Answer:
$68.48
Explanation:
We have a stock that pays no dividends for 9years. Once the stock begins paying dividends, it will have a constant growth rate of dividends. We can use the constant growth model at that point. It is important to remember that general constant dividend growth formula is:Pt= [Dt× (1 + g)] / (R− g)This means that since we will use the dividend in Year 9, we will be finding the stock price in Year 10. The dividend growth model is similar to the PVA and the PV of a perpetuity: The equation gives you the PV one period before the first payment. So, the price of the stock in Year 10 will be:P9= D10/ (R− g) = $17 / (12.5/100 − 3.9/100) = $197.67
The price of the stock today is simply the PV of the stock price in the future. We simply discount the future stock price at the required return. The price of the stock today will be:P0= $197.67/ 1.125^9= $68.48
Answer:
A matter of timing
Explanation:
The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the evaluation and adjustment lags is called <u>a matter of timing.</u> The reason being that it can be difficult to time fiscal policy to shift the AD curve at the right moments.
Answer:
A) EOQ = 208.56 units
B) Average inventory = 104.28 units
C) Optimum number of order = 28.76 times
Explanation:
Economic order quantity is the order quantity that minimizes the balance of ordering and carrying cost.
Economic order quantity = √2× 29× 6,000/8=208.56 units
Average inventory = Minimum stock level + Order quantity/2
minimum stock level is not given , hence
Average inventory = 208.56/2 = 104.28 units
Optimum number of order
Optimum number of order = Demand / order quantity
= 6000/208.56= 28.76 times.
EOQ = 208.56 units
B) Average inventory = 104.28 units
C) Optimum number of order = 28.76 times
Answer:
A. money supply curve will shift right.
Explanation: when the supply of money is increase by the central bank,the money supply curve will shift right. Leading to a lower interest rate,but,the money supply curve shifts left, when the supply of money falls,which leads to higher interest rate.
