Answer:
Option (a) is correct.
Explanation:
Given that,
Dividend pay in year 7, D7 = $2 per share
Growth rate of dividend, g = 2.2 percent per year
Required return, ke = 16 percent
Present value of the future dividend at year 6:
= D7 ÷ (ke - g)
= $2 ÷ (0.16 - 0.022)
= $14.49
Therefore, the present value of dividend now is as follows;
= Present value of the future dividend at year 6 × (1 + ke)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Answer:
a. Consumption will increase as goods and services are now cheaper for people to buy.
b. Investment increases as people will have more money to invest due to having spent less on consumption.
c. Net exports increases as exports become cheaper due to lower prices in the country. More people outside will therefore demand exports leading to them increasing more than imports.
d. Money Demand - B. There is a movement along the Money Demand curve to the Left
As price has decreased, the amount of money needed to buy goods will decrease which would lead to less demand for money. Money demand curve will show this as a movement to the left of the Money demand curve.
e. The interest rate will decrease because there will be more money to invest as explained above. With more money to invest, loanable funds will b in high supply thereby dropping interest rates.
f. Aggregate expenditure shifts right to show that expenditure has increased from people buying cheaper goods.
g. Aggregate demand - B. AD shifts to the Right.
More people will demand goods and services because they are cheaper.
The company national and the company branstons I dont like them
Answer:
A) increases its connectivity with people and organizations in other parts of the world.
Explanation:
Globalization is a common word now, and it takes place when a company starts to economically interact with other companies, employees or clients in other countries around the world. Globalization can take place when a company outsources manufacturing to another country, or when it outsources services to people from other countries, or when the company starts to sell its products or services to customers around the world.
Globalization breaks down communication barriers and increase connectivity within firms and individuals in different countries.
