Answer:
3. $2,123,612
Explanation:
As we know that
Net working capital = Current assets - current liabilities
where,
Current assets = Cash and marketable securities + inventory + accounts receivables + other current assets
= $335,485 + $1,651,599 + $1,488,121 + $121,427
= $3,596,632
Current liabilities = Accounts payable + short-term notes payable
= $1,159,357 + $313,663
= $1,473,020
So, the net working capital is $2,123,612
Answer:
2,256 hours
Explanation:
The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;
As we know that
Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)
($5,000) = $35,000 - (2,500 × Standard rate)
2,500 × Standard rate = $40,000
Standard rate = $16
Now
Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
$3,900 = (2,500 × $16) - (Standard hours × $16)
Standard hours × $16 = 36,100
Standard hours = 2,256.25
= 2,256 hours
Answer:
The answer is:
1. consumers' expenditure increases by $150 billion
2. output will decrease by $600 billion
Explanation:
Tax impact:
$300 billion x 0.5
= $150 billion.
If taxes are lowered by $300 billion, consumers' expenditure increases by $150 billion because with lower tax, there is money money to be spent because their disposable income has increased.
Government spending impact:
$300/(1-0.5)
$300/0.5
=$600 billion.
Due to government spending that has increased by this amount, output will decrease by this amount too because government has directly competed with firms that should have used this money to increase the total output.
Therefore, net effect on total output is $300billion($600 - $300)
Answer:
P0 = $137.2988907 rounded off to $137.30
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
- g1 is the initial growth rate
- g2 is the constant growth rate
- D0 is the dividend paid today or most recently
- r is the required rate of return
P0 = 2 * (1+0.15) / (1+0.07) + 2 * (1+0.15)^2 / (1+0.07)^2 +
2 * (1+0.15)^3 / (1+0.07)^3 +
[(2 * (1+0.15)^3 * (1+0.05) / (0.07 - 0.05)) / (1+0.07)^3]
P0 = $137.2988907 rounded off to $137.30
