Answer:
Consider the following explanation
Explanation:
1. Option C.
Structural unemployment is a type of unemployment which occurs naturally when the economy shifts in time.
This forces certain job skills to become obsolete, due to which mismatch of skills and the jobs available in the economy.
Many workers are also laid off as their jobs no longer match their current skills.
2. Option D.
A laffer curve is a curve which shows a relationship between the taxes imposed within an economy and the tax revenues collected from the imposed taxes.
Above the optimal tax rate, a reduction in tax rates along the downward sloping portion of the laffer curve would increase the tax revenue's.
Answer:
$36 per purchase order; $20 per square foot
Explanation:
Factory expected cost:
= Cleaning factory + Providing utilities
= $35,000 + $77,000
= $112,000
Purchasing:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $ 183,600 ÷ 5,100
= $36 per purchase order
Factory:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $112,000 ÷ 5,600
= $20 per square foot
The maximum possible change in the money supply is $250 million.
The change in required reserves when an amount of money is deposited in a bank is determined by the reserve requirement.
Reserve requirement = increase in required reserves / amount deposited
$10 million / $50 million = 0.20 = 20%
The change in money supply can be determined using this formula:
Amount deposited / reserve requirement
$50 million / 20%
$50 million / 0.2 = $250 million
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Answer: 9.48%
Explanation:
Given Data
Debts ;
$7 billion
$2 billion
$13 billion
Beta of Fords stock = Beta = 1.50
Market risk premium = Rp = 8.0%
Risk free rate of interest = Rf = 4.0%
Equity rate = 1.7
Market risk rate = 0.8
Risk free rate = 0.03
Therefore;
Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium
= 0.03 + (1.7 × 0.8)
= 0.166
Preferred Stock Cost ( PSC)= Dividend ÷ stock price
= 4 ÷ 30
= 0.1333
Total debt = 13 + 6 + 2 = 21 billion
D% = 13 billion ÷ 21 billion
= 0.619
E% = 6 billion ÷ 21 billion
= 0.286
P% = 2 billion ÷ 21 billion
= 0.095
RD = debt capital at 8% maturity rate
Tc= 30%
Rwac =(w/ preferred stock)
= Re × E% + PSC × P% + Rd ( 1- Tc) D%
Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)
= 0.094803 * 100
= 9.48%
At 30% tax rate Ford weighted average cost is 9.48%
Answer:
Arithmetic Growth rate is about 19.89%
Geometric Growth rate is about 23.44%
Explanation:
Dividend Arithmetic Growth rate is calculated as follows
Step 1:
Find the growth rate of each year
Step 2:
Take its sum
Step 3:
Make an average by dividing the sum of all growths by Number of years in growth.
Dividend Arithmetic Growth rate is calculated as follows
Step 1:
Find the growth rate of each year
Step 2:
Take sum of all positive growth rates because geometric mean does not include the negative values.
Step 3: Multiply every growth and take the square root of the resultant product of these growths.
A MS Excel File is attached for the working. please find it.
