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3 years ago

A method often used by economists to look at distribution of income in a society's economy involves:__________

Business

1 answer:

goblinko [34]3 years ago

3 0

Answer:

Quintiles, or dividing a whole group into fifths

Explanation:

Income can be described as the amount of money gotten from the sale of a particular good or service. In a country with a large population, it is necessary that the income generated in the country be distributed among the population.

This distribution is important for the development of a country as it helps to reduce the poverty rate.

Income distribution can be defined as the process in which a country gross domestic product is shared among the population. GDP is the amount of money acquired by a country after the sale of goods and services.

Quintiles method is carried out by categorizing all households according to the amount of income that is earned. This classification is done by grouping them from the lowest amount of income to the highest amount. These households are then divided into five groups with each of them having equal number of persons.

Hence economists make use of the quintiles method or dividing a whole group into fifths because it is very effective in income distribution.

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3 years ago

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2 years ago

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3 years ago

Read 2 more answers

Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of

Katarina [22]

Answer:

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07%

Explanation:

WACC=Ke*E/V+Kp*P/V*Kd*D/V*(1-t)

WACC when additional funds is raised from retained earnings:

Ke is the cost of equity is 14.7%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=14.7%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(14.7%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=11.73%

WACC when additional funds is raised from common equity capital

Ke is the cost of equity is 16.8%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=16.8%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(16.8%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=12.80%

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07% (12.80%-11.73%)

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4 years ago

How should office workers prevent workplace hazards?

vredina [299]

Use ergonomically designed equipment for work

Answer:C

I think this is the answer

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3 years ago