An increase in the quantity demanded means that:

After graduation many students' demand for used cars decreases. This may be because used cars are considered a normal good to co

Blababa [14]

Answer:

The statement is: False.

Explanation:

Normal goods are those with increasing demand as a result of increases in consumer wages. Examples of normal goods are food staples or clothing. On the other hand, inferior goods are those with decreasing demand when people's income rise. Bus travels and corned beef are examples of inferior goods.

Thus, <em>used cars are considered inferior goods to college students since after graduation, when they start working and earning an income, they are likely to stop purchasing used cars to buy brand new vehicles.</em>

3 0

4 years ago

The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summ

marishachu [46]

Answer and Explanation:

The computation is shown below:-

Incorrect

ROA = Net Income ÷ Average assets

= $101,900 ÷ (($550,000 + $573,000) ÷ 2)

= $101,900 ÷ $561,500

= 0.18

ROE = Net Income ÷ Average equity

= $101,900 ÷ (($340,000 + 356,000) ÷ 2)

= $101,900 ÷ $348,000

= 0.29

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000) ÷ 2)

= $217,000 ÷ $561,500

= 0.39

EPS = Net Income ÷ Number of Common Shares

= $101,900 ÷ 22,000

= $4.63

Correct

ROA = Net Income ÷ Average assets

= ($101,900 - $8,500) ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $93,400 ÷ $557,250

= 0.17

ROE = Net Income ÷ Average equity

= ($101,900 - $8,500) ÷ (($340,000 + 356,000 - $8,500) ÷ 2)

= $93,400 ÷ $343,750

= 0.27

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $217,000 ÷ $276,500

= 0.78

EPS = Net Income ÷ Number of Common Shares

= ($101,900 - $8,500) ÷ 22,000

= $4.25

5 0

3 years ago

You have risen through the ranks of a coffee comany, from the lowly green-apron barista to the coveted black apron, and all t

NISA [10]

Answer:

The cost of equity capital or expected rate of return is 7.22%

Explanation:

The expected rate of return or the required rate of return is the minimum rate of return required by the investors to invest in a stock or a portfolio of stock based on the systematic risk that a stock carries as represented by a stock's beta. The expected rate of return (r) of a stock can be calculated using the CAPM equation.

The CAPM equation is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate
rpM is the risk premium on market

r = 0.041 + 0.6 * 0.052

r = 0.0722 or 7.22%

7 0

3 years ago

The fee that mutual funds use to help pay for advertising and promotional literature is called a __________.

fiasKO [112]

d. 12b-1 fee

Hope this helps :)

6 0

2 years ago

Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investme

AnnZ [28]

Answer:

Answer for the question is given below.

Explanation:

Observing the present worth of all projects , it can be seen that the present worth of project B is highest and that of project E is lowest. Project A is discarded since its present worth is negative. Now if there is no limit on the initial investment, then it can be increased to any limit for any project. Hence all the for projects are at equal stake.

4 0

4 years ago