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wariber [46]
2 years ago
5

Which of the following is a reason the government can’t completely control the business cycle

Business
1 answer:
saveliy_v [14]2 years ago
6 0

The basic reason is the government can’t control interest rates is the business cycle. Changes in interest rates should be reflected in the business cycle.

What is business cycle?

The term "business cycle" is used by economists to describe the increase and decrease in economic activity over time.

The interest rate cycle is closely related to the business, trade, and economic cycles. Theoretically, changes in interest rates should be reflected in the economic cycle. But the government can’t completely control interest rates.

Governments attempt to control business cycles through spending, tax increases or decreases, and interest rate changes. In order to stifle inflation and slow down the economy, the government will raise interest rates.

As a result, option (b) the government can't control interest rates is correct.

Learn more about on business cycle, here:

brainly.com/question/4511868

#SPJ1

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The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
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Answer:

a)  

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

for the current price n = 1

thus,

Current price = \frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}

=  $34.4

b) Price in 3 years

i.e n = 3

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}

=

$37.20

c) Price in 15 years

i.e n = 15

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}

=  $59.57

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Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows:
Oksanka [162]

Answer:

The correct answer is:

$19,000 decrease (a)

Explanation:

To calculate this, we have to calculate the total cost involved, when the product was manufactured and when it was purchased and calculate the difference in cost.

Note also that when calculating cost for manufacturing, you do not add fixed overhead costs because they are not costs associated with the direct manufacture of a product, rather, they are costs associated with the day to day running of the business, example here may be the electricity used in the factory.

Total manufacturing cost ($);

Direct materials =           150,000

Direct labor        =           170,000  

variable overhead =         70,000

Total                   =           $390,000

Total purchase cost ($)

1 component = $14

∴ 30,000 components = 30,000 × 14 = 420,000

if the facilities are rented out for $11,000, Damon could use the money for the purchase too, therefore effective cost for purchase;

= 420,000 - 11, 0000 = $409,000.

Now finding the difference between the two costs;

cost of purchase       = $ 409,000

Cost of manufacture = $ 390,000

difference                  = $19,000

since the cost of purchase of the components is more than the cost of manufacturing by $19,000, it means that the operating profits will reduce by  $19,000 if Damon chooses to purchase the components

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