Answer:
d. changes in the supply of and/or demand for dollars in the global currency market.
Explanation:
Floating exchange rate can be defined as a system in the macro economics or in economic policy where mechanism of the currency price of any country or nation can be determined by the forex market which is based on the supply and the demands relative to some other country's currencies.
In result of the foreign exchange values, the currency value of one country fluctuates.
Thus in the context, the value of dollar of United States changes depending on the changes or exchanges of dollar in the global market of currency.
<span>Free enterprise is more likely to be observed in "mixed" economic system.
A mixed economic system refers to a financial framework that highlights qualities of both private enterprise and communism. A mixed economic framework secures private property and permits a level of financial flexibility in the utilization of capital, yet additionally takes into account governments to interfere in economic exercises to accomplish social points.
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Answer:
The value of the Share of Zeke after the new Expansion is $25.
Explanation:
As there was no growth in the dividend before change, Price of the share from a stable dividend payment can be calculated by following formula.
Price = Dividend / Required rate of return
As we have the share price and the dividend amount we need to calculate the required rate of return.
Required rate of return = Dividend / Price
Placing value in the formula
Required rate of return = $2.50 / $25.00 = 0.1 = 10%
After New Expansion
Dividend = $1.50
Growth rate = 4%
The share price can be calculated by the dividend growth formula, as follow
Price of share = Dividend / (Rate of return - growth rate)
Price of share = $1.50 / (10% - 4%)
Price of share = $1.50 / 6%
Price of share = $25
