ = 0.2
Country A saves 10%, S = 0.1
The steady state level of income per worker and consumption per worker
Country B saves 30%, S = 0.2
The steady state level of income per worker and consumption per worker
Answer:
The tariff raises the domestic price of the imported product, and domestic producers of the product raise their price when the domestic price of imports increases.