Answer:B
Explanation:
This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.
Answer:
2 years
Explanation:
Payback period is the length of time it takes for the future cash flows to equal the initial investment.
$224,000 = $112,000 + $112,000
therefore,
It takes 2 years for the cashflows to equal initial investment
Answer:
1) $30
2) 2,014,000 shares
Explanation:
1). A 4 for 1 stock split means that for every one stock outstanding, there would be two stocks outstanding port the split. However, the value of the firm is not increased here. So, the value of firm won't change
Value of firm pre-split = Value of firm post-split
Therefore,
Number of shares pre-split * Share Price pre-split = Number of shares post-split * Share Price post-split
1 * $90 = 3 * Share price post-split
Solve for share price post slip:
Share price post-split = $90/3 = $30
2) Number of shares post stock dividend = Number of shares pre stock dividend * (1 + Dividend %)
Number of shares post stock dividend = 1,900,000 * (1 + 6%) = 2,014,000 shares
Answer:
the interest that need to pay each year is $275,000
Explanation:
The computation of the interest that have the company to pay every year is shown below;
= Principal × rate of interest × time period
= $5,000,000 × 5.5% × 5
= $1,375,000
Now for each year it is
= $1,375,000 ÷ 5 years
= $275,000
Hence, the interest that need to pay each year is $275,000