Answer:
B
Explanation: because none of the others make sense
The following are topics in macroeconomics:
- The optimal interest rate for the Federal Reserve to target
- The effect of a large government's budget deficit on the economy's price level
The following are topics in microeconomics:
How a quota on textile imports affects the textile industry
<h3>What is microeconomics and macroeconomics?
</h3>
Microeconomics studies individuals and business decisions, while macroeconomics studies the government decisions and its impact on the economy.
Macroeconomics is a top-down approach while microeconomics is a bottom-up approach to analysing the economy.
To learn more about macroeconomics, please check: brainly.com/question/13244131
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Answer:
If for some reason Costco was to suffer from a lawsuit then it would have no choice but to cut the pay rates of their employees. Also, if there was a depression in the economic that caused a dramatic decrease in the stores profit.
Answer:
He will have to come up with a bigger down payment.
His monthly payments will be higher.
Good luck:)
Answer:
e) $37.05
Explanation:
Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.
So we discount the year 3 dividend using the dividend growth model formula
P = D (1+g)/r-g
r- rate of return, g = growth rate
Present value of the future dividends:
PV of Year 1 = 1.55(1.015)m × 1.12^(-1)
= 1.4047
PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)
= 1.27
PV of Year 3 (this will be done in two steps)
Step 1; PV (in yr 2) of year 3 dividend
= (1.55)(1.015)^2×(1.08)/(0.12-0.08)
=43.114
Step 2 : PV (in yr 2) of year 3 dividend
=43.114 × (1.12^(-2))
= 34.37
Best estimate of stock = 1.40 + 1.27 +34.37
= $37.05
Note
To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0
