Potential GDP = $20
Real GDP =$19.2
so an output gap is measured relative to potential output and it is calculated according to the formula [( X - Y ) Ă· Y] Ă—100. In this case, the output gap is [($10 billion - $8 billion) Ă· $8 billion] Ă—100 = 25%.
Answer:
A) Adaptability
Explanation:
The company could not adapt to the current trends in the market. organizational adaptability is concerned with how firms could quickly adjust their business processes to changes that enhances their growth and make give them the ability to compete with rivals.
Many advantages are embedded in adjusting to the trend in the market, one of which is:
1. They value their employees
2. They have a well defined goals
3. They become more creative
<span>Acquisition or Procurement is the means on how equipment is bought for businesses and the military. However for peoples own personal use, shopping is the more common everyday word.</span>
Answer:
A. Stockholders equity at the end is $493,000.
B. Closing total assets is $865,000.
C. Closing liability is $410,000.
Explanation:
A. Closing total assets:
= Opening assets + increase in assets
= $845,000 + $177,000
= $1,022,000
Closing liability:
= Opening liability - Decrease in liability
= $600,000 - $71,000
= $529,000
Closing equity:
= Closing assets - Closing liability
= $1,022,000 - $529,000
= $493,000
B. Opening equity:
= Opening assets - Opening liability
= $845,000 - $600,000
= $245,000
Closing assets:
= Opening assets + increase in liability - Decrease in equity
= $845,000 + $92,000 - $72,000
= $865,000
C. Closing liability:
= Opening liability - decrease in assets - increase in equity
= $600,000 - $90,000 - $100,000
= $410,000
Answer:
The answer is below
Explanation:
a) The dividend growth rate is given as D2/D1 - 1
Year Dividend Growth rate
1 $1.25
2 $1.33 ($1.33/ $1.25 - 1) 6.4%
3 $1.4 ($1.4/$1.33 - 1) 5.26%
4 $1.51 ($1.51/$1.4 -1) 7.86%
The arithmetic average growth rate is the average of all the growth rates.
Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%
The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate
The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%
b) The geometric growth rate is given as:
geometric average growth rate =
The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%
