All categories

3 years ago

Economic models

Business

1 answer:

Fiesta28 [93]3 years ago

7 0

Answer:

Explanation:

A economic model can be used to explain or predict economic phenomena, because every model has to have key variables that command the economic decisions and operations.

An economic model is define to get a specific goal, so when some problem comes, you can study every decision based on the model applied, that 'simplifies' solutions, or even better, you must be able to predict when economic problems will arrive.

You might be interested in

GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi

AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

= 8.00 % x (1 - 0.35)

= 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

= 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0

3 years ago

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from o

Svet_ta [14]

Answer:

Imports

Explanation:

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that imports. Dominique imports products from different countries and make them available to its customers on their shelves. They have to buy those products from different sources. For this purpose, they have to put large amount of efforts in order to contact the foreign vendors and get their product imported in their country and ultimately at their store by spending costs and efforts. By importing products from other country, they can provide large product assortment to their customers.

5 0

4 years ago

Joe, a hard and productive worker, quit because he couldn’t get along with his coworkers. this would be diagnosed as a(n) ______

anastassius [24]

The answer to this question is: Group level problem
Group level problems refers to the problem that arised within different individuals in one social group.
The cause of this type of problems could range from leadership, emotional, ambition, Clashes between opinion, difference in job standards, etc.

8 0

4 years ago

In 2019, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. Wha

yan [13]

Answer:

Total tax ( Sheryl ) = $802

Explanation:

Tax status of Sheryl = Single

The rates to be used are

Tax rate = 10% for single taxpayers with income between $0 through $9700
Tax for income from estates that is between $2600 through $9300 will be $260 + 24% of excess over $2600

kiddie tax is applicable on earned income above $2200 ( defined by IRS )

attached below is a detailed table

7 0

3 years ago

A project has an initial cost of $10,600 and produces cash inflows of $3,700,$4,900,and $2,500 for Years 1 to 3,respectively.Wha

Tatiana [17]

Answer:

The project will never pay the initial investment.

Explanation:

<u>The payback period is the time required to cover the initial investment.</u>

We need to use the following formula on each cash flow:

PV= Cf/(1+i)^n

PV1= 3,700/1.075= 3,441.86

PV2= 4,900/1.075^2= 4,240.13

PV3= 2,500/1.075^3= 2,012.40

<u>Now, the payback period:</u>

Year 1= 3,441.86 - 10,600= -7,158.14

Year 2= 4,240.13 - 7,158.14= -2,918

Year 3= 2,010.4 - 2,918= -907.6

The project will never pay the initial investment.

4 0

3 years ago