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Nata [24]
2 years ago
15

It is often said that high rates of inflation tend to diminish people's incentive to save and invest. this view must be incorrec

t, however, because people generally saved and invested more of their income in the 1970's when inflation rates were high than they did in the 1980's when inflation rates were low.
Business
1 answer:
SOVA2 [1]2 years ago
5 0
Of the following, the best criticism of the argument above is that it overlooks the possibility that certain factors operating in the 1980’s but not in the 1970’s diminished people’s incentive to save and invest.
<span>If these other factors, unrelated to the inflation rate, that operated in the 1980’s but not the 1970’s, created an even greater disincentive to savings and investment than high inflation rates provide, then those trends do not provide evidence about the general relationship among savings, investment, and inflation. </span>
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Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred
masya89 [10]

Answer:

The answer is given below;

Explanation:

 Preference stocks  950*50    Dr.$47,500

 Paid in capital in excess of par-preference shares  Dr.$  13,300                                  

 (64-50)*950

  Common Stocks  1,900*10        Cr.$19,000

  Paid in capital in excess of par-common stocks    Cr.$41,800

   (64*950)-(1900*10)                                        

8 0
2 years ago
An entity has decided to focus strictly on producing and selling one type of teddy bear. For the upcoming year, the entity hopes
Yuki888 [10]

Answer:

29,143

Explanation:

Profit target = 25% on sales

Fixed cost = $51,000

Variable cost = $9.50 per unit

Sales price per unit = $15

To achieve profit target, let the number of units sold be y

Total sales = 15y

Total variable cost = 9.5y

Profit = 0.25 × 15y

         = 3.75y

Sales - Cost = profit

15y - (51000 + 9.5y) = 3.75y

15y - 9.5y - 3.75y = 51000

1.75y = 51000

y = 51000/1.75

y = 29143

29,143 bears must be sold to meet the profit goal.

8 0
3 years ago
A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv
Xelga [282]

Answer:

d. 16% - buy

Explanation:

R = (D1 / P0) + g

Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11

Expected Return = R = ($2/$40) + 11%

R = 0.05 + 0.11

R = 0.16

R = 16%

Expected Return is higher than the required return of 12%.  Hence, it should be bought (it is expected to give higher return than required)

7 0
2 years ago
In an attempt to increase sales during a lagging economy, Macy's has increased its advertising and sales promotions for its curr
Mashutka [201]

Answer:

I don't know this assignment but ask your teacher or get tutor.

4 0
3 years ago
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 790,000 units are expecte
Mazyrski [523]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

790,000 units are expected to be produced taking 0.75 machine hours each.

<u>We weren't provided with enough information to solve the requirement. But, I will give the formulas necessary to guide an answer and a small example.</u>

<u>First, we need to calculate the total amount of machine-hours required:</u>

Total machine hours= 790,000*0.75= 592,500 hours.

Let us suppose that the estimated manufacturing overhead is $850,000.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 850,000/592,500= $1.44 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.44*0.75 hours= $1.08 per unit

5 0
3 years ago
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