Select the Correct Answer for the Following

question 32

Short Answer

Select the correct answer for the following.
(a) If the MPC is 0.9, the size of the multiplier is:
(b) If the MPW is 0.15, the size of the multiplier is:
(c) If the MPC is 0.80, the size of the multiplier is:

(i) 5
(ii) 10
(iii) 6.67

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Definitions:

Cost of Equity

The return that a company must earn on the equity-financed portion of its investments to compensate its shareholders for assuming the risk of the investment.

Dividend Growth Rate

The dividend growth rate is a financial metric that measures the annualized percentage rate of growth of a company's dividend payments to its shareholders.

Market Price

The current market quote for the sale or purchase of an asset or service.