Laserfiche WebLink
profit is generally assumed to be 10 percent of revenue, and dividends are approximately <br /> one half of profit, or 5 percent of revenue. If this 5 percent is paid in the form of dividends, <br /> $29,245 in personal income are generated. <br /> The sum of incomes generated in the form of wages and salaries as well as dividends <br /> constitutes the primary impact on personal income in the City due to the Contract in the <br /> year 1992. This impact amounts to $1,931,798. <br /> Multiplied Economic Impact - 1992 <br /> The primary impact represents only a portion of the Contract's total impact <br /> on personal income. Additional impacts from induced expenditures will occur as the primary <br /> spending results in subsequent rounds of spending. Expenditures due to the Contract with <br /> the City become income to others whose expenditures create more income. This spending, <br /> in turn, results in subsequent rounds of increased spending. As this cycle of repeated <br /> induced spending continues, each subsequent spending round will be smaller than the <br /> previous one, because in each round some portion of income will be saved, and some <br /> portion of the spending will flow outside the City, leaving a smaller portion in the City to <br /> be partially spent in the next cycle. <br /> "Multipliers" that estimate the magnitude of total (primary and induced) spending are <br /> estimated by economic researchers. While these multipliers are estimates, they represent an <br /> important part of the total impact. <br /> In Table 3., the primary impact on Santa Ana personal income is multiplied by a <br /> factor of 2.2 in order to obtain the total multiplied impact. We conclude, that the total <br /> 8 <br />