<span>Assuming no other transaction happened during the year, the long term investments in the balance sheet will increase. The answer is letter A.This is because Joan already purchased 10,000 shares of Smith Metals Inc. for $34,000 in exchange for cash and at the same time, she holds 3.2% of the voting stock of Smith Metals Inc. Also, Joan's company, Steel Inc. wanted o hold the stocks for two years.</span>
<span>Sustainable Growth Rate is = ( 1- Dividend Payout Ratio ) X RoE
Now, We have to find out the RoE of the given problem.
Return on Equity (RoE) = (Net Profit Margin) X (Asset Turnover)
X(Equity Multiplier).
= (0.05) X (1.40) X (1.50)
=0.105 or 10.5%
Now Sustainable Growth Rate(SGR) = (1- .40) X 0.105
= .063 or 6.3%
So, According to the question SGR of Green Giant is = 6.3%</span>
The answer is D. Payday Loans
Both credit cards and payday loans have a high interest rates, but payday loans seems a little bit higher
Credit Cards interest Rates in U.S : 7 - 36 %
Payday Loans : 12 - 30 %
Answer:
B. $32.37
Explanation:
The computation of the maximum price for paying the share today is shown below:
Let us assume the buying price be x
Now we applying the following formula
Return = (sale price - buy price + dividend) ÷ (buy price)
12% = ($35 - x + $1.25) ÷ x
0.12 = $36.25 - x
1.12x = $36.25
x = $36.25 ÷ 1.12
= $32.37
Hence, the correct option is B.
Answer:
c. marginal benefit is less than the marginal cost of the good.
Explanation:
Allocation of resources is important in every nation or society because, human wants are unlimited whereas the resources meant to satisfy these wants are in short supply. Therefore, only the most important needs are satisfied before the less important needs. Marginal benefit is the maximum sum of money that consumers are willing to pay for an additional good or service. Marginal cost is the difference in cost when a new or additional unit of goods is produced.
Nations would allocate less to the production of a good when the maximum price consumers are willing to pay for an added unit of that good becomes less than changes in cost when a unit of that good is produced. Marginal benefit reduces when consumption of the good has increased to a reasonable extent. The consumers then lose interest in paying more for that good.
