the value of the stock to an investor with a required return of 12% is $20.83.
What is stock?
Stock (also known as capital stock) in the financial industry refers to the shares into which possession of a company or corporation is divided. A single share of stock represents a fractional ownership interest in the company based on the total number of shares. This usually entitles this same shareholder (stockholder) to that portion of the company's earnings, the proceeds from the sale of company assets, or voting power, dividing these items frequently in proportion to the sums invested by each stockholder. Not every class of stock is created equal; some may have enhanced voting rights, no voting restrictions, or a specific priority to receive profits as well as liquidation proceeds pre or post other courses of shareholders.
i. Dividend per share is 2.5.
12% is the required rate of return.
Shares forever pay a fixed dividend.
ii. For a stock that consistently pays dividends
Dividend/required rate = Stock price
iii. Price of a share = 2.5/0.12 = $20.833
$20.833 is the current stock price.
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What most accurately describes the difference between diminishing returns and diseconomies of scale?.
Diseconomies - As the use of a factor increases in production while other factors remain constant, a declining return on that factor implies a declining marginal product.
What is diseconomies?
Diseconomies of scale are the financial disadvantages which economic actors experience as a result of growing their organisational size or their output, which leads to higher production costs per unit of goods and services. Economies of scale are opposed by the idea of diseconomies of scale. Diseconomies of scale are the characteristics of a business that cause average costs to rise as it expands past a certain size. All workers at a company should ideally communicate directly with one another so that they are fully aware of what the other employees are doing. There is no need for inter-employee communication in a company with just one employee. A two-person business needs a single line of communication that runs between the two employees.
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The possibility that poor sales were due to rejection of the health claims by the european union indicates that this product failure was primarily due to _______.
Answer:
NGL I DO NOT KNOW
Explanation:
my fault
myca corporation has a project with the following cash flows. what is the value of the cash flows today assuming an annual interest rate of 10.1 percent? year cash flow 1 $ 1,840 2 2,330 3 2,675 4 2,685
Assuming a 10.1% annual interest rate, the present value of the cash flows is $4148.85. (approx).
When the benefits of compounding over time are taken into account, an effective annual interest rate represents the true return on a savings account or any other investment that pays interest. It also cash flows displays the actual percentage rate of interest paid on any other debt, including loans and credit card debt.
The term "annual interest rate" refers to the actual interest rate on a loan or investment. The fact that the effective yearly cash flows interest rate accounts for the reality that higher effective interest rates will result from more frequent compounding periods is its most significant feature.
Given data,
Annual interest rate, r = 10.1 % ~ 0.101
The present value of the cash flows is calculated as follows:
PV1 = FV (1+r)
where FV= future value
r = annual rate of interest
n = time period
PV1 = 1640/ (1+0.101)1
= 1840/ 1.101
= 1671.20
PV2= 2330/ ( 1+0.101) 2
= 2330/ 2.202
= 1058.12
PV3 = 2675/ (1+0.101)3
= 2675/3.303
= 809.86
PV4= 2335/ (1+0.091)4
= 2685/ 4.404
= 609.67
NPV = \sum PV1+ PV2+ .....+ PVn
= 1671.20 + 1058.12 + 809.86 + 609.67
= 4148.85(approx)
Therefore, the value of the cash flows today assuming an annual interest rate of 9.1% is $4148.85 (approx).
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some companies extend their networks to their customers and suppliers in order to build innovative continuous inventory replenishment systems that would lock in their business. this creates a (n) information system.
This creates an intra enterprise information system.
Any information system that enhances the capabilities of enterprise business operations through integration is referred to as an enterprise information system (EIS).
In general, this implies providing high-quality services, handling big amounts of data, and being able to serve a sizable and perhaps complex organization or enterprise. All areas and levels of a company must be able to use an EIS. The word "enterprise" can mean several different things.
Frequently, the phrase is exclusively used to describe extremely massive institutions, such as public sector or multinational corporations. Due to the term's status as a buzzword in corporate jargon, it can be applied to almost anything.
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8. which of the following is not a typical concern for inventory and scheduling when implementing a lean system? a. frequent, small shipment must be arranged with suppliers. b. changeover times must be reduced. c. production schedules must be stabilized. d. companies can increase setup times because deliveries are frequent
When developing a lean system, the following is not a frequent issue for inventory and scheduling: Deliveries are frequent, so businesses can extend setup times.
What lean idea aids in supply chain coordination, inventory level regulation, and production startup?The establishment of a process' production numbers through the use of Kanban is essential since it supports JIT production and ordering systems. It's frequently referred to as lean manufacturing's "nervous system."
Describe benefits of lean systems.Lean manufacturing boosts output while enhancing efficiency and reducing waste. As a result, there are numerous advantages: higher product quality Increased productivity frees up personnel and resources that would have been spent for innovation and quality assurance.
Delivering value as defined by the client, eliminating waste, and continuous improvement are the three pillars of the Lean approach to business processes, which was originally inspired from the hugely influential Toyota production system (TPS).
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a data analyst is using data from a short time period to solve a problem related to someone’s day-to-day decisions. they are most likely working with small data.
TRUE, A data analyst is using data from a short time period to solve a problem related to someone’s day-to-day decisions.
In order to answer a problem involving a person's daily decisions, a data analyst uses data from a brief time period. Most likely, they are dealing with tiny data.
A choice that you make about something after thinking about several possibilities: She has had to make some very difficult decisions. The company will reach/come to/make a decision shortly.
An analyst is someone who collects data, examines it, and then draws conclusions based on what they discover. They search for patterns in the data and use what they discover to inform important decisions and adjustments. In many different industries, analysts seek to increase productivity and aid in strategic decision-making.
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a(n) is a specific type of strategic alliance in which two or more companies join forces without merging the companies and share resources, risks, and profits. group of answer choices
A joint venture is a specific type of strategic alliance in which two or more companies join forces without merging the companies and share resources, risks, and profits.
In the field of business, we can describe a joint venture as a collaboration between two or more two companies that join hands on a common project. Everything that is related to this project i.e the materials and the risks associated with the output that is gained is all divided equally among the companies that are a part of the joint venture.
A joint venture is a type of strategic alliance that helps in building more revenue and reduces the threats imposed by individual loss.
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employees who receive high performance evaluations for their one year accomplishments are awarded a fixed cash award. this is an example of tying evaluations to what element of the pay mix?
Employees who receive high performance evaluations for their one year accomplishments are awarded a fixed cash award. this is an example of Short Term Incentives.
The term "short term incentive administration" describes rewards that are delivered over a period of up to one year. Short-term incentives, also known as annual incentives, are frequently linked to actions that have the biggest influence on business performance and are intended to motivate target achievement. Sep 21, 2020 For each period, "Fixed Cash Amount" refers to the sum shown in the table below across from that time. The Obligors shall not, during the periods set forth in the tables below, permit the Available Cash Amount to be less than the lesser of (x) the Fixed Cash Amount (as defined below) for such period and (y) the Variable Cash Amount at such time, at the close of business on the last Business Day in any calendar week.
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Match the examples to the stages of the buying and decision-making process.
The customer decides which product to buy. - Making a purchase decision.
The customer looks for information on products and services. - Searching for information.
The customer compares various options. - Looking at options.
The customer pays for a product. - Buying the product or service
The customer reflects on what he or she has bought. - Purchase reflection.
The customer realizes that something is needed. - Problem recognition.
What is a buying decision process?In marketing, this decision-making process are used by the consumers regarding the market transactions before, during and after the purchase of a good or service. Such process can be seen as a form of a cost-benefit analysis in the presence of multiple alternatives.
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often presented visually on an executive dashboard, what type of report focuses attention on business processes whose performance falls outside of the tolerance ranges defined a kpi metric? question 41 options: 1) annual 2) exception 3) batch 4) drill-down 5) ad hoc
The exception report focuses attention on business processes whose performance falls outside of the tolerance ranges defined by a KPI metric.
The answer is option 2.
Financial KPIs (key performance indicators) are metrics companies use to the song, measure, and analyze the economic health of the company. Those economic KPIs fall below a spread of categories, consisting of profitability, liquidity, solvency, performance, and valuation.
Types of KPIs include Quantitative signs that can be presented with a variety of. Qualitative signs that can't be offered as a variety of. main signs that could predict the final results of a system.
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at the beginning of the year, a company estimates total overhead costs of $1,120,000. the company applies overhead using machine hours and estimates that it will use 2,800 machine hours during the year. what amount of overhead should be applied to a job that uses 25 machine hours that year?
A project that requires 25 machine hours in a year should have overhead of $10,000 added to it.
Machine hrs rate = Total overhead cost/ total Machine hrs
= $1,120,000/2,800 hrs
= 400 per hr
Overhead applied for Job = Machine hrs rate* Machine hrs used
= 400*25
=$10,000
The recurring costs of a firm that aren't specifically related to providing a machine hours good or service are referred to as overhead. The amount that a business needs charge for its goods or services in order to turn a profit is crucial overhead information for planning as well as pricing considerations. In a nutshell, overhead is any expense that is machine hours incurred to maintain the business but is not directly connected to a particular good or service.
Regardless of how much or how little a firm sells, overhead must be paid on a regular basis. For instance, a service-based company overhead with an office overhead has overhead costs in addition to direct expenditures (like labor and supplies) for providing its service, such as rent, utilities, and insurance.
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the following best describes the global supply chain cycle from beginning to end: warehouses to distribution centers to suppliers to transporters to customers.
No, warehouses to distribution centers to suppliers to transporters to customers do not best describes global supply chain from beginning to end therefore it is false.
A supply chain is a collection of individuals and companies held to account for creating a product and gaining it to the end user. The input materials production companies are the initial links inside this chain, and the final link is the van which provides the finally completed product to the client.
The significance of supply chain can be seen in the lowered costs and enhanced productive capacity that arrive from an optimization distribution chain. Companies are working to augment their supply chains in order to decrease expenses and maintain competitive advantage. Effective supply chain helps the companies to compete better and create good customer and also help in overall reduction of cost.
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an accounting statement that presents predicted amounts of the company's assets, liabilities, and stockholders' equity as of the end of the budget period is called a(n): a) master balance sheet. b) budgeted income statement. c) pro forma balance sheet. d) pro forma cash flow statement. e) operating balance sheet.
Income statement, statement of stockholders’ equity, balance sheet, and statement of cash flows are the proper order.
Every company prepares financial statements to inform the intended users of its financial performance.These claims are connected to one another, thus they can be made in any order.Since the information needed to complete the income statement does not come from other statements, it is prepared first.Statement of Stockholders’ Equity is prepared following the income statement because it requires the balance of net income or loss from the income statement.
The balance sheet is then created because it needs the information on stockholder equity.Because it needs information from the previous year as well, the last statement of cash flows is created.This is essentially the presentation of a business’s plans in financial terms. It is claimed to be a strategy that will assist you in keeping track of your finances, managing your money sensibly, and achieving your short-, medium-, and long-term goals on schedule.
The sales, purchases, cash, and income statements are the significant configurations in which the majority of master budgets are constructed. According to the selling, general, and administrative budget and the pro forma revenue statement, budgeted sales commissions are clearly displayed.
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Your credit report is the equivalent of your financial what?
A: Goals and dreams
B: Family budget
C: Report Card
D: Car payments
Answer:
financial nothingness is equivalent to space time travel
got em
a circus’s goal of redesigning the circus experience is being completed through the coordination of many marketing activities, such as value pricing, a product that includes exciting performances, tent venue locations, and promotion. these activities make up the for the circuses. a. value of marketing b. marketing environment c. target market d. marketing mix
Given the information provided above, the business operations described make up the "marketing mix" of the circuses. (Option D).
What is Marketing Mix?The word "marketing mix" refers to a business foundation model that has historically been built on product, price, place, and promotion. The marketing mix is defined as "the set of marketing instruments used by the organization to pursue its marketing objectives in the target market."
The marketing mix is a method for examining the many aspects of promoting a brand and its products. It provides general rules for putting the right things in the right place, at the right time, and at the appropriate price.
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define telecommuting. give two advantages for the employer and two advantages for the employee. give two problems associated with telecommuting. 2. what does the electronic communications privacy act (ecpa) cover? why does it make specific exceptions for business systems? 3. give two arguments for and two arguments against electronic employee monitoring.
Employee morale ultimately improves as a result of telecommuting's flexibility, healthy work-life balance, and other advantages.
What are the benefits and drawbacks of working remotely for an employee?
Communication is hampered because the employee interacts less personally with bosses and coworkers. Managers may find it more challenging to oversee a remote worker. The employee might have more distractions at home, which would lower productivity. Working with colleagues had a social component that you could miss.
What are the drawbacks of working remotely for employees?
professional isolation. Employee exclusion may result from a poor or absent working environment. Employees may experience emotional isolation if they are unable to interact with coworkers or share a common area.
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total fixed costs on a super-variable costing income statement will be blank than total fixed costs on a traditional variable costing income statement. multiple choice question. the same as higher than lower than
The right answer is an option (b). Total fixed costs on an income statement using super-variable costing will be higher than total fixed costs on an income statement using regular variable costing.
Give an example of the difference between fixed and variable costs.Over a predetermined time period, fixed costs are constant. Depending on how well the business is doing, variable costs may go up or down. Rent, taxes, and insurance are a few examples of fixed costs. Credit card fees, direct labor, and commission are a few examples of variable costs.
On an income statement, how are fixed and variable costs determined?Add up all of your production costs first. Be certain to understand which costs are fixed and which are changeable. Add up your variable costs and divide by the quantity of units you generated to get your total cost of production. You will then be given your overall fixed cost.
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if the fomc wished to generate faster economic growth, they could issue a policy directive to the federal reserve board trading desk to purchase u.s. government securities.
True: If the FOMC wished to generate faster economic growth, they could issue a policy instructed to the federal reserve board trading platform to purchase U.S. government security.
What is Economic growth?
A rise in the output of products and services over a given time period is referred to as economic growth. The calculation needs to account for inflation. A country's economy is said to be growing when the value of its goods and services rises, generating more revenue for companies. Consequently, stock prices increase. This provides businesses with money to expand and recruit more workers. The number of jobs added increases income. More purchases are made because consumers have more money to spend on more goods and services. All nations seek healthy economic growth for this reason.
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green leaves seeks to encourage increased use of reusable bags by creating a new market space for "shoppers with a conscience." to achieve this, the firm creates differential value for consumers and makes contributions to society by reducing costs and environmental impact. which overall environmental marketing strategy does this exemplify?
This demonstrate the overarching environmental marketing strategy's sustainable value innovation by reducing costs and environmental impact.
Innovation is the practical application of concepts that leads to the launch of new products or services or enhancements in the provision of existing products or services. Innovation is described by ISO TC 279 in the standard ISO 56000:2020 as "a new or altered entity realising or redistributing value." Lego has been converting the components of its renowned bricks to biodegradable plastics with an oil base. Additionally innovative were the first electric cars that entered the automotive market and the ongoing development of new batteries with increased range. A marketing strategy is a long-term plan for attaining a company's objectives through comprehending client needs and forging an identifiable and long-lasting competitive advantage. marketing strategy includes everything, from defining who your target audience is to selecting the methods you will use to communicate with them.
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__________ _________ compare alternatives by determing the qualitative factors that should be included as part of the decision, assigning weights related to their importance, and then ranking different alternatives to allow comparisons.
Quantitative factors compare alternatives by determining the qualitative factors that should be included as part of the decision, assigning weights related to their importance, and then ranking different alternatives to allow comparisons.
Qualitative factors can be considered as results that cannot be quantified or measured and depend on subjective knowledge.
On the other hand, Quantitative factors can be considered as numerical outcomes that can be easily quantified or measured. They may involve generic empirical information or monetary values that represent the magnitude of the financial effect on the reporting company or organization. It expresses a certain amount or range. Generally, there is a unit of measurement associated with this type of data. Hence, it makes sense to assign bounds to this data, and also arithmetic operations can be applied to this data to allow comparisons.
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a portfolio consists of $2200 in a mmmf and $7800 in a risky stock that has an expected return of 11.3%. the riskfree rate is 4.1%. what is the expected return on the portfolio? (report your answer to the nearest hundredth and report the percent as 10.32 rather than .1032)
The expected return on the stock portfolio is 9.518 %.
A stock market portfolio is an investor's collection of shares, price range, and other marketplace-traded securities. In widespread, investment portfolios often consist of some coins and bond investments. A varied portfolio holds a selection of various property, varied in length, enterprise, and other factors.
For years, many financial advisors endorsed building a 60/forty portfolio, allocating 60% of capital to stocks and 40% to constant-income investments along with bonds.
An investment portfolio is a collection of assets and can include investments like stocks, bonds, mutual budget and change-traded funds.
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why is separating the impact of analytics from that of other computerized systems a difficult task? the trend is toward integrating systems. it is not an organizational priority. businesses do not typically track the sources of successful projects. software tools are not sophisticated enough.
Separating the impact of analytics from that of other computerized systems is a difficult task because the trend is toward integrating systems.
Computerized system validation can be described as the process of testing or qualifying or validating a regulated computerized system to ensure that it does exactly what it is designed to do in a consistent and reproducible manner that is as safe, reliable as paper records, and secure.
Computerized systems are includes software, hardware, operating system software, application software, supporting documentation, e.g. automated laboratory systems, control systems, manufacturing, clinical, or compliance monitoring database systems, etc.
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john’s friend, michael, just got fired from his job as a server at a local restaurant. after michael is done telling his story about his encounter with an irate customer and his boss, john says, "so, your boss took the customer’s words over yours?" what is john doing here in his response? question 4 options:
In a case whereby john’s friend, Michael, just got fired from his job as a server at a local restaurant and narrated the issue to John, and John says "so, your boss took the customer’s words over yours, then John means that his boss do not trust him.
What is the trust between the employee and employer?The trust between the employee and employer can be seen as one that do make the relationship between the employer as well as the employee to be strong.
It should be noted that the Trust in the workplace implies that there is a culture of honesty as well as psychological safety which exist between the employee as well as the employer, hence in the case whereby the employer is acting against the employee as a result of the comments from the customer without any investigation implies that there is no trust between them which is not adviceable.
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Why was the federal reserve system set up with twelve regional federal reserve banks rather than one central bank, as in other countries?.
The Federal Reserve machine changed into installation with 12 local banks because of conventional American hostility to centralized authority and crucial bank, this sort of machine changed into setup to diffuse the energy and distribute it a whole lot extra evenly.
The required details for Federal Reserve System in given paragraph
The Federal Reserve System is the crucial banking machine of the United States of America. It changed into created on December 23, 1913, with the enactment of the Federal Reserve Act, after a chain of monetary panics brought about the preference for crucial manage of the financial machine with a purpose to alleviate monetary crises. Over the years, activities which includes the Great Depression within side the Thirties and the Great Recession at some stage in the 2000s have brought about the growth of the jobs and duties of the Federal Reserve System.
Congress hooked up 3 key targets for financial policy within side the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-time period hobby rates. The first targets are now and again called the Federal Reserve's twin mandate.
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industry, forestry and energy production are top sources of greenhouse gases. of the remaining sources listed below, which produces the greatest amount of greenhouse gases? transportation agriculture residential and commercial buildings water and wastewater
Due to automation and reliance on vehicles like cars, trucks, aeroplanes, and ships, transportation alone is responsible for the greatest amount of greenhouse gas emissions.
What is greenhouse gas?
Any gas that has the ability to absorb infrared radiation emitted from the Earth's surface and reradiate it to the surface is a greenhouse gas and contributes to the greenhouse effect. As far as greenhouse gases go, carbon dioxide, methane, as well as water vapour are the most significant. (Surface-level ozone, nitrous oxides, as well as fluorinated gases trap infrared radiation to a lesser extent.) Even though they make up a small portion of all atmospheric gases, greenhouse gases have a significant impact on the energy budget of Earth system. Throughout Earth's history, greenhouse gas concentrations have varied significantly, and these variations have resulted in significant climate changes over a wide range of timescales. In general, the levels of greenhouse gases have been highest during warm seasons and lowest during cold ones.
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Answer:
Industry, forestry and energy production are top sources of greenhouse gases.
Of the remaining sources listed below, which produces the greatest amount of greenhouse gases?
Agriculture
Water and wastewater
Transportation
Residential and commercial buildings
Explanation:
Correct Answer:
Agriculture
simone takes ownership of the project to which she was assigned. she provides the leadership and vision that will take the product from the idea stage to the final customer. simone is a(n) .
Simone assumes control of the task she was given to complete. She gives the project the direction and vision needed to see it through to the end user. A product spokesman is Simone.
Any activity that is meticulously planned to accomplish a specific goal, whether it is done alone or in a group, and may include research or design, is referred to as a project. A different perspective sees a project as a series of activities that must be completed in a specific order and under specific financial and other constraints. A project may be a transient (rather than permanent) social structure (work system), staffed perhaps by teams (inside or across organizations), to carry out specific tasks under time limitations. A project could be a component of a larger program management effort or work independently.
Be aware that open-source software "projects" or artists' musical "projects" (for instance) could not have clearly defined team members, exact planning, or time limits.
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as an alternative, lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing and the balance with short-term financing. the same interest rates apply as in part a. earnings before interest and taxes will be $200,000. what will be lear’s earnings after taxes? the tax rate is 30 percent.
The value of earning after tax of Lear will be $35,875, considering value of current asset, fixed asset and value of earnings before interest and taxes.
The following information is provided:
Temporary current assets =$450,000
Permanent current assets =$350,000
Fixed assets =$600,000
Total assets =$14,00,000
Tax rate = 30%
Calculation of interest expense in the alternative financing plan
Long-term interest expense = asset to be financed*interest rate
= (600,000+350,000+1/2* 450,000)*10%
= $1,17,500
Long-term interest expense = asset to be financed*interest rate
= [$450,000 + ½ ($350,000)]*5%
= $31,250
Total interest expense = $1,17,500+$31,250 = $148,750
Calculation of earnings after tax:
Earnings after taxes= Earnings before interest and taxes-interest expenses- tax
= $200,000-$ 148,750-$15,375
= $35,875
The complete question is here:
Lear inc has 800,000 in current assets, 350,000 of which are considered permanent current assets. In addition, the firm has600,000 invested in fixed assets.
a) Lear wishes to finance all fixed assets and half of its permanent current assets with long term financing costing 10percent. Short term financing currently costs 5 percent. Lear’s earnings before interest and taxes are 200,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30 percent.
b) As an alternative, Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be 200,000. What will be Lear’s earnings after taxes? The tax rate is 30 percent.
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Suppose the following table shows the components of aggregate expenditure for an economy when disposable income is $400 billion and when it is $500 billion:
Disposable Income
$400 billion $500 billion
Consumption $300 billion $400 billion
Investment $100 billion $100 billion
Government Purchases $175 billion $175 billion
Net Exports $200 billion $180 billion
Aggregate Expenditure $775 billion $855 billion
On the following graph, use the blue curve to plot investment as a function of disposable income:
According to the table, investment is:
a. Autonomous with respect to disposable income
b. Responsive to changes in interest rates
c. Responsive to changes in business expectations
d. Correlated with consumption
A terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously to
Options: slope upward; shift up; shift down; slope downward
The correct option is (B) Responsive to changes in interest rates
Investment in economics refers to the acquisition of capital goods for use in the creation of commodities and services. Demand for investments might alter due to a variety of reasons, including the real interest rate, production costs, taxes, adjustments in inventories, and expectations.
According to the table, investments total $100 billion, compared to $400 billion in available income. Investment stays the same while disposable income rises from $400 billion to $500 billion. Investments are not reliant on available cash. Investments are therefore independent of available funds. If we created an investment function, the investment curve at $100 million would be a horizontal line with investment on the vertical axis and disposable income on the horizontal axis.
Generally speaking, any circumstance that causes firms as a whole to anticipate a lesser return on their investment causes investment to decline. Another factor is expectation. The investment will decrease if CEOs become less optimistic about upcoming sales. Consequently, the investment function you previously developed would fail if a terrorist strike increased the pessimism of business projections.
Therefore option B is correct.
COMPLETE QUESTION is attached in the files section.
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abc company produces high-end electric race cars primarily for the use in the world rally championship. their main focus is on research and development (r
The ABC Company makes premium electric race cars that are mostly used in the world rally championship. their primary emphasis is on differentiation strategy for research and development.
A strategy used to accomplish a long-term or general goal "The skill of organising and controlling all military actions and movements in a conflict or battle" A strategy describes the long-term objectives of a company and how it intends to achieve them. In other words, it demonstrates the route to take in order to realise the stated goal. A tactic is a precise action that is used to accomplish a goal in accordance with a strategy. Development is a process that results in expansion, advancement, constructive change, or the addition of elements that are physical, economic, environmental, social, and demographic. All development must receive approval, however since each development has a varied level of influence, they are divided into 3 categories. Complying, Merit, and Non-Complying are the three categories of developments.
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When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called trade.
When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called free trade.
In the field of business, such a kind of trade in between two countries that require low or no taxes at all is referred to as free trade. Free trade is considered beneficial if the status of the market of a country is to be enhanced. Foreign companies will be more interested to sell products in a country where there are no quotas, taxes or other restrictions so that they can benefit to the maximum level from such a trade.
Free trade is a policy by the government of a country to allow import as well as export without any restrictions. The local businessman of a country benefits from such a kind of trade as they do not have to pay taxes.
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