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1 year ago

When individuals use all available information about an economic variable to make a decision, expectations are?

1 answer:

7 0

when individuals use all available information about an economic variable to make a decision, expectations are -rational

What is economic variable?

An economic variable is any measurement that helps to consider how an economy may function . for instance population, poverty rate, inflation, and available resources.

What are the five economic variables?

There are 5 common economic variable that are considered :

output, gross domestic product ( GDP ), production, income, and expenditures.

What factors cause economic growth?

Basically , there are two main cause of economic growth: growth in the size of the workforce and growth in the production activity (output per hour worked) of that workforce.

Learn more about economic variable:

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Read more about aggregate demand

brainly.com/question/1490249

7 0

2 years ago

What is insider trading?

siniylev [52]

the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

5 0

3 years ago

A corporation entered into a contract with an owner of land for the transfer of land at a price of $500,000 in sixty days. The c

Zielflug [23.3K]

Answer:

Yes, because the corporation remains liable to the owner under the contract

Explanation:

The above answer is true because in this case, there is no limit to the assignment of the contractual rights between the two parties, hence this assignment of a contract would be treated as both an assignment of rights and a delegation of duties.

Therefore, while the corporation in this case has delegated its duties and assigned its rights under the contract to the developer by assigning the contract to the developer, the corporation is still considered to be liable to the owner for payment of the purchase price.

And given the fact that the developer is not as creditworthy as the corporation, and thus there is a greater chance that the developer will be unable to pay the purchase price, the owner has the rights under the contract arrangement to contractually compel the corporation to do so.

4 0

2 years ago

The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coup

ch4aika [34]

Answer:

d. $750,000; 8.9%

Explanation:

The computation is shown below:

A. Current Total Market Value

Current market value of debt $150,000 The Current market value of equity $600,000 (10,000 shares × $60) Market Value $750,000

B. Weighted Average Cost of Capital (WACC) WACC = {Equity ÷ (Equity + Debt) × Cost of Equity} + {Debt ÷ ( Equity + Debt ) × Cost of Debt × (1 - 25%)}

= {$600,000 ÷ ($600,000 + $150,000) × 10%} + {$150,000 ÷ ($600,000 + $150,000) × 6% × 0.75}

= ($600,000 ÷ $750,000) × 10% + ($150,000 ÷ $750,000) × 6% × 0.75 = 0.08 + 0.009

= 8.90%

Hence, the correct option is D. $7,50,000 ; 8.90%

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3 years ago

Mullineaux Corporation has a target capital structure of 65 percent common stock and 35 percent debt. Its cost of equity is 12.8

Zepler [3.9K]

Answer:

WACC = 10.35%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion that each source of finance bears to the total capital in the pool..

After-tax cost of debt = (1- tax rate) × before tax cost of debt

= (1-0.23)× 7.5% = 5.8%

Type Cost (%) Weight cost × weight

Equity 12.8 65% 8.32

Debt 5.8 35% 2.03

Total 10.3

WACC = 10.35%

8 0

3 years ago