a company has preferred stock that can be sold for $21.25 per share. the preferred stock pays an annual dividend of 3.5% based on a par value of $100. flotation costs associated with the sale of preferred stock equal $1.25 per share. the company's marginal tax rate is 35%. therefore, the cost of preferred stock is

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Answer 1

A company has preferred stock that can be sold for $21 per share. The preferred stock pays an annual dividend of 3.5% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.25 per share. The company's marginal tax rate is 35%. Therefore, the cost of preferred stock is 17.72%.

What is flotation cost?

When a corporation issues new shares, it must pay fees known as flotation expenses. New equity is more expensive than existing equity due to flotation costs. Analysts contend that in order to avoid permanently overestimating the cost of capital, flotation costs should be subtracted from future cash flows as a one-time charge. The overall expense a firm incurs while selling its securities to the general public is known as the flotation cost. It results from costs including registration, legal, and underwriting fees. Legal fees, certificate printing fees, registration fees, stock exchange listing fees, and underwriting fees are some of the expenses related to flotation.

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Related Questions

If a household's income tax increases by 80% when the household's income increases by 100%, then the tax system is:a) progressive.b) proportional.c) flat.d) regressive

Answers

If household income tax increases by 80%, if household income increases by 100%.  It is progressive tax system which is based on theory that higher income level, higher tax rate, and that high-income earners can afford to pay more.

What is Progressive Taxation?

A progressive tax is based on the concept of ability to pay, with a higher proportion of income coming from high-income groups than low-income groups. For example, a progressive tax system could impose a tax rate of 10% on low-income taxpayers, 15% on middle-income taxpayers, and 30% on high-income taxpayers.

Who benefits from progressive taxation?

On the plus side, a progressive tax system eases the tax burden for those who can't afford to pay. This leaves more money in the pockets of low-income people who are more likely to spend more on basic necessities, thereby stimulating the economy.

Is the income tax progressive or regressive?

In the United States, the federal income tax is a progressive tax. Tax rates are tiered from 10% to 37%. In 2022, if you are single and have taxable income of $15,000, your tax rate will be 12%, and if you are single and have taxable income of $600,000, your tax rate will be 37%.

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A large oil company requests ¢200 million of liability insurance to cover its oil business. State Insurance Company (SIC) has a reinsurance contract with Ghana Re that enables the coverage to be written immediately. Under the terms of the contract, SIC pays 30 percent of the losses and retains 30 percent of the premium. Ghana Re pays 70 percent of the losses and receives 70 percent of the premium, less a ceding commission that is paid to SIC. Answer the following questions:
a. What type of reinsurance contract best describes the arrangement between the two insurance companies? Explain your answer.
b. Supposing a ¢100 million covered loss occurs, how much will each insurance company have to pay? Explain your answer.

Answers

Answer:

a. The reinsurance contract between SIC and Ghana Re is a proportional reinsurance contract. This type of contract specifies that the reinsurer (Ghana Re) will share a fixed proportion of the premiums and losses with the ceding company (SIC). In this case, the contract specifies that Ghana Re will pay 70 percent of the losses and receive 70 percent of the premiums, while SIC will pay 30 percent of the losses and retain 30 percent of the premiums.

b. If a ¢100 million covered loss occurs, SIC will be responsible for ¢30 million of the loss, while Ghana Re will be responsible for ¢70 million of the loss. This is because the contract specifies that SIC will pay 30 percent of the losses, and Ghana Re will pay 70 percent of the losses. In terms of premiums, SIC will retain ¢60 million of the premium, while Ghana Re will receive ¢140 million of the premium, less the ceding commission that is paid to SIC.

Which of the following would be the first step in creating your personal financial plan?

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In the first Financial plan, establishing short-, medium- and long-term financial goals.

Explain in detail.

A financial plan outlines a person's long-term financial objectives and develops a method for achieving them. The plan needs to be thorough but also highly individualized to take the person's personal and family circumstances, risk tolerance, and expectations for the future into account.Financial objectives can be to set up an emergency fund, accumulate retirement savings, pay off debt, or get a better paying career.estimating your future financial, resource, and investment demands. identifying the funding sources. efficiently using or managing these funds. identifying the plan's risks and problems.

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Based on what Ursula’s seeing on her screen, Bonnie sees some potential red flags. What should Bonnie warn Ursula about?

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Because Ursula doesn't understand how checking accounts and checks cashing at Walmart operate, she believes that the only reason she should be paying overdraft penalties is that she consistently spends more money than she has in her account.

What is a checking account?

A checking account is a sort of bank account that enables simple deposits and withdrawals of cash for everyday use. For instance, you may use your debit card to withdraw cash, deposit a check you receive, or set up direct deposit to get your paychecks.

A checking account is designed for usage with everyday cash requirements. It serves as a person's main source of funding and allows for the withdrawal of cash for use in paying bills or making purchases.

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this change affects not only the market for cherries but other markets as well. assume that blueberries are a substitute for cherries. which of the following statements are true when considering the effect of the increase in the demand for cherries on the general equilibrium of an entire economy? check all that apply.
a-The change in the price of cherries will probably lead to changes in other markets, such as the market for blueberries.
b-Changes in other markets to respond to the cherries market could cause more changes to the cherries market in order for the economy to reach general equilibrium.
c-The change in the cherries market may cause firms that pick cherries to shut down, and the resources used by those firms may be used by firms entering other markets.

Answers

Businesses that pick cherries may close as a result of the changing cherry industry, and the resources they used may be repurposed by businesses entering new industries.

What are a few examples of economy?

A well-known example of an economy is the that has, which employs a nation's customs and history to guide the manufacturing and distribution of goods. A traditional economy's three primary pillars are agriculture, fishing, and hunting.

What instances from the world of business?

The study of resource scarcity is a key component of economic social science. It investigates factors that affect the production, distribution, and consumption of goods and services within an economy. It looks into how scarce resources are allocated among individuals, groups, and governments.

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and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.

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Government and not-for-profit accounting.

Management accounting information is intended to help managers within an organization make informed business decisions, whereas financial accounting is intended to provide financial information to stakeholders outside the organization. I'm doing it. The main functions of accounting are storing and analyzing financial information and monitoring financial transactions.

Accounting is used to prepare financial statements for a company's employees officers and investors. Accounting also helps ensure the disbursement of funds inside and outside the company. Should be adopted into public accounting on a fee basis. As an individual or as a member of an audit firm. Certified public accountants who meet state education experience and exam requirements can become certified public accountants.

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because the products of monopolistically competitive firms are ______ from other companies in their industry, the demand they face is ____ sloping

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Because the products of monopolistically competitive firms are differentiated from other companies in their industry, the demand they face is downward sloping.

What is meant by the monopolistically competitive firm?

When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition exists. A monopolistic competitive industry has minimal entry requirements, and decisions made by any one firm do not immediately affect those of its rivals.

Monopolistic competition is a sort of market structure in which numerous businesses are present in a given sector and make comparable but distinctive goods. There is no monopoly enjoyed by any of the businesses, and each one pursues its own interests without regard to those of the others.

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Compute the flexible-budget variances for the following two activity cost items (round unit costs to two decimal places and enter favorable variances as positive numbers and unfavorable variances as negative numbers):
Payment verification
Correspondence

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The Payment verification.

Price Verification describes the set of procedures that allow clients to verify or affirm the payment they have got made after shopping any products or services. This set of tactics can generally be carried out through the net by means of the purchaser itself.

Fee Verification is the technique of traders physically contacting the consumer's issuing financial institution or the card affiliation to validate the cardholder's records. The fee verification offerings to be had nowadays do now not offer any kind of assurance for fraudulent transactions.

The Verification method confirms that layout Synthesis has ended in a bodily architecture that satisfies the device requirements. at some point in a system's lifestyles cycle, layout answers at all stages of the physical architecture are validated to meet specifications.

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economic equity
The situation in which the outcome of an economic transaction is fair to each party. An outcome can usually be considered fair if each party enters into a transaction freely and is not unknowingly at a disadvantage.

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The situation in which the outcome of an economic transaction is fair to each party is known as economic equity.

The fairness and distribution of economic wealth, tax obligations, resources, and assets in a society are defined as economic equity.

Economic equality is the idea that everyone should be paid equally for a work, regardless of their ethnicity, gender, or other traits that have nothing to do with how well they can do the job. The most straightforward instance of economic equality gone awry is in the pay gaps between men and women.

More people can participate more actively and contribute in ways that improve the performance of the economy as a whole when there is greater economic justice.

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Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 3% stock, $20 par and 410,000 shares of $25 par common.

During its first four years of operations, the following amounts were distributed as dividends: first year, $33,000; second year, $74,000; third year, $80,000; fourth year, $110,000.

Determine the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0.00".

Answers

The  dividends per share on each class of stock for each of the four years is stated below:

What is a preferred dividend?

A preferred dividend is a payment made on a company's preferred shares that is allotted to them. Preferred dividend claims are paid before claims for dividends paid on common shares in the event that a corporation is unable to pay all dividends. 

Given:

Preferred stock dividend = Number of share ×value of share ×dividend %

= 60000 × 20 × 3% ==> 36000

1. Out of first year dividend of 33000, full 33000 will be paid to preferred stock.

Preferred stock dividend per share = 33000 / 60000 ==> 0.55

Equity stock dividend = 0

2. Out of second year dividend of 74000, 36000 & 4000 year one dividend will be paid to preferred stock. And balance will be paid to Equity stock(74000-36000-4000 = 34000)

Preferred stock dividend per share = 40000 / 60000 ==> 0.67

Equity stock dividend = 33000 / 400000 ==> 0.082

3. Out of third year dividend of 80000, 36000 will be paid to preferred stock. And balance will be paid to Equity stock(100000 - 36000 = 64000)

Preferred stock dividend per share = 36000 / 60000 ==> 0.60

Equity stock dividend = 64000 / 400000 ==> 0.16

4. Out of fourth year dividend of 110000, 36000 will be paid to preferred stock. And balance will be paid to Equity stock(120000 - 36000 = 84000)

Preferred stock dividend per share = 36000 / 60000 ==> 0.60

Equity stock dividend = 84000 / 400000 ==> 0.21

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In addition to place, promotion, and product, marketing managers also must make major strategy decisions about _____.
1. prey
2. press
3. price
4. privacy

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In addition to place, promotion, and product, marketing managers also must make major strategic decisions about 3. price.

Promotion refers to a variety of actions supposed to elevate more consciousness or development of an item. In phrases of a profession, promoting refers to advancing a worker's rank or position in a hierarchical structure.

A promoting is whilst an employee advances to a function that is categorized at a better earnings grade, or in sure situations, an acknowledgment of big more obligations within the equal grade.

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Most adults would erase all of their personal information online if they could. A software firm survey of 521 randomly selected adults showed that 61 ​% of them would erase all of their personal information online if they could. Find the value of the test statistic.

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312 individuals, or 61%, say they would delete their personal information from the internet if they could. The total is 312.32, however we must modify the response for persons.

What is the value of test statistic ?

We must apply the Rule of Three to determine the solution. Mathematical rules like the Rule of Three can be used to address proportional problem.

1. Since I am aware that 512 adults were polled, this percentage is 100%. We don't know how many people are in this room, but 61% of them claim that they would delete all of their personal information from the internet if they could  685 adults are 100% .

61% of X adults In this case, we must arrange the identical components in the same columns. Students who scored highly in percentage.

3. I must now cross off these facts. I must multiply 61 by 512. So:

61*512= 31232

4. Next, multiply the outcome by 100.

31232/100= 312.32

5. The total number of adults who would is 312.

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In which of the following instances would the deadweight loss on the tax of airline tickets increase by a factor of nine?
A The tax on airline tickets increases from $15 per ticket $60 per ticket
B The tax on airline tickets increase from $20 per ticket to $90 per ticket
C the tax on airline tickets increased from $15 per ticket to $135 per ticket
D the tax on airline tickets increase from $20 per ticket to $60 per ticket

Answers

The deadweight loss is going to have to happen when  the tax on airline tickets increase from $20 per ticket to $60 per ticket. Option D.

What is meant by deadweight loss?

The loss of overall welfare or the social surplus as a result of factors such as taxes or subsidies, price ceilings or floors, externalities, and monopoly pricing is known as "deadweight loss."

The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss. Deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.

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treasury stock: multiple select question. reduces stockholders' equity. is the number of shares authorized minus the number of shares issued. is a contra-equity account. is shares of stock no longer outstanding.

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The term "treasury stock," also referred to as "treasury shares" or "reacquired stock," refers to previously outstanding stock that has been repurchased by the issuing company from its stockholders.

As a result, there are fewer shares available for purchase on the open market. Depository stock remaining parts gave yet is excluded from the conveyance of profits or the computation of income per share (EPS).

A credit to the common stock and the additional paid-in capital (APIC) accounts is used to add to the equity section of the balance sheet when a company first issues stock. The APIC account shows the amount received above the par value, while the common stock account shows the shares' par value. This journal entry's offset is a debit to increase the shareholders' consideration in cash (or another asset) as a result of double-entry bookkeeping.

Commonly referred to as "treasury stock" or "equity reduction," Treasury shares reduce total shareholder equity. Treasury stock can be accounted for in one of two ways: the par value method and the cost method. The cost method disregards the par value of the shares and uses the value paid by the company for the repurchase; The cost of the treasury stock is included in the stockholders' equity section of the balance sheet using this approach. Stocks often have a low par value, like $1, but can be sold and bought back for a lot more.

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Most movie theaters offer discount ticket prices to students and senior citizens. This illustrates the _____ pricing objective.
a. subsidized
b. operations-oriented
c. profitability-oriented
d. service quality
e. patronage-oriented

Answers

E. This illustrates the patronage-oriented pricing objective.

Patronage-oriented pricing is a pricing strategy used by businesses to reward loyal customers, encourage more frequent visits, and increase customer loyalty. By offering discounted prices to students and senior citizens, the movie theater is attempting to create a loyal customer base.

This type of pricing strategy is often used by businesses in the hospitality, entertainment, and retail industries, as it allows them to attract customers who may not otherwise be able to afford their services or products.

By offering discounts to certain segments, the business can still make a profit, while also creating goodwill among customers who may be more likely to come back and B their friends.

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Calculating initial investment Vastine​ Medical, Inc., is considering replacing its existing computer​ system, which was purchased 2 years ago at a cost of $317,000. The system can be sold today for $191,000. It is being depreciated using MACRS and a​ 5-year recovery period​ (see the table LOADING...​). A new computer system will cost $498,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income and capital gains. a. Calculate the book value of the existing computer system. b. Calculate the​ after-tax proceeds of its sale for $191,000. c. Calculate the initial investment associated with the replacement project.

Answers

a) The book value of the existing computer system for Vastine Medical, Inc. is $152,160.

b) The after-tax proceeds of the sale of the existing computer system for Vastine Medical, Inc. is $23,304.

c) The initial investment associated with the replacement project is $307,000.

How is the book value of an asset calculated?

The book value of an asset represents the difference between the original cost and the accumulated depreciation.

The accumulated depreciation is the sum of the yearly depreciation expenses for the past periods.

Capital gains or losses arise as the difference between the sales proceeds and the book value of an asset.

Cost of the old computer system = $317,000

Accumulated depreciation after 2 years = $164,840 ($317,000 x 52%)

Book value after 2 years = $152,160 ($317,000 - $164,840)

Sales proceed = $191,000

Capital gains = $38,840 ($191,000 - $152,160)

Capital gains tax = $15,536 ($38,840 x 40%)

After-tax proceeds = $23,304 ($38,840 - $15,536)

Cost of a new computer system = $498,000

Thus, the initial investment for the replacement project is $307,000 ($498,000 - $191,000).

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Question Completion:

MACRS 5-year Declining Method:

Year     Depreciation Rate

1                     20%

2                    32%

3                    19.20%

4                    11.52%

5                    11.52%

6                    5.76%

according to michael porter, industry attractiveness can be identified based on the five forces that include ____ .

Answers

According to Michael Porter, industry attractiveness can be identified based on the five forces that include competitors, new entrants, suppliers, customers and substitutes.

What is an illustration of a replacement?

For instance, $1 banknotes can be substituted for other $1 bills. Furthermore, butter produced by two different companies is also regarded as an ideal counterpart since, although coming from two different companies, both kinds of butter perform the same duties.

"No substitute" – what does that mean?

When something is said to be incompatible with another, it is implied that it lacks some desirable characteristics that the other object possesses, making it undesirable. When you say something cannot be replaced, you're saying it's the only choice that can fully satisfy your needs.

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observations 1 2 3 4 5 6 num. of defects 10 18 13 15 9 12 the number of runs up and down for the preceding data is:
a. 3
b. 4
c. 5
d. 6
e. none of these

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Observations 1 2 3 4 5 6 num. of defects 10 18 13 15 9 12 the number of runs up and down for the preceding data is: 5

Runs up are observations whose total number is more than the total number of observations that came before them.

Runs down is the term used to describe the number of observations that are less than those that came before them.

The runs-up should include the 2nd, 4th, and 6th observations since they are higher than the 1st, 3rd, and 5th observations. The 2nd observation is likewise higher than the 5th observation.

Therefore, Runs-up = 2nd + 4th + 6th observations

                                 = 3

The 3rd and 5th observations should be included in the runs down since they are lower than the 2nd and 4th observations.

Therefore, Runs down= 3rd + 5th observations

                                     = 2

Therefore, Runs-up + Runs-down

                      3         +     2    =    5

Hence the correct option is C

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Based on information provided in the text, the ultimate goal of achieving customer satisfaction is to promote brand _________

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Based on information provided in the text, the ultimate goal of achieving customer satisfaction is to promote brand Brand Loyalty.

A brand is a good, service, or idea that is publicly set apart from similar ones so that it may be promoted and conveyed effectively. The process of building and promoting a brand's name, attributes, and personality is known as branding.

A brand is a promise a company makes to its customers. Establishing trust and fostering loyalty among your customers are the goals of a brand position in marketing. A strong brand purpose establishes an identity for your company, provides customers with a reason to remember you, and distinguishes you from rival brands.

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Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and a consumer purchase. a. Trueb. False

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Advertising professionals wish it were so, but there isn't always a clear correlation between a given marketing message and a consumer purchase. The given statement is true.

Direct marketing enables you to interact directly with individuals, rather than the mass market. With this highly customised and focused strategy, you may expand your company while saving money.

Top-of-mind awareness is when customers say that they recognize the brand when the name is offered to them. Betty is evaluating the impact of the marketing messages used by her company. She needs to keep in mind that motivating the receiver to take action is the main objective.

There are two goals for marketing communications. One is to develop and maintain consumer preference and demand for the product. The sales cycle can also be shortened.

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Assume that one year ago, you bought 140 shares of a mutual fund for $18 per share and that you received an income dividend of
$0.14 cents per share and a capital gain distribution of $0.23 cents per share during the past 12 months. Also assume the market value
of the fund is now $22 a share. Calculate the total return for this investment if you were to sell it now. (Negative amount should be
indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

The return investment is -$508.20 is the required answer for the given question.

What is Capital Gains Distribution?

A mutual fund or exchange-traded fund (ETF) will pay a percentage of the profits from the sales of stocks as well as other assets from its portfolio as a capital gains distribution. It indicates the investor's proportionate part of the fund's sales.

Income dividends = Income distribution per share × Number of shares

= $0.14 × 140

= $19.60

Capital gain distributions = Distribution per share × Number of shares

= $0.23 × 140

= $32.20

Change in market value = Sales price - Purchase price

= (Sales price per share - Purchase price per share) × Number of shares

= ($18 - 22) × 140

= -$560

Total return = Income dividends + Capital gains distributions + Change in market value

= $19.60 + $32.20 - $560

= -$508.20

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Cindy is a single taxpayer with two dependent children, ages 10 and 12. Cindy pays $3,000 in
qualified childcare expenses during the year. If her adjusted gross income for the year is $20,200
and she takes the standard deduction, calculate Cindy's earned income credit and dependent
care credit for 2021.

Answers

Hello,

I hope you and your family are doing well!

Answer:  Cindy's earned income credit for 2021 is $845.36 and her dependent care credit is $888.

(See below for the walk-through)! Consider giving this answer 5 stars and brainliest if you find it helpful.

To calculate Cindy's earned income credit and dependent care credit for 2021, we need to know the maximum amount of credit she is eligible for based on her adjusted gross income and the number of dependent children she has.

The maximum earned income credit for 2021 is:

$3,584 for one child

$5,728 for two children

The maximum dependent care credit for 2021 is:

$3,000 for one child

$6,000 for two children

Since Cindy has two dependent children and her adjusted gross income is $20,200, the maximum earned income credit she is eligible for is $5,728 and the maximum dependent care credit she is eligible for is $6,000.

To calculate the actual amount of credit Cindy will receive, we need to know the percentage of her adjusted gross income that she spends on qualified childcare expenses. Since Cindy spends $3,000 on qualified childcare expenses and her adjusted gross income is $20,200, the percentage of her income that she spends on childcare is:

$3,000 / $20,200 = 0.148

The earned income credit and dependent care credit are both calculated as a percentage of the maximum credit, with the percentage equal to the percentage of adjusted gross income spent on qualified childcare expenses.

Therefore, Cindy's earned income credit is:

$5,728 * 0.148 = $845.36

And her dependent care credit is:

$6,000 * 0.148 = $888

Happy Holidays!

Taxpayers purchased a home after December 15, 2017 which they use as their principal residence. Unless otherwise stated, they obtain a loan secured by their residence and use the proceeds to acquire the residence. What portion of the interest paid on such loan may Taxpayers deduct in the following situations:
(a) The purchase price and fair market value of the home is $350,000. Taxpayers obtained a mortgage for $250,000 of purchase price.
(b) The facts are the same as in (a), above, except that intro years Taxpayers have reduced the outstanding principal balance of the mortgage to $200,000 and the fair market value of the residence has increased to $400,000. In the later year, Taxpayers take out a second mortgage for $100,000 secured by their residence to add a fourth bedroom and a den to the residence.
(c) The facts are the same as in (b), above, except Taxpayers use their proceeds of the $100,000 mortgage to buy a Ferrari.
(d) The facts are the same as in (a), above, but additionally, towards the end of the current year when the outstanding principal balance of mortgage is $150,000, Taxpayers’ financial prospects improve dramatically and they purchase a luxury vacation residence in Florida for its fair market value of $800,000. They finance $550,000 of the purchase price with a note secured by a mortgage on the Florida house, use the house for 45 days a year, and elect to trade the residence as a qualified residence.
(e) The facts are the same as in (d), above, except that the mortgage on the Florida residence is $700,000.

Answers

The answer is option A that is the purchase price and fair market value of the home is $350,000. Taxpayers obtained a mortgage for $250,000 of purchase price.

Who Pays Taxes?

Any person or business that owes taxes to the federal, state, or local governments is referred to as a taxpayer. Taxes on both individuals and businesses are the main source of funding for governments.

What precisely is a taxpayer?

Americans are liable to income taxation by the United States government based on their international income. The following are considered U.S. individuals for tax purposes: a citizen by naturalization, or one who was born here or abroad to at least one American parent.

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Which of these are Internet job lead resources?

Answers

The statement that are Internet job lead resources  are: A. Classified ads, B. Corporate career centers.

What is classified ads?

Classified ads can be defined as a form of advertisement and it has to do with the  way in which company tend to  advertise their product or brand o  the internet or by making use of the newspaper.

On the other hand Corporate career centers can be defined as a corporate world that enables people to  find job as well enables people to gain professional skills among others.

Therefore the correct option is A, B.

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costs remain constant (within relevant range). they do not react or vary with production/sales levels.

Answers

Fixed costs remain constant (within the relevant range). Fixed costs do not vary with the same level of production.

Fixed costs are costs or business expenses that do not depend on changes in the amount of goods or services produced, so they will not change even if there is a change in the amount of goods and services produced within a certain range. Fixed costs are not affected at all or regardless of changes in the business activities carried out by the company.

Fixed costs in accounting are basically a type of cost that does not change or is static and will still be incurred both when no activities or production processes are carried out or when many activities are carried out. Fixed costs, for example, are salaries of employees. building rent, to excise fees. These costs must always be paid even if the company does not produce any output of goods or services.

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The actual money multiplier is lower than the theoretical maximum because of _____ in the economy.

Answers

The actual money multiplier is lower than the theoretical maximum because of leakages in the economy.

Money leaves the economy as a result of some transactions. That is, the funds are not being used by other sectors of the economy. Leaks are present here.

Banks holding surplus reserves and people, companies, and foreign organizations keeping cash are both significant leakages. As a result of these activities, the maximum amount of money that may be made from a certain deposit is decreased.

Large corporations have manufacturing facilities or factories in less developed nations. These factories generate revenue for the firm, which is subsequently moved out from the host nation's economy and into the economy of the corporation involved. Leakage is the economic loss of the products and/or earnings.

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Which of the following is true regarding the price elasticity of demand?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a
Demand is generally more elastic in the long run than in the short run.

b
Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices).

c
A demand curve that is flatter is relatively more elastic than a demand curve that has a steeper slope.

d
All of the above

Answers

All of the above are true regarding the price elasticity of demand. The correct option (d).

What is price elasticity of demand?

How much a product's usage alters in response to fluctuating prices is measured by price elasticity of demand. If a good's price elasticity is infinite, demand can fluctuate drastically even in the presence of tiny price variations. If price elasticity is greater than 1, the good is elastic; if it is less than 1, it is inelastic.

A good is completely inelastic if its price elasticity is zero, meaning that no amount of price variation will alter demand. Price elasticity is referred to as unitary elasticity if it is exactly 1 (price change causes an equal proportion change in demand). The availability of a substitute affects a product's flexibility.

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Which of the following is most likely to benefit from an appreciation in the United States dollar in the short run?
a. United States investors holding European bonds
b. Importers in foreign countries seeking raw inputs at a lower price
c. United States exporters selling capital equipment
d. United States tourists traveling to foreign countries
e. European consumers buying United States goods.

Answers

European consumers buying United States goods, is most likely to benefit from an appreciation in the United States dollar in the short run.

How does the American dollar impact the global economy?

When bought and sold on the international market, food and energy are frequently priced in dollars. Likewise, much of the debt due to developing countries. The International Monetary Fund conducted research that found that, whether or not the United States is involved, almost 40% of global transactions are conducted in dollars.

Because the US economy is stronger than the economies of many other nations and because the Federal Reserve keeps hiking interest rates of dollar is strong. Stocks of US companies that conduct business abroad suffer from a strong currency, but those of US exporters may benefit. The strong dollar fuels global inflationary pressures.

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_____ results when a corporation issues additional shares, resulting in a reduction of percentage of the corporation owned by shareholders.
a) dilution
b) preemption
c) restitution
d) novation
e) accretion

Answers

Dilution results when corporation issues additional shares, resulting in reduction of percentage of corporation owned by shareholders.

What is a share?

A share is a unit of equity ownership in a corporation's capital stock in the financial markets, and it can also refer to shares of mutual funds, limited partnerships, and real estate investment trusts. All of a company's shares are referred to as its share capital. A corporation's shareholder (or stockholder) is someone who owns shares in the business. The ownership connection between the company and the shareholder is expressed by a share, which is an undivided unit of capital. The face value of a share is its denominated value, and the sum of the face values of all issued shares is a company's capital, which may not correspond to the share's market value. A dividend is the money earned from owning shares.

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If firms in a competitive market are earning negative economic profits, we would expect firms to [A] the market, causing the market price to [B]

[A]- leave, enter, no change, uncertain
[B]- rise, fall, no change, uncertain

Answers

In a market that is competitive and where businesses are making money, new businesses will be motivated to enter the market.

What is a Competitive market?

Yes, even if a company is at a loss economically, it should nevertheless keep producing. Till P > = Minimum AVC, a company should keep operating and not stop producing. In this scenario, the company will generate enough income to pay its variable costs and continue operating.

In a completely competitive market, companies can only make or lose money in the short term. Because an unlimited number of enterprises generate uniform, endlessly divisible things, losses and profits are finally eliminated. If an industry's businesses are losing money, they will leave.

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