Answer:
B. Compared to the first economist, the second economist must be assuming either a larger induced increase in consumption, a smaller crowding out effect, or both.
Explanation:
Answer:
$50
Explanation:
Dividend discount model (DDM) is used to calculate intrinsic value of a stock. Since the dividends are expected to grow indefinitely, the formula will be as follows;
Price (P0) = D1 / (r-g)
where D1 = Next year's dividend = 2.50
r = required rate of return = 12% or 0.12 as a decimal
g = dividend growth rate = 7%
Price (P0) = 2.50/(0.12-0.07)
P0 = 2.50 /0.05
P0 = $50
Answer:
A=615.10
Explanation:
The balance after six years is the future value of 459 at a 5% interest rate.
The applicable formula is
A= P( 1+ r )^n
A = amount after six years
P= 459
r=5%
N=6 year
A= 459(1+5/100)^6
A = 459(1.05)^6
A=459 x 1.34
A=615.06
A=615.10
Answer:
Dr Cash 4,116
Dr Sales discounts 84
Cr Accounts receivable 4,200
Explanation:
Vander Company Journal entry
Dr Cash 4,116
(4,200-82)
Dr Sales discounts 84
Cr Accounts receivable 4,200
Calculation of Sales discounts
4,200*2%
=84
Merchandise
(4,600-400)
=4,200
