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Crazy boy [7]
3 years ago
8

Suppose two successive levels of disposable personal income increases from $16 to $21 billion and the change in consumption spen

ding between these two levels of disposable personal income is $2 billion, then the MPC will equal _____.
Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer: 0.4

Explanation: MPC, that is, marginal propensity to consume is used to quantify the consumption induced. As we know that, MPC is calculated as follows :-

MPC\:=\:\frac{Chane\:in\:consumer\:spending}{change\:in\:income}

MPC\:=\:\frac{2}{21-16}

MPC\:=\:\frac{2}{5}

                 = 0.4

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Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recen
jarptica [38.1K]

Answer:

The correct answer is "$28.03".

Explanation:

The given values are:

Good purchase,

= $25

Dividend,

= $1.40

Annually earning,

= 5%

Beta coefficient,

= 1.3

Treasury bills,

= 1.4%

Now,

= 1.4+1.34\times 8-1.4

= 1.34\times 8

= 10.244 (%)

hence,

The fair value will be:

= 1.4\times \frac{1.05}{.10244}-.05

= 28.03

Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.

5 0
3 years ago
The fifth step of the financial planning process is to create and implement the financial action plan. What is involved in this
alexgriva [62]

Answer:

Developing an action plan that identifies ways to achieve your financial goals.

7 0
2 years ago
Yoshino, Inc., a merchandising company, has the following budgeted figures:
erik [133]

Answer:

B

Explanation:

It is said that the required ending inventory for the month is $15000 and 20% of the next month's sales.

We are considering the month of march here, therefore the ending merchandise inventory is $15000- and 20% of April's sales.

Given:

April's sales = $91,000

Hence, 20% of April's sales = 0.2*91000 = $18200

Hence, ending merchandise inventory for March = 15000 + 18200 = $33,200

5 0
3 years ago
f the cross-price elasticity of food and clothing (% change in demand for clothing / % change in the price of food) is -0.7, the
Ber [7]

Answer:

Option "D" is correct.

Explanation:

Given the cross-price elasticity = -0.7

The rise in price of a commodity will decrease the consumption of the same commodity but it will increase the consumption of its substitute commodity. When the price rises for food then the nominal income falls, resulting in the fall in demand for food. Since income elasticity considers the change in actual income. Thus option D is correct.

6 0
3 years ago
At XYZ Corp., the master schedule reflects the fact that 50 percent of its output is product version A, 30 percent is version B,
Makovka662 [10]

Answer:

The weekly production for version A be 100 units

Explanation:

According to the given data we have the following:

The Total aggregate forecast for the year=10,400 units

Number of weeks per year=52 weeks

The weekly production=Total aggregate forecast for the year/ numer of weeks

The weekly production=104,00/52=200 units

Therefore, the weekly production for version A=50%of 200 units

The weekly production for version A=100 units

The weekly production for version A be 100 units

6 0
3 years ago
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