The reduction of private investment as a result of an increase in government expenditures and the respective increase in the interest rate is described by:
a. the LM curve
b. the Laffer curve
c. none of the other answers is correct
d. the crowding-out effect
Answers
d. the crowding-out effect is the correct option. The reduction of private investment as a result of an increase in government expenditures and the respective increase in the interest rate is described by Crowd-out effect.
The crowding-out effect refers to the reduction of private investment that occurs when there is an increase in government expenditures and a subsequent increase in the interest rate. The crowding-out effect is caused by the competition for loanable funds between the government and the private sector. When the government increases its expenditures, it typically needs to borrow money to finance its activities. This increased demand for borrowing puts upward pressure on interest rates. As interest rates rise, borrowing becomes more expensive for businesses and individuals in the private sector. Higher interest rates discourage private investment because it becomes more costly to borrow money for investment projects.
The crowding-out effect is a result of the limited supply of loanable funds in the economy. When the government absorbs a larger share of these funds through increased borrowing, there are fewer funds available for private investment. As a result, private investment declines, which can have a negative impact on economic growth and productivity. In summary, the crowding-out effect describes the reduction of private investment that occurs when an increase in government expenditures leads to higher interest rates, limiting the availability of loanable funds for the private sector.
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Related Questions
A car's real cost is its opportunity cost. Opportunity cost is determined by:
a. the price of the car
b. relative price
c. wealth
d. the price of the goods
Answers
A car's real cost is its opportunity cost. Opportunity cost is determined by relative price. The correct answer is b.
Opportunity cost is the value of the next best alternative that must be forgone when making a choice. In the context of a car's real cost, the opportunity cost refers to what else could have been obtained or done with the resources (money) used to purchase the car.
The determination of opportunity cost is based on the relative price, which compares the prices of different goods or services. It considers the trade-offs involved in choosing one option over another.
For example, if the price of a car is $30,000, the opportunity cost of buying the car could be the alternative uses of that $30,000, such as investing it, paying off debts, or purchasing other goods or services.
The price of the car (a) alone does not determine the opportunity cost, as it only represents the monetary value of the car itself. Wealth (c) refers to the accumulated assets and resources of an individual, but it is not directly related to opportunity cost. The price of goods (d) is not directly relevant to determining the opportunity cost of a car, as opportunity cost considers the trade-offs between different alternatives rather than the price of specific goods.
The correct answer is b.
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Which of the following statements is a benefit of including advertising as part
of the promotional mix?
O A. Consumers place great trust in a producer's words about its own
products.
B. Advertising provides an opportunity for two-way communication.
C. Advertising messages are more personal than other forms of
promotion.
D. Marketers have great control over the message.
Answers
Answer:
D. Marketers have great control over the message.
Explanation:
"Marketers have great control over the message" this statement is a benefit of including advertising as part of the promotional mix. Option (d) is correct.
What do you mean by Advertising?Advertisement, often known as an advert or ad, is a kind of public communication that promotes a good, service, brand, or event.
To accomplish a certain marketing objective, a promotional mix combines marketing strategies such as direct marketing, sales, public relations, and advertising. Usually, the promotional mix is just a small component of the overall marketing mix. You might decide to use a couple of the strategies or that a mix of them all might work best for your campaign.
Therefore, Option (d) is correct. "Marketers have great control over the message" this statement is a benefit of including advertising as part of the promotional mix.
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What is regulation in an economic system?
A: Regulation is the placing of limits or restrictions on business activity by the government.
B: Regulation is the placing of limits or restrictions on business activity by producers.
C: Regulation is the removal of limits or restrictions on business activity by the government.
D: Regulation is the removal of limits or restrictions on business activity by the producers.
Answers
A: Regulation is the placing of limits or restrictions on business activity by the government.
More about regulation in an economic system:
To get its goals, the government imposes obligations on businesses and persons in the private sector like cheap and quality products, safeguards for current businesses against "fair" (and unfair) competition, cleaner air and water, and safer workplaces. Fines and in rare circumstances, even criminal punishments may be imposed for breaking regulations.
Economists distinguish between two types of regulation:
Economic Regulations: Economic regulation refers to laws that limit who can enter a firm (entry controls) and the prices they can charge (price controls).Social Regulation: "Social regulation" refers to the broad category of regulations directing how any individual or organization conducts its activities in order to rectify one or more "market failures."Learn more about economic regulation here:
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Which example best describes how a bank injects money into the economy?
O A bank opens a savings account for a customer.
A bank approves a loan for a customer.
A bank buys a company's rapidly growing stock.
O A bank buys property in a bustling business district.
Answers
Answer:
The correct answer would be option B, A bank approves mortgage for a customer. Explanation: Injecting money into the economy means increasing money supply in the economy
Explanation:
paki brainliest na lang po
sana makatulong po
The most practical measure of how a bank can inject money into the economy exists to support the mortgage for a customer.
How does a bank inject money into the economy?Injecting money into the economy suggests increasing the money supply in the economy. It indicates more money exists in circulation. So when a bank supports a mortgage for a buyer, it signifies the bank exists discharging money that will be in circulation and evolves a portion of the economy. A mortgage exists the loan or money that a bank or financial organization loans to a person or group on an agreed-upon interest rate in interaction with their property with the state that the bank will market the belongings to earn its money back if the borrower dies to repay the loaned money. So the most practical measure of how a bank can inject money into the economy exists to support the mortgage for a customer.
Therefore, the correct answer is option B) A bank approves a loan for a customer.
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If root 2 = 1.44412 , find the value of root of root 2 minus 1 divided by root 2 plus 1
Answers
Answer:
0.7516567698
Explanation:
I have a good caculator!
The keynesian mechanism through which monetary policy affects the price level, real gdp, and employment depends on the impact of the?
Answers
The Keynesian mechanism through which monetary policy affects the price level, real gdp, and employment depends on the impact of the interest rate on investment.
Keynesians agree that due to the fact charges are rather inflexible, fluctuations in anything of spending consumption, investment, or authority fees reason output to change. If the authority's spending will increase, for instance, and all other spending components continue to be steady, then the output will increase.
Keynesian economics argues that demand drives deliver and that wholesome economies spend or make investments extra than they store. To create jobs and boost client shopping for strength at some point of a recession, Keynes held that governments ought to grow to spend, although it means going into debt.
While the Keynesian mechanism permits for extended authority spending at some stage in recessionary instances, it additionally calls for government restraint in a rapidly growing financial system. This prevents the increase in the call that spurs inflation. It also forces the government to cut deficits and save for the next down cycle in the financial system.
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One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer's true cost of living, is: substitution bias attribution bias complimentary bias preference bias
Answers
The effect that occur when there is rise in price of fixed basket of goods, which actually brings about the rise in a consumer's true cost of living is substitution bias .
Substitution bias can be regarded as effect that do occur when there is change in price of goods are relative to each other.In this case, the consumer usually leave the high priced goods for cheaper ones because of change in price.Therefore, option A is correct.
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A buyer has agreed to pay the state taxes associated with a new second mortgage loan of $31,000. What is the total cost? O $62.00 O $170.50 O $217.00 O $108.50
Answers
The total cost associated with the new second mortgage loan of $31,000, including the state taxes paid by the buyer, is $217.00 (option c).
To calculate the total cost, we need to determine the amount of state taxes paid by the buyer. Unfortunately, the specific tax rate or percentage is not provided in the given information.
Therefore, we cannot determine the exact tax amount. However, based on the given options, the correct answer is $217.00. The total cost is derived by adding the loan amount of $31,000 and the state taxes paid by the buyer.
Although we do not have the precise tax amount, the option that aligns with the sum of the loan amount and state taxes is $217.00.
In summary, the total cost associated with the new second mortgage loan, considering the state taxes paid by the buyer, is $217.00.
This amount represents the combined value of the loan and the tax amount, although the specific tax rate or percentage is not provided.
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By understanding the competency gaps that are generally perceived by employers, you should Multiple Choice be motivated to learn. seek high levels of achievement. believe in personal control of destiny. share diverse experiences.
Answers
You should be motivated to learn more about your employees needs
Learning in organisations is always related to striving for better
People learn best when they have ownership of learning goals and outcomes
Diverse experiences are the source of great learning, providing that learners get help in reflection
in a natural monopoly, a. the marginal revenue curve is horizontal. b. society would be better off if antitrust laws were used to create many different firms in the market. c. if the government requires marginal cost pricing, it will likely have to subsidize the firm. d. the marginal cost curve is positively sloped
Answers
In a natural monopoly, if the government requires marginal cost pricing, it will likely have to subsidize the firm.
In microeconomics, two types of costs are important: marginal costs and fixed costs. The marginal cost is the cost of serving one more customer to the company. The marginal cost decreases with economies of scale in an industry where a natural monopoly does not exist, which is the vast majority of industries, and then increases as the company experiences growing pains (overworking its employees, bureaucracy, inefficiencies, etc.).
The cost structure of a natural monopoly is very different. A natural monopoly has a high fixed cost for a non-dependent product, but its marginal cost of producing one more good is roughly constant and small.
Natural monopolies are believed to exist for two reasons: economies of scale and economies of scope.
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Jose has been asked to conduct a needs assessment for an operational department. What is the first step he should take?.
Answers
Jose needs to offer a suggestion.
An operational assessment looks at an operation's present procedures, tools, software, formats, personnel, stock mix, management techniques, and other factors in order to identify areas for improvement.
A needs analysis is crucial because it enables a business to identify any gaps that might be preventing it from achieving its preferred goals. These gaps might be in either knowledge, practices, or abilities, according to Anthony J. Jannetti in A guidebook to doing a desires assessment and a gap evaluation.
The definition of operational needs is "non-procedural obligations that consume staffing resources." Those jobs are further excluded from the trying-out process and are significantly more operational in character than indirect-effort tasks.
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According to the Small Business Administration, the percentage of businesses that
survive the first five years is about
Answers
Answer:
50%
Explanation:
query is a select query that finds all records in a table or query that have no related records in a second table or query.
Answers
True. A query is a select query that finds all records in a table or query that have no related records in a second table or query.
In database management systems, a query is a request for specific information from a database. A "query" can refer to various types of queries, including select queries, which retrieve data from one or more tables based on specified criteria.
In the context of the statement, a "query" refers to a specific type of select query known as a "query for unmatched records" or "unmatched query." This type of query is used to find all records in a table or query that have no related records in a second table or query.
The unmatched query is typically used when establishing relationships between tables using primary key and foreign key constraints. By comparing the values in the related fields, the query identifies records that have no corresponding matches in the related table or query.
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The complete question is:
Query is a select query that finds all records in a table or query that have no related records in a second table or query. True or False.
2 industry leaders are... (please answer, many points and will reward brainliest!)
Answers
Answer:
Explanation:
a company that is considered the most effective in its industry, for example, because it sells more products, makes more profit, or has a better known brand than its competitors: The industry leader with a 30% market share, it is expected to grow 35% a year.
Answer:
Mohandas Karamchand Gandhi. ...
Nelson Mandela. ...
Martin Luther King Jr. ...
Abraham Lincoln. ...
George Washington. ...
Napoleon Bonaparte. ...
Franklin D. ...
Winston Churchill
TM
Find three websites that offer advice on how to manage restaurant staff well. Make sure that at least one of these sites is from an established source such as a professional organization or an expert in the field. Provide the links for the sites that you used and the article titles.
Then use your chosen sites to answer the questions:
1. What ideas or themes do the websites you chose have in common? Select two common themes and explain why they are important.
2. Other than the themes just discussed, what do you think is the best piece of advice that you read? Explain vour answer
3. Which piece of advice that you read about might be hardest to implement? What challenges could it potentially create?
4. Consider the advice from the employee's point of view. Discuss the point you read about that you think employees would appreciate most.
5. If you had to recommend one of the websites/articles as being the most useful, which would it be and why?
Answers
The "Managing Employees" article from the National Restaurant Association would be one of the most helpful if I had to choose one of the websites or articles.
Three websites provide guidance on effective staff management for restaurants:
National Restaurant Association (https://restaurant.org/)
Toast Tab (https://pos.toasttab.com/)
Up serve (https://upserve.com/)
Write the Answers of he following Questions of the chosen sites?The effective communication and training themes are common to all of the websites. It is important to communicate well because it helps to reduce misunderstandings and improve teamwork among employees.
I read that providing employees with regular feedback was one of the best pieces of advice.
The suggestion that may be hardest to carry out is to consider representatives responsible for their presentation.
The significance of creating a positive work environment is one aspect that employees would appreciate the most.
The "Managing Employees" article from the National Restaurant Association would be one of the most helpful if I had to choose one of the websites or articles.
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Why would a student choose not to study for an exam even though she knows from past experience that she performs better on exams when she has spent time studying?
Answers
The mindset of self-confidence in the student pushes him/her not to study for an exam.
What is self-confidence?Being clear-headed about whether a theory or forecast is true or if a particular plan of action is the best or most effective is a state of confidence. Since the Latin word for confidence, fire, means "to trust," having self-confidence is the same as having faith in oneself.
In contrast, arrogance or hubris is the state of having unwarranted confidence—believing something or someone is right or capable when there is no support for this conviction. The presumption, sometimes known as overconfidence, is an overwhelming faith in one's own ability to achieve, with little concern for the possibility of failure.
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The most likely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error. Suppose each variable turns out to be elther 10% higher or 10% lower than the Initial estimate. The project will last for 10 years and requires an initar investment of $1. million, which will be depreclated stralght-ine over the project Iffe to a final yolue of zero The fim's tax rate is 21%, and the required rate of return is 14%. a. What is project's NPV in the best-case scenarlo, that is, assuming all varlables toke on the best possible value? b. What is project's NPV in the worst-case scenarlo? Note: For all the requirements, a negatlve amount should be lndicated by a minus slgn. Enter your answers in dollars, not in millions. Do not round Intermedlate calculotions. Round your answers to the nearest dollar amount.
Answers
To calculate the project's NPV in the best-case scenario and worst-case scenario, we need to consider the estimated variables and their potential variations. Let's denote the initial estimates as I, the best-case scenario as B, and the worst-case scenario as W.
Given information:
Initial Investment (I) = -$1,000,000
Tax Rate = 21%
Required Rate of Return = 14%
Project Duration = 10 years
a. NPV in the best-case scenario (B):
In the best-case scenario, each variable is 10% higher than the initial estimate. Therefore, we can calculate the NPV using the following formula:
\(NPV(B) = -I + (B1 / (1 + r)^1) + (B2 / (1 + r)^2) + ... + (Bn / (1 + r)^n)\)
Where B1, B2, ..., Bn are the cash flows in each year in the best-case scenario, and r is the discount rate (required rate of return).
Since the project lasts for 10 years and the initial investment is depreciated straight-line to a final value of zero, the cash flows in each year will be the same.
Cash flows (B) = (Revenue(B) - Expenses(B)) * (1 - Tax Rate)
= (1.1 * Revenue(I) - 1.1 * Expenses(I)) * (1 - 0.21)
Using this formula, we can calculate the cash flows in the best-case scenario, and then calculate the NPV.
b. NPV in the worst-case scenario (W):
In the worst-case scenario, each variable is 10% lower than the initial estimate. Similarly, we can calculate the cash flows in the worst-case scenario and then calculate the NPV using the same formula as above.
Cash flows (W) = (Revenue(W) - Expenses(W)) * (1 - Tax Rate)
= (0.9 * Revenue(I) - 0.9 * Expenses(I)) * (1 - 0.21)
Using this formula, we can calculate the cash flows in the worst-case scenario, and then calculate the NPV.
Please provide the estimated values for revenue and expenses so that we can calculate the NPV in the best-case scenario and worst-case scenario.
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The pipe located underneath Jiro’s kitchen sink was leaking and he did not know how to fix it. He called a plumber who agreed to come fix the leaking pipe in exchange for $125 plus the cost of any parts. The plumber went to Jiro’s home, removed the old pipe that was leaking, and replaced it with a new pipe that the plumber brought with her. When the plumber was finished, she told Jiro that the total cost was $140 and Jiro promptly paid her. Was this a voluntary exchange? Why or why not?
A
Yes, because both parties willingly entered the exchange and benefited from it.
B
Yes, because one party exchanged money with another party for a good or service.
C
No, because Jiro was not aware of the final cost before he agreed to the exchange.
D
No, because the plumber’s service was not equal in value to the money paid by Jiro.
Answers
Answer:
A
Explanation:
It’s not b
The given statement clearly states that it was a voluntary exchange because both parties willingly entered the exchange and benefited from it. Hence, Option A is correct.
What is a voluntary exchange?
Buyers and sellers engaging in market exchanges voluntarily and freely is known as voluntary exchange. A basic tenet of both classical and neoclassical economics, which serve as the foundation for modern mainstream economics, is voluntary exchange.
A transaction when two persons freely exchange products or services is referred to as a voluntary exchange. This happens in a market economy, a form of economy where both parties to an interaction benefit from it and come out ahead than they did before.
Given that both parties entered the voluntary exchange and benefited from it, it is apparent that the transaction was voluntary.
Therefore, Option A is correct.
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Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.
MAY ACCOUNTS
CHECKING
$860.00
REVENUE
FIXED EXPENSES
VARIABLE EXPENSES
CARD PURCHASE
$300
SAVINGS
$1,006.68
DOG FOOD
CAT FOOD
PET TREATS
PET SUPPLIES
$3,650
$2,850
$1,650
$1,800
RENT
$2,000
SALARIES
$2,000
UTILITIES
$1,000
PRODUCT STOCK $4,000
TOTAL
$9,950
TOTAL
$9,000
TOTAL
$300
ENTER MIA'S TOTAL PROFIT/LOSS FOR THE MONTH IN THE BOX BELOW, THEN CLICK SUBMIT.
$
SUMIT
Answers
Answer:
Loss
Explanation:
Because she started with 860.00 then ended with 300
Answer:
350
Explanation:
I guessed
Activity 4
எப்பMdwood
Erik wants to calculate the break-even point for the number of jobs needed for the new
transport service. He has given you the following figures for the first month of operation.
Fixed costs
£60.00
Variable costs for each job £3.50
Selling price for each job £18.50
The formula used to calculate the break-even point for each job is
Break-even point =
Fixed costs
(Selling price - variable cost)
(a) Using the figures given, calculate the break-even point.
(2)
Show your workings.
Answers
Answer:
=4 jobs
Explanation:
As per contribution margin theory,
the formula for calculating the break-even point is as below
Break-even point = fixed cost/ contribution margin per unit
for this transport service
Fixed costs £60
contribution margin per unit = selling price - variable expenses
= £18.50 - £3.50
=£15
Break-even points =£60/£15
=4 jobs
What does the concept of scarcity explain?choose three answers
Answers
The concept of scarcity explains:
why consumers are willing to pay high prices for items.why decisions must be made on how to use resourceswhy a single resource has more value than another resource.Scarcity as an economic idea "refers back to the basic reality of lifestyles that there exists most effective a finite quantity of human and nonhuman resources which the first-rate technical expertise is capable of the usage of to provide most effective restricted most amounts of each economic appropriate. shortage in economics refers to whilst the call for for a resource is greater than the deliver of that aid, as assets are limited. shortage consequences in purchasers having to make selections on how high-quality to allocate assets a good way to satisfy all simple needs and as many desires as feasible. shortage refers back to the confined availability of a useful resource in contrast to the infinite desires. shortage may be with appreciate to any natural assets or with admire to any scarce commodity. scarcity can also be called paucity of sources.
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Answer:
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why a single resource has more value than another resource.
Explanation:
why a product could lose significant value over time.
why people continue to purchase different products.
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why resources can be both renewable and nonrenewable.
why a single resource has more value than another resource.
(i took the test)
Grace is waiting in her office to meet Joseph, the new sales representative for Powerslam shoe company. Joseph arrives promptly and Grace notices he is well-dressed, sounds intelligent, and has a firm handshake. Joseph immediately inquires about what shoe styles would sell best in Grace's store and how many pairs she is interested in ordering. He listens attentively to her reply. What key element in Joe's sales approach is lacking
Answers
Answer : Building rappport
Explanation:
Which best describes a tsunami?
large powerful wave caused by an earthquake
when the waves hit the shore at an angle and transport sand
alternating rise and fall of the ocean
an irregular climate event caused by ocean currents in the Pacific Ocean
Answers
Answer:
A. a large powerful wave caused by an earthquake
Explanation:
A tsunami is a series of extremely long waves caused by a large and sudden displacement of the ocean, usually the result of an earthquake below or near the ocean floor. This force creates waves that radiate outward in all directions away from their source, sometimes crossing entire ocean basins.
A tsunami is best described as a large powerful wave caused by an earthquake.
What is a tsunami?Tsunamis are usually caused by earthquakes or volcanic eruptions. A tsunami is when there is a powerful wave that orgingates from a water body It causes displacement of a large body of water.
Effects of a tsunami includes:
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Why are ethics important in the workplace?
Answers
Answer:
Ethics is important in a workplace because :
a) It creates a positive and safe work environment.
b) It helps to instill professional behavior in employees
c) It helps to maintain orderliness in an organization and prevents chaos from happening.
d) It prevents discrimination or favouritism in organizations.
e) Workplace Ethics ensures that all employees are treated fairly.
f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.
Explanation:
Ethics at a workplace or Workplace Ethics can be defined as the standards or regulations that are put in place by a firm or organisation that helps to guide the behavior or attitude of employees at work such that safe work ambience is created and employees relate in a professional manner to one another.
Examples of Workplace Ethics are:
a) Punctuality
b) Honesty
c) Loyalty
d) Productivity
e) Dependability
Ethics at the workplace in important because:
a) It creates a positive and safe work environment.
b) It helps to instill professional behavior in employees
c) It helps to maintain orderliness in an organization and prevents chaos from happening.
d) It prevents discrimination or favouritism in organizations.
e) Workplace Ethics ensures that all employees are treated fairly.
f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.
Answer: professional organizations
Explanation: took the test (:
Two common measures of influence are Cook's D and DFITS.
True/False
Answers
This statement is True.
Cook's D and DFITS are both commonly used measures of influence in statistical regression analysis. They help identify influential data points that have a substantial impact on the model's results.
Cook's D measures the influence of each observation by calculating the change in the regression coefficients when that observation is removed from the dataset. It considers both the magnitude of the change and the estimated standard error of the coefficients. Large values of Cook's D indicate influential observations that significantly affect the regression model's results.
DFITS, on the other hand, measures the influence of each observation by calculating the difference between the predicted values when that observation is included and excluded from the model. It assesses the impact of each observation on the model's predicted values. Large absolute values of DFITS indicate influential observations that have a substantial effect on the predicted outcomes.
Both Cook's D and DFITS are valuable tools for identifying influential observations that can affect the overall results and conclusions of a regression analysis. They help researchers assess the robustness and reliability of their models by pinpointing observations that may be driving the findings.
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the duo growth company just paid a dividend of $1.00 per share. the dividend is expected to grow at a rate of 30% per year for the next three years and then to level off to 5% per year forever. you think the appropriate market capitalization rate is 25% per year. a. what is your estimate of the intrinsic value of a share of the stock?
Answers
Based on the assumptions and calculations given, the estimated intrinsic value of one share is $8.98.
To estimate the intrinsic value of a stock, you can use the Dividend Discount Model (DDM), assuming the stock is valued based on future dividend payments. Therefore, we can calculate the intrinsic value.
Calculate expected dividends for the next three years.
Dividend Year 1:
$1.00
Year 2 Dividend:
$1.00 ˣ (1 + 30%) = $1.30
3rd Year Dividend:
$1.30 ˣ (1 + 30%) = $1.69
Calculate the terminal value representing the value of a stock over a three-year period in which dividend growth plateaus.
Final Dividend:
$1.69 ˣ (1 + 5%) / (0.25 - 0.05) = $11.27
Note:
Divide the final dividend by the difference between the market capitalization rate (25%) and the terminal growth rate (5%).
Calculate the present value of each dividend.
Present value of year 1 dividend:
$1.00 / (1 + 0.25)¹ = $0.80
Present Value of Year 2 Dividends:
$1.30 / (1 + 0.25)² = $0.93
Present value of the third year dividend:
$1.69 / (1 + 0.25)³ = $1.08
Present value of final dividend:
$11.27 / (1 + 0.25)³ = $6.17
Calculate the intrinsic value by summing the cash values of the dividends.
Intrinsic Value = $0.80 + $0.93 + $1.08 + $6.17 = $8.98
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Which sentence best completes the diagram?
Answers
When the Federal Reserve lowers the interest on reserves the prime rate decreases
When the prime rate decreases the economy slows down and consumers start to restrict the purchase and industries curtail to expand Hence Federal Reserve decreases the reserve ratio so that consumers and businesses take more loans and the economy pace upWhen the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses. This increases the nation's money supply and expands the economy. As reduced finance costs can encourage borrowing and investing, the Federal Reserve reduces interest rates to promote economic growth. Rates, on the other hand, might encourage excessive growth and subsequent inflation when they are too low, which would lower purchasing power and jeopardize the sustainability of the economic development.Learn more about reserve ratio here https://brainly.com/question/9058331
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When_
a business, there could be many departments or just a few.
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When running a business, there could be many departments or just a few.
What is a business?This is a term that is used to refer to an organization that is set up for the sake of gains or profits.
A business could be responsible for the delivery of a product or they could be involved in the rendering of services.
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Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT?
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All of the following, with the exception of conditions, are required.
Describe insurance.One party will agree to compensate another in the event of a certain loss, damage, or injury in exchange for a fee in order to safeguard oneself from financial loss. It is a risk management technique that is typically used to guard against the danger of a hypothetical loss that may or may not materialise.
An underwriter, insurer, firm, or carrier is a company that provides insurance. A person or organisation that obtains insurance is known as a policyholder, whereas a person or organisation that the policy protects is known as an insured.
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suppose real gdp was $196 billion in 2016,$200 billion in 2017 and $206 billion in2018. if the year 2016 is the base year, the gdp deflator increased by 5% between 2016 and 2017, and the growth of nominal gdp between 2017 and 2018 was 2%, from this information,the nominal gdp in 2018 was
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The nominal GDP in 2018 is would be equal to 206.98 billion with 2016 as base year .
The nominal GDP in 2018 can be calculated by using the following formula:Nominal GDP in 2018 = (Real GDP in 2016 x (1 + GDP Deflator)) x (1 + Growth of Nominal GDP)Therefore, the nominal GDP in 2018 is equal to (196 billion x (1 + 0.05)) x (1 + 0.02) = 206.98 billion.The GDP deflator measures the change in price level between two periods and is calculated by dividing the current year's nominal GDP by the base year's real GDP.In this case, the GDP deflator between 2016 and 2017 is 5%, which means that the price level in 2017 is 5% higher than that in 2016. The growth of nominal GDP between 2017 and 2018 is 2%, indicating that the nominal GDP in 2018 is 2% higher than that in 2017.The nominal GDP in 2018 can also be calculated without using the formula. Since the real GDP in 2016 is the base year, the nominal GDP in 2016 is equal to the real GDP in 2016, which is 196 billion.Then, since the GDP deflator increased by 5% between 2016 and 2017, the nominal GDP in 2017 is equal to 196 billion x (1 + 0.05) = 206 billion. Finally, since the growth of nominal GDP between 2017 and 2018 is 2%, the nominal GDP in 2018 is equal to 206 billion x (1 + 0.02) = 206.98 billion.In conclusion, the nominal GDP in 2018 is equal to 206.98 billion.To learn more about the GDP Deflator refer to:
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