Answer:
Microeconomics
A firm's decision on which production method to use.
The effect of rent control on the housing market.
The effect of externality on the quantity produced by the market.
A student's decision about how to allocate hi
Macroeconomics
The effect of an increase in income tax on national income.
Answer:
the bond's real return for the year is 6.18 %.
Explanation:
First find the nominal return of the bond then the real return as follows :
PV = - $946.02
Pmt = $1,000 × 5.10% = $51
P/yr = 1
FV = $979.58
n = 1
r = ?
Using a Financial Calculator, the nominal return of the bond, r is 8.9385 %.
Real Return = ( 1 + nominal return) / (1 + inflation rate) -1
= (1 + 0.089395) / (1 + 0.026) - 1
= 0.0618 or 6.18 %
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-109,332
Cash flow each year from year 1 to 4 = $36,000
IRR = 12%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
The answer is E. The process takes longer
Explanation:
External recruitment is the process of announcing vacancies to the people outside ones organization while Internal recruitment is the process of announcing vacancies for the internal staffs only.
The process of external recruitment is usually longer and more expensive than internal recruitment. For example, payment to publish the vacancies in any national newspapers or payment for outsourcing company that specializes in recruitment.
Option A is wrong because external recruitment discourages employee loyalty.
Option B in incorrect because this is so for internal recruitment
Answer:
B. $300,000
Explanation:
Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend
