Answer:
B.)The credit rating data and the balance sheet data for each company on p. 5 of the FIR
Explanation:
Answer:
D. The change in real GDP cannot be determined without more information.
Explanation:
GDP is the total value (P X Q) of final goods & services produced in an economy during a period of time.
Real GDP is measured at constant base year price level, such that it reflects change only due to quantity & not price rise (inflation).
Nominal GDP is measured at current year price level, it reflects change due to both quantity & price rise (inflation).
Nominal GDP / Real GDP = GDP Deflator. It measures the average price level change in current period relative to base period, helps eliminating price change effect & converting Nominal GDP into Real GDP .
Cannedada: 2018 Nominal GDP = $4 Billion, 2019 Nominal GDP = $5 Billion
Nominal GDP has increased between 2008 & 2009. Production rise between 2008, 2009 cant be found without 2009 Real GDP. Average price level rise between 2008 & 2009 cant be found without 2009 Real GDP (through GDP deflator).
Answer:
(B) Increase both assets and equity by $180
Explanation:
The transaction analysis model tells us that:
Assets = Liabilities + Owner's Equity
Owner's equity = Contributed Capital + Retained Earnings
Retained Earnings = Net Income − Dividends
and
Net Income = Income − Expenses
The expanded accounting equation is obtain if all substitutions are made:
Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends
In the Global Cleaning Service`s case:
Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.
Answer and Explanation:
The computation is shown below:
Last years Dividend, D0 = $2.48
Growth Rate, g = 7%
Required Return, r = 12%
Now
D1 = D0 × (1 + g)
= $2.48 × 1.07
= $2.6536
Now
1 The Current Price is
P0 = D1 ÷ (r - g)
= $2.6536 ÷ (12% - 7%)
= $53.072
2. For the stock price in 5 years is
P5 = P0 × (1 + g)^5
= $53.072 × 1.07^5
= $74.436
3. For the stock price in 20 years is
P20 = P0 × (1 + g)^520
= $53.072 × 1.07^20
= $205.37
Answer:
Core rigidity
Explanation:
According to a different source, these are the options that come with this question:
- resource flow.
- dynamic capabilities.
- core rigidity.
- value chain.
This is an example of core rigidity. Core rigidity refers to a situation that can arise in business in which a company relies on its advantages for too long. Companies that find themselves stuck due to core rigidity usually do not improve themselves. Moreover, they tend to become obsolete and often struggle to compete with other firms that are more adaptable or innovative than them.
