Answer:
d. an increase in the quantity of bicycles demanded.
Explanation:
For this question, the law of demand applies.
According to the law of demand, when the price of the good increases the quantity demanded of that good would be decreased keeping other things constant and when the price of the good decreases the quantity demanded of that good would be increased keeping other things constant.
It reflects the inverse relationship between the price and the quantity demanded of the good.
Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is <u>higher than the market rate of interest.</u>
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
Answer:
Alternation ranking method.
Explanation:
Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Paula's name as the best-performing employee of the group. He then circles Erma's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Tony is using the alternation ranking method.
This method basically ranks employees from the very best to the worst based on a particular trait. Choosing the highest down to the lowest until every one of them are ranked.
When consumption increases, factories produce more, consequently having to expand, when they expand they hire new employees, meaning that more people have money to buy more things and boost the market.
It is almost like the balance of an ecosystem, if everything works well, the tendency is to continue improving
