10. none of the above.
explanation: all of the reason are applicable for determining the homeowners insurance premium.
11. Whole life insurance
Explanation: whole life insurance, has steady, more expensive premiums than term insurance since it lasts a lifetime and includes fixed death benefits and guaranteed cash value accumulation.
Answer:
This is a recessionary gap of $60 billion.
Simple multiplier = 1/ (1-.75) = 1/.25 = 4
The government would then have to increase its spending on goods and merchandise by total gap divided my simple multiplier.
$60 billion/ 4 = $15 billionTransfer multiplier - Each dollar of a Transfer payment will increase real GDP by Transfer Payment Multiplier
= MPC / (1-MPC) = 0.75 / (1-0.75) = 0.75/0.25 = $3
The government must increase spending on transfer payments by total gap divided by transfer payment multiplier = $60 billion / $3 = $20 billion
Answer:
(a) $4.08
(b) $51.03
Explanation:
Constant growth rate for earnings:
= (EPS for any year ÷ EPS for the previous year) - 1
= (8.40 ÷ 8.00) - 1
= 0.05
= 5%
(a) EPS for 2016 = EPS for 2015 × (1 + 5%)
= 9.72 × 1.05
= $10.21
Dividend for 2016 = 40% × EPS for 2016
= 40% × 10.206
= $4.08
(b) Stock Price at the beginning of 2016:
= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)
= 4.0824 ÷ (0.13 - 0.05)
= $51.03
Answer:
increase in real wages, hiring less workers
Explanation:
In the case when the nominal wages are remain same but at the same time the level of the price should changed so if there is an decrease in the level of the price so that means there is an increased in the real wages as it is an inverse relationship between the real wages and the price level due to this the firm could hired less workers as the wages are increased
