Answer:
6.1%
Explanation:
As per my knowledge, real wages and the inflation rate goes hand to hand, so if the inflation rate is expected to increase to 6.1% in the coming year, then I thing the labor union would also want the real wages to go up by 6.1% for the labor union members to offset the difference between the two and meet the demands for the members.
Thank you and Good luck.
Answer:
$2,500,000
Explanation:
Data provided
Ending assets = $1,500,000
Inventory turnover = 6.0 times
Net sales = $8,000,000
The computation of beginning total asset balance is shown below:-
Average total assets = $8,000,000 ÷ 4
= $2,000,000
Total assets = $2,000,000 × 2
= $4,000,000
Beginning assets = Total assets - Ending assets
= $4,000,000 - 1,500,000
= $2,500,000
Therefore we applied the above formula
Answer: $3,000,000
Explanation:
From the question, we are informed that a company's capital budget is expected to be $5,000,000 and that the company's target capital structure is 70 percent debt and 30 percent equity.
Equity = 30% × $5,000,000
= 30/100 × $5,000,000
= 0.3 × $5,000,000
= $1,500,000
Debt = 70% × $5,000,000
= 70/100 × $5,000,000
= 0.7 × $5,000,000
= $3,500,000
We are further told that the company's net income is $4,500,000 and since we be calculated the equity that will be needed to finance the capital budget as $1,500,000. Therefore, portion of its net income should it pay out as dividends this year will be:
= $4,500,000 - $1,500,000
= $3,000,000