<u>Answer:</u>
<em>True.
</em>
<em></em>
<u>Explanation:</u>
The nominal GDP is the estimation of all the last products and enterprises that an economy created during a given year. It is arrived by utilizing the costs that are at present in the year in which the yield is delivered. In financial matters, an ostensible worth is communicated in money-related terms. For instance, a notable quality can change because of movements in amount and cost.
The real GDP is the all-out estimation of the entirety of the last products and ventures that an economy produces during a given year, representing inflation.
Answer: $40,500
Explanation:
The company would be expected to make a net income of 13.5% of the amount invested in assets.
ROE = Net income / Equity
Net income = ROE * Equity
Assets are the same as equity in this scenario because the company is entirely funded by equity.
= 13.5% * 300,000
= $40,500
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Answer:
Debit $ 800,000 to the Asset Account.
Explanation:
With the help of successful efforts process we will find the solution of the given problem .The successful efforts process stated that,if the company are upgrading only those expenses or the cost that are involved with the discovery of oil and the gas then reserves are identified.
- The successful efforts process stated that when the cost of exploration is achieved then the cost of the exploration is capitalized .
- So the sulfur reserves were identified therefore $800,000 in exploration expenses would be debited to the Asset Account.
Answer:
Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.
Lluvia should choose funding in floating rate
Explanation:
Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%
Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.