Answer:
False
Explanation:
When a country is in a liquidity trap , monetary policy both contractionary and expansionary would have an effect on interest rate
Answer:
Option B- $63510 is the correct option.
Explanation:
Remember that:
Net Working Capital = Current Assets - Current Liabilities
Current assets includes receivables, cash and inventory, and current liabilities include accounts payable, short term notes payable and accrued taxes.
Putting value of current assets and current liabilities, we have:
Net Working Capital = ($47,199+$63,781+$21,461) - ($51,369+$11,417+$6145)
Net Working Capital = $132,441 - $68931 = $63,510
So the option B is the correct option.
Answer:
ARR=15.82%
Explanation:
Joe's Hardware
Cash flow 1,540,000
Average Cash flow =305,000+265,000+(6×230,000)/8
Average Cash flow =305,000+265,000+1,380,000/8
=1,950,000/8
=243,750
ARR= Average Annual Operating Income/ Initial investment
=243,750/1,540,000
ARR=15.82%
Answer:
what is the the price of a share of IBM's stock?
Price of a share of IBM's stock = $8.90 per share
Explanation:
<u>Calculation of the price of a share of IBM's stock</u>
<em>Price of a share of IBM's stock = Sum of Present values of all future dividends discounted at cost of capital i.e.12%</em>
<u>Working</u>
Per Year Dividend from 3rd Year on-wards = Earnings per share x (1 - retention %) = $2.5 x (1 - 0.40) = $1.50
Value of perpetual dividend = Dividend payable / equity cost of capital = $1.5 / 12% = $12.50
Calculations are attached:
Answer:
The plot is attached.
a) <u>
Linearity Condition:</u>
an upward pattern is seen in the dissipate plot. All the focuses are plotted near one another demonstrating that the relationship is solid. Henceforth I can say that there is a solid positive straight connection among spending plan and gross. As the estimation of spending builds, the estimation of gross likewise increments.
Truly, the plot is sensibly honest without any Bends.
b) <u>Equal Spread Condition:</u>
to check the suspicion of equivalent spread condition, a lingering plot is required. A remaining plot is plotted with the free factor on the x-pivot and the lingering esteems on the y-hub. In the event that the remaining plot has arbitrary focuses, I can say that the difference is consistent. As such, a leftover plot with irregular focuses is said to follow the presumption of fairness of difference.
For this situation, the leftover plot isn't appeared, consequently there is inadequate data to check the equivalent spread condition.
c) <u>
Normality Condition:</u>
Another presumption of relapse examination is the suspicion of ordinariness of residuals. This presumption can be checked with the assistance of PP plot. A PP plot with S shape shows that the suspicion of ordinariness of residuals is followed.
For this situation, there is inadequate data to check the typicality presumption in light of the fact that the PP plot isn't given.