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3 years ago

Why is it important to understand economics

1 answer:

Nookie1986 [14]3 years ago

5 0

Macroeconomics is important because it allows the public to understand the economy as a whole, fiscal policy and global economic policy.

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You purchased 50 shares of a stock at $100 per share. Your stock value dropped 5% in one year. If the stock were to continue to

zaharov [31]

Answer:

$4625

Explanation:

Initial value of stock=50 shares each at $100=(50×100)=$5000

Value drops at a rate of 5% in 1.5 years

The total value of the drop=-(5/100)×5000×1.5=-$375

The total value after 1.5 years=Initial value+the drop in value=5000+(-375)=$4625

8 0

3 years ago

Read 2 more answers

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be

kvasek [131]

Answer:

New units sale= 2,063 units

Explanation:

Giving the following information:

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be $80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently, Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000.

First, we need to calculate the current profit:

Sales in units= 1,500

Contribution margin= (200 - 80)*1,500= 180,000

Fixed costs= 95,000 (-)

Profit= 85,000

To calculate the units required to adapt to the new changes using the following formula:

Break-even point= (fixed costs + profit)/ contribution margin

Break-even point= (80,000 + 85,000)/ (200 - 120)

Break-even point= 2,063 units

7 0

3 years ago

A loan in which a parent deposits money with a host-country bank, which then lends the money to a subsidiary located in the host

Sveta_85 [38]

A loan in which a parent deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country is known as a back-to-back loan.

A back-to-back loan is a deal in which two parent corporations from separate nations borrow equal sums of money in their home currencies and lend it to the local subsidiary of the other.

While businesses could trade money on the currency markets, back-to-back loans can be more practical and provide the necessary currency. However, back-to-back loans have mainly been replaced by currency swaps and other comparable instruments. Nevertheless, these tools support global trade.

Learn more about loans here:

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5 0

2 years ago

Generally, a high ___________ ratio could lead investors and creditors to view the company as being very risky debt to owners' e

Ipatiy [6.2K]

High <u>debt to owner's equity ratio. </u>

This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.

6 0

3 years ago

Read 2 more answers

Recommend financial reporting and auditing-related reforms that would likely be effective in preventing or detecting frauds simi

abruzzese [7]

Answer:

The answer is stated below:

Explanation:

If the SEC and the AICPA, worked altogether in order to share the information, they might have detected the fraud prior. The case states that the Madoff Securities does not required to submit the peer review program to AICPA as Friehling, had recorded that he did not perform or conduct any audits.

Recommendation

1. The policy execution for the exchange of the information among the two firms would be useful to detect the fraud.

2. The PCAOB should spend more resources an attending the hotline of whistle blowing through executing the policies which need certain complaints to be addressed effectively.

3. The firms or company should have done more in order to verify the financial statements assertions, which surrounds the investments. The PCAOB need to execute the policy that require the companies (such as Madoff Securities) to correctly answer the inquiries of the auditor.

6 0

3 years ago