Answer:
the required rate of return i r=0.13%
Explanation:
In order to calculate the required rate of interest in the case of a perpetual preferred stock we will use the following formula:
P(p) = D(p) / r
where P(p) is the preferred price of the stock, D(p) is the preferred dividend price and r is the required rate of interest.
This gives us the following values:
30 = 4 / r
r = 4 / 30
r = 0.13%
The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.
Answer : Minimum Wage
Explanation: From the scenario analysis the minimum wage should be reduced since its increasing the unemployment rate so that lesser wages would make the youth to work more for their salary.
If the government has a budget deficit, crowding out might
occur. Crowding out leads to all of the following; a higher real interest rate,
a smaller capital stock in the future and a decreased quantity of investment. Borrowing from the rest of the world Government budget surpluses, private saving.
