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3 years ago

When the Fed decreases the money supply, we expect

Business

1 answer:

tester [92]3 years ago

6 0

Answer:

b. interest rates to rise and stock prices to fall.

Explanation:

Interest rates are the prices of money (the cost to borrow money for use) so when money is scarce (decreased money supply) rates will rise.

When interest rates rise, people will cut down on spending and investment causing corporate earnings to decrease, causing the price of stocks to decrease.

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Copybold Corporation is a start-up company that has a capital structure with a debt/assets ratio equal to 0.75. Copybold has no

galben [10]

Answer:

The value of the difference between the earnings per share (EPS) forecasts for Feast and Famine is $2.40

Explanation:

The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.

For the data values from the question are used.

8 0

2 years ago

A convenience store buys 1-gallon jugs of milk for $2.99 and sells them for $4.29. What is the margin they earn on the milk?

koban [17]

Answer:

1.30

Explanation:

subtract 4.29 from 2.99

5 0

3 years ago

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base

iragen [17]

Answer: c. machine hours.

Explanation:

In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.

It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.

7 0

3 years ago

On September 11, 2016, Home Store sells a mower for $450 with a one-year warranty that covers parts. Warranty expense is estimat

xeze [42]

Answer:

Date Accounts Titles and Explanations Debit Credit

Sept, 11 Cash $450

2016 Sales $450

(To record the Cash Sales)

Sept, 11 Warranty Expenses $40.50

2016 ($450 x 9%)

Estimated Warranty Payable $40.50

(To record the Warranty Expenses)

July, 24 Estimated Warranty Payable $32

2017 Repairs Parts Inventory $32

(To record the material taken from Inventory)

6 0

3 years ago

a. She has negotiated a sales price of $46,585 and she has a $15,000 down payment. She is eligible for the full $10,000 cash reb

nirvana33 [79]

Answer: Elaine should take Dealership's financing option.

Explanation:

Option A

Car Sale Price = $46 585

Down Payment = $15000

Interest rate = 0%

Period = 66 months

Value of Dealer Financing = $46585 - $15000 = $31585

Option 2.

Elaine takes the loan to pay for the car

R = 3.24%

Car price = Loan Amount = $46585

Period (n) = 72 months

Value of Option 2 Loan Financing = Loan Amount (1 + r)^n

Value of Option 2 Loan Financing = $46585(1 + 0.0324^/12)^72

Value of Option 2 Loan Financing = $46585(1 + 0.0027)^72

Value of Option 2 Loan Financing = 56566.482756

Value of Option 2 Loan Financing = $56566.48

Elaine receives a Cash rebate of $10 000

Overall Value of option 2 = $56566.48 - $10 000 = $46566.48

Let us assume Elaine Pays the Down Payment of $15000 AND take A Loan to finance the rest of the Car amount

Car sale price = $46585 - $15000 = $31585

Loan Amount = $31585

Option 2 Loan Financing with down Payment

Option 2 Loan Financing = $31585(1 + 0.0324^/12)^72 + $15000

Option 2 Loan Financing = $31585(1+0.0027)^72 + $15000

Option 2 Loan Financing = 38352.524586 + $15000

Option 2 Loan Financing = $53352.524586

Elaine Receives a Cash Rebate of $10 000

Value of Option 2 with down payment = $53352.524586 - 10 000

Value of Option 2 with down payment = $43352.524586

Value of Option 2 with down payment = $43352.53

When Elaine pays a down payment and takes a loan of $31585, the overall finance is valued at $43352.53, When Elaine takes a loan for the entire car amount the Value of option 2 finance is $46566.48.

Dealership Option Financing Value is $31585. Elaine should take Dealership's financing option

3 0

2 years ago