Answer: the full-employment budget has a deficit
Explanation:
When current government expenditures exceed current tax revenues and the economy is achieving full employment, it means that the full-employment budget has a deficit.
This means that the government of that particular economy is spending more than what it generates. This lead to the deficit that has been incurred.
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer:
c. An account that pays 0.5 %0.5% per month for three years.
Explanation:
We can evaluate all the option using following formula:
EAR = ( 1 + ( r / m ) )^m -1
a.
2.5% every six months for three years
r= 2.5% = 0.025 / 6 =
m = 12/6 = 2
EAR = ( 1 + 0.025 )^2 -1
EAR = 0.050625 = 5.06%
7.5% every 18 months for three years
r= 7.5% for 1.5 years = 7.5% / 18 = 0.4167% per month = 0.004167 per month
EAR = ( 1 + 0.004167 )^12 -1
EAR = 0.051166 = 5.12%
0.5% every month for three years
r= 0.5% = 0.005
EAR = ( 1 + 0.005 )^12 -1
EAR = 0.0616778 = 6.17%
We will prefer an account that pays 0.5 %0.5% per month for three years, it pays the highest return.
Answer:
November 2011
Explanation:
Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.
Answer:
what the company wants to become, and its long-term direction and strategic intent
Explanation:
Vision statement is a long term road map of the direction a business needs to take in order to achieve its set goals and objectives. It usually undergoes little revision.
However the short term operational processes are constantly reviewed to make the business better align with long term goals as stated in the vision statement.
In this scenario where the vision statement of small businesses are being formulated the speakers will discuss what the company wants to become, and its long-term direction and strategic intent
