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3 years ago

Give an example of two economic goals conflicting with each other

2 answers:

5 0

<span>Full Employment or Job Security clashes with Price-level solidness. As the quantity of individuals that are working builds up, the likelihood of expansion of prices with regards to inflation also rises as well.It's a very crucial short term example of an economic tradeoff between unemployment and inflation.</span>

Alexxandr [17]3 years ago

4 0

Any country around the world has certain targets for becoming an ideal and economically stable nation. Economic goals of full employment, stability, economic growth, efficiency, and equity are widely considered to e beneficial and worth pursuing for a country to achieve economic stability. Full employment and price stability are goals that conflict with each other. Full employment is an economic situation in which all the available labor resource is being used in the most efficient way possible while price stability implies avoiding both prolonged inflation and deflation.

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Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. What was th

Gala2k [10]

Answer:

times-interest-earned ratio will be 3

So option (a) will be correct answer

Explanation:

We have given total sales = $400000

Operating expenses = $362500

And interest charges = $12500

So earning before interest and taxes = sales - operating cost = $400000 - $362500 = $37500

We have to find the times-interest-earned ratio

So times-interest-earned ratio is given by

times-interest-earned ratio = $\frac{earning\ before\ interest\ and\ taxes}{interest\ expense}=\frac{37500}{12500}=3$

So option (A) will be correct option

7 0

4 years ago

Your customer calls you in the morning and tells you to lock the interest rate at the 5.5% you initially disclosed. You commit t

Lorico [155]

Answer: You or your company should pay the $500 and lock the rate.

Explanation:

You had already given your customer reasonable assurance that you would lock the rate so this is what they expect. You must therefore do as you have promised to your customer regardless of what the cost would be because the fault here lies with you.

You should therefore pay the $500 unless there is some company policy that allows them to pay it instead. Once done, you will be able to lock in the rate and fulfill your obligation to your customer.

3 0

3 years ago

Edwards Construction currently has debt outstanding with a market value of $101,000 and a cost of 10 percent. The company has EB

Mashcka [7]

Answer:

(a) (i) 0

(ii) 1

(b) $27,775; 0.784

Explanation:

a-1)

Interest paid = market value of debt × cost

= $101,000 × 0.1

= $10,100

EBIT = $10,100

Cash flow to shareholders = EBIT - Interest paid

= $10,100 - $10,100

= 0

value of equity = 0

a-2)

Debt to value = total debt ÷ total value of firm

total debt value debt is $101,000

No default is likely to occur

Hence , total value of firm = total debt

= $101,000

Hence, the debt to value ratio is 1 .

(b) At growth rate 2%

EBIT next year will be:

= $10,100 × (1.02)

= $10,302

Since there is no risk, the required return for shareholders is the same as the required return on the company’s debt.

The payments made to the shareholders increase at 2% every year.

Present value of these payments :

Value of equity = [ $10,302 ÷ (0.1 - 0.02)] - [$10,100 ÷ 0.1]

= $128,775 - $101,000

= $27,775

Debt to value ratio = $101,000 ÷ ($101,000 + $27,775)

= 0.784

EBIT next year will be:

= $10,100 × (1.06)

= $10,706

Present value of these payments :

Value of equity = [ $10,706 ÷ (0.1 - 0.06)] - [$10,100 ÷ 0.1]

= $267,650 - $101,000

= $166,650

Debt to value ratio = $101,000 ÷ ($101,000 + $166,650)

= 0.377

7 0

3 years ago

Why there is limited foreign investment in Ethiopia?

matrenka [14]

Answer:

mainly because of the countries negative trade balance, but also because it is strictly regulated by the central bank which is the National bank of Ethiopia.

5 0

2 years ago

Making blackmail, extortion, and other forms of private coercion illegal is one way that government A. reduces private-sector ec

adell [148]

Answer:

The correct answer is A. Reduces private-sector economic risk.

Explanation:

Economic risk refers to the uncertainty produced in the return on investment due to changes in the economic situation of the sector in which the company operates. Thus, by way of example, this risk may come from: the management policy of the company, the policy of distribution of products or services, the appearance of new competitors, the alteration in the tastes of consumers, and so on.

Economic risk is a direct consequence of investment decisions. So the structure of the company's assets is responsible for the level and variability of operating benefits.

8 0

4 years ago