Answer:
Character.
Explanation:
Credible character is used for someone who is trustworthy, kind and believable, it has to be backed by evidence or experience. It carry the power to influence belief or thought. Crediblity of a character may slip if it is not maintained forever. As crediblity is earned through consistent honesty, selflessness,virtue and good behavior.
There are several dimensions of crediblity that affect audience toward speaker:
- Competence
- Extraversion.
- Composure.
- Character.
- Sociability.
Answer:
The reutrn on equity should be of 9.53%
Explanation:
We can solve the return on equity by considering the gordon model of dividend growth:
current dividends 2 dollars
next year dividends: current x (1 + g) = 2 x (1 + 0.06) = 2.12
Ke = 0.09533 = 9.53%
Answer:
C) a reduction in the saving rate will have an ambiguous effect on (C/N)*
Explanation:
The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.
Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.
But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.
Answer:
a. The company must have had net income equal to zero in 2009.
Explanation:
If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that the company must have had net income equal to zero in 2009.
Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.
However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.
In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009
