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Annette [7]
2 years ago
7

Use a well labelled graph to explain why the introduction of maximum prices in the petrol industry will not be an ideal decision

for the country's economy. (8)​
Business
1 answer:
-Dominant- [34]2 years ago
5 0

A country's economy will go on a decline if there is a hyperinflation in the petrol prices.

<h3>What is hyperinflation?</h3>

Extreme increase in prices in a very short span of time is regarded as the condition of hyperinflation. If there is hyperinflation in the petrol prices, its demand will be lowered and people will look for substitutes.

Thus, increase or hyperinflation in the petrol prices will lead to declining of a country's economy and will not serve as a wise decision.

Learn more about hyperinflation here:

brainly.com/question/22313119

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American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

WACC 9.00000%

c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
Cross Company reported the following results for the year ended December 31, 2018, its first year of operations: 2018 Income (pe
Jlenok [28]

Answer:

$420,000 deferred tax asset

Explanation:

Deferred-tax assets are asset that occurred when company's or organization record income tax is less than the one which is been paid to the tax authority.

Taxable income 3,200,000

Less;Income (per books before income taxes) $2,000,000

Total $1,200,000

Therefore

$1,200,000×35%

=$420,000 deferred tax asset.

Cross record should record $420,000 as a net deferred tax asset or liability for the year ended December 31, 2018

4 0
4 years ago
Karissa works for a company that sells sour cream. Sales are down, so she begins a research project. First, she develops a hypot
lubasha [3.4K]

The next step for Karissa is to collect data.

<h3>What are the steps involved in a research project?</h3>

Locating and defining issues or problems is the first step:

The goal of this stage is to define the parameters of a situation or subject that needs to be resolved or researched. The researcher should consider the study's objectives, pertinent prior knowledge, the information that is required, and how the information will be used in decision-making when describing the issues or problems.

Creating the research project is step two:

This step focuses on developing a research strategy or overarching approach to how you will address the stated issue or problem. A framework or blueprint for carrying out a research undertaking is a research strategy or approach. It describes the steps required to get the needed data, and its goal is to create a study that will test the relevant hypotheses, find potential solutions to the research problems, and offer the data required for making decisions.

Data Collection is the third step:

This step focused on gathering the data you'll need to address the issue or problem you identified. Experiments, observations, human interviews, telephone or computer-assisted telephone interviews from an office, and postal surveys are all possible methods for gathering data.

Analyzing Research Data is the fourth step:

In this step, the research findings will be interpreted, examined, and analyzed in order to reach a conclusion that resolves the problem. Make sure the conclusion is clear and well-thought-out in light of the information gathered.

Present Your Research Results is step five:

Reporting the research results to individuals who require the information to make decisions is the last stage. The findings ought to be presented in an understandable way so that decision-makers can quickly utilize them. In order to increase impact and clarity, a spoken presentation to management should also include tables, figures, and graphs.

Learn more about research project here:

brainly.com/question/14448144

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6 0
2 years ago
Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cos
OLga [1]

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is= $4.3

Rework cost= $2.8

Selling price= $12.9

<u>Because the original cost will remain constant in both options, we will not take them into account.</u>

Sell as-is:

Effect on income= 1,000*4.3= $4,300

Rework:

Effect on income= 1,000*(12.9 - 2.8)

Effect on income= $10,100

If the units are reworked, income will increase by $5,800.

4 0
3 years ago
Tom is the beneficiary and is concerned about both running out of money during his lifetime and at the same time leaving funds b
fredd [130]

Answer:

lifetime annuity with period certain settlement option

Explanation:

Based on the specifications that Tom is looking for, he should consider the lifetime annuity with period certain settlement option. This is an annuity that pays a benefit to the annuitant until death, but with a period certain option, the estate's beneficiary will continue to receive annuity payments until the specified timeframe of the period certain expires. Which would meet the requirements that Tom is looking for.

4 0
3 years ago
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