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3 years ago

If households and firms increase the level of private savings because they become pessimistic about the future, then:

1 answer:

8 0

<span>If people are saving their money because of pessimistic feelings about the future then it will have an impact on current spending in the economy. When people are saving instead of investing money or purchasing large items such as homes or vehicles than the businesses in those markets are affected. For example, if there is no one buying new houses, then builders will see a decrease in work and the companies that provide building supplies will be affected. The people in the companies will also begin spending less as there is less work and less money to go around which also affects the economy on a large scale.</span>

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A german toy company manufactures its products within u.s borders. if the company decides to downsize and cut production by half

kow [346]

If the company decided to have its production cut into half of its original value, this will most likely be causing the unemployment of those who originally stayed with the company because of the company will most likely decide to fire some of its people to cut costs. In this essence, the country to which the company manufactures the product will have an increase in the unemployment percentage.

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3 years ago

Read 2 more answers

Flo and Glen form Health Food Inc. to coordinate the purchase, sale, and delivery of food products from organic farms to hospita

aksik [14]

Answer: Option (D)

Explanation:

Benefit corporation is referred to as the traditional organization with the modified accountability delivering it to the higher principle of the purpose, responsibility and transparency. The sole purpose of this Benefit corporation is to commit to the creation of public benefit and thus add sustainable value alongside generating the profit.

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2 years ago

Ellie Inc., a calendar year C corporation, wants to make a gift to a charity that is deductible on its year 1 Form 1120. The gif

ZanzabumX [31]

Answer:

On or before April 15, year 2.

Explanation:

5 0

2 years ago

Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and t

tekilochka [14]

Answer:

7.83%

Explanation:

This is calculated by using the Gordon growth model (GGM) formula as follows: P = d / (r - g) ……………………………………… (1)

Where;

P = market price of the stock = $24.09

d = next year annual dividend = $1.26 r = cost of equity = ?

g = dividend growth rate = 2.6%, or 0.026

Substituting the values into equation and solve for r, we have:

24.09 = 1.26 / (r - 0.026)

24.09 (r - 0.026) = 1.26

24.09r - 0.62634 = 1.26

24.09r = 1.26 + 0.62634

24.09r = 1.88634

r = 1.88634 / 24.09

r = 0.0783038605230386, or 7.83038605230386%

Rounding to 2 decimal places. we have:

r = 7.83%

Therefore, the correct option is 7.83 percent.

6 0

2 years ago

The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,0

Lana71 [14]

Answer:

Net Cash Flow from Financing Activities $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock $90,000

Purchase of treasury stock $50,000

Payment of dividends to common stockholders $10,000

==============================================================

Net Cash Flow from Financing Activities $150,000

Note: Sales of equipment is not included in financing activity

6 0

2 years ago