Answer:
833.33
Explanation:
The fixed annual dividend is $100
The required rate of return on this investment is 12%
Therefore the value for each share can be calculated as follows
= 100/(12/100)
= 100/0.12
= 833.33
Hence the value for each share is 833.33
Answer:
If MPC is 0.8, Change in GDP = $500 million
If MPC is 0.95, Change in GDP = $2,000 million
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be
Change in GDP = change in autonomous expenditure × Multiplier
= 100 × 5 = $500 million
<em>Scenario 2, MPC of 0.95</em>
Expenditure Multiplier = 1/(1-0.95) = 20
Change in GDP= 100 × 20 = $2000 million
<u>Answer:</u> Frequency
<u>Explanation:</u>
Frequency is the number of times the audience sees or hears the advertisement. It is significant to measure the frequency of the advertisement such as TV media, posters, hoardings, radio, social media etc. to know the effectiveness of the advertisement.
When the advertisement is effective then the sales for the product or service advertised increases. Advertisement also increases the consumer awareness about the product. Increased frequency can be very efficient as it creates a memory in the minds of the consumers.
When you pay off an installment loan early you will save money on interest.
The bank charges an interest rate on money that they loan out. When you pay the loan early you do not have to pay the interest on the money for the amount of time left on the loan.
