Answer: A. and increases in government expenditures shift aggregate demand right.
Explanation: Government expenditures or spending affect the aggregate demand, because it is one of the component of aggregate demand. If there is an increase in government spending the aggregate demand will shift to the right.
When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.
Tom is a First line manager. First line managers are
managers who are supervising the people who are in the manufacturing field,
example of first line managers are foreman and shift heads. Their role is
directly coordinate to the workers by assigning tasks, checking the quality of employees’
works, and giving heads up information to executive managers of the success and
problems that arise in the company.
All of the following qualitative considerations may impact upon capital investment analysis except manufacturing sunk cost
.
Option c
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Explanation:
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In a manufacturing setup or any business environment Capital investment plays a major role. To do the long term investment and to assess the profitability the company will do a budgeting procedure is called the capital investment analysis.
The assessment of fixed assets like equipment, machines of a manufacturing sector is done by the capital investment analysis. From the above the manufacturing sunk cost is not considered for the analysis because it the money which has spent already that cannot be recovered.
Because the government is out of money so they decide to take it from others
Answer:
Di = dividend in year i
D0 = D1 = D2 = 0
D3 = 2
D4 = D3 * (1+24%) = 2.48
D5 = D4 * (1+24%) = 3.0752
D6 = D5 * (1+7%) = 3.290464
require return r = 14%
g = 7% in the long run
So stock price in year 5 = D6/(r-g) = 3.290464/(14%-7%) = 47.0066
Current price = Present value of dividends and stock
= D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 + D4/(1+r)^4 + D5/(1+r)^5 + Price in year 5/(1+r)^5
= 0 + 0 + 2/(1+14%)^3 + 2.48/(1+14%)^4 + 3.0752/(1+14%)^5 + 47.0066/(1+14%)^5
= 28.829219
= 28.83 (rounded to 2 decimals)
Explanation:
