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3 years ago

What is Gnp gap? in economics

Business

1 answer:

cricket20 [7]3 years ago

5 0

Answer:

Gross National Product (GNP) is the total value of all finished goods and services produced by a country's citizens in a given financial year, irrespective of their location.

<em>Hope that helps! :)</em>

Explanation:

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Offering customers different sized garbage bins for different disposal fees/prices, is one form of _______________ system.

Paul [167]

Answer: VARIABLE-RATE OR “PAY-AS-YOU-THROW”

Explanation:

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3 years ago

The data-mining technique that creates a report or visual representation is _____.

Helga [31]

Answer:

The data-mining technique that creates a report or visual representation is summarization.

Explanation:

The business world has changed drastically over the years in terms of marketing and service delivery because of growth in technology. The use of machines and internet has caused a greater need for access and analysis of information in such a way that can make a business thrive in the market. This means that most businesses have to look into better data-mining techniques that can assist them in the competitive business environment.

The different data mining techniques include; association-rule learning, classification, summarization and regression. They are explained further as follows:

1. Association-rule learning: this is a machine learning technique that discovers a relationship between large databases using the concept of strong rules.

2. Classification: this technique finds similarities in features of two or more data sets and groups them into the same category.

3. Regression: this is a predictive technique that is used to identify and analyse the likelihood of a specific variable.

4. Summarization: this technique takes the results from the data and puts it in a way that it is short and understandable by most people. It usually involves the use of tables and other data summarization software like Excel sheets to represent the data in a way that conclusions can easily be drawn. Data summarization is important especially in the digital world where large amounts of data are available for analysis and transfer. This technique helps in breaking down huge data into short comprehensible reports that can easily be used for quick decision making.

3 0

3 years ago

The Payback Period Rule states that a company will accept a project if: Multiple Choice The calculated payback is less than thre

LekaFEV [45]

Answer:

The calculated payback is less than a pre-specified number of years.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.

Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.

The Payback Period Rule states that a company will accept a project if the calculated payback is less than a pre-specified number of years.

Additionally, investors and project managers are advised to only invest in projects that are having a positive net present value that is greater than or equal to zero.

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3 years ago

Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4

CaHeK987 [17]

Answer:

a. Cost of Equity is 4.50%

b. Cost of Equity is 15.55%

Explanation:

The formula for price of a stock using the constant growth model of the DDM approach is,

P0 = D0 * (1+g) / r - g

Plugging in the available values,

62 = 0.3 * (1+0.04) / (r - 0.04)

62 * (r - 0.04) = 0.312

62r - 2.48 = 0.312

62r = 0.312 + 2.48

r = 2.792 / 62

r = 0.045 or 4.5%

SML (r) = rRF + β * (rM - rRF)

Plugging in the values,

r = 0.045 + 1.3 * ( 0.13 - 0.045)

r = 0.1555 or 15.55%

7 0

3 years ago

Hellman Industries is estimating the weighted average cost of capital of its new project. The company plan to finance this new p

beks73 [17]

Question Completion:

a. Find the Pretax cost of Debt, cost of preference, and ordinary shares.

b. Calculate Hellman Pre- tax and after Tax WACC.

Answer:

Hellman Industries

a) Pretax cost of debt = Yield on bonds = 8.3%

b) Cost of Common equity

= 11.77%

c) Cost of preferred stock

= 10.53%

d) Pre-tax WACC

= 10.3%

e) After-tax WACC

= 8.93%

Explanation:

a) Data and Calculations:

Weight of Common stock = 50%

Weight of Preferred stock = 10%

Weight of Debts (Bonds) = 40% (100% - 50% - 10%)

Market return on common stock = 11.4%

Risk-free return (treasury bills yield) = 4%

Beta = 1.05

Average yield to maturity of Hellman semiannual coupon bonds = 8.3%

Market price of Preferred stock = £76 per share

Par value of Preferred stock = £100

Dividend rate of Preferred stock = 8%

Dividend per share = £8 (£100 * 8%)

Cost of Preferred stock = £8/£76 * 100 = 10.53%

Marginal tax rate = 40%

a) Pretax cost of debt = Yield on bonds = 8.3%

After-tax cost of debt = 8.3% (1 - 0.4) = 4.98%

b) Cost of Common equity, Re = Risk Free Rate + Beta x (Market Return - Risk Free Rate) = 4% + 1.05 x (11.4% - 4%)

= 4% + 1.05 * 7.4%

= 4% + 7.77%

= 11.77%

c) Cost of preferred stock = Dividend per share/Price * 100

= $8/$76 * 100

= 10.53%

d) Pre-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 8.3%

= 5.885 + 1.053 + 3.32

= 10.258

= 10.3%

e) After-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 4.98%

= 5.885 + 1.053 + 1.992

= 8.93%

8 0

3 years ago

What is Gnp gap? in economics​

What is Gnp gap? in economics