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3 years ago

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:

Business

1 answer:

lawyer [7]3 years ago

8 0

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of return than the shareholders who could achieve after paying taxes on the dividends.

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In 2002, the annual price of oil was $24.36. As of late July 2006, the annual price of oil was $62.07. The percentage increase i

juin [17]

Answer:

b. oil prices increased faster than real GDP, but real GDP still grew at a healthy pace.

Explanation:

In this example, we compare the annual price of oil and the annual increase in GDP. When we look at the two, we can see that oil prices increased faster than real GDP. Nevertheless, we can also see that GDP still grew at a healthy pace.

GDP refers to Gross Domestic Product. This concept describes the monetary value of all good and services produced within a country's borders in a certain time period. GDP does not describe all the specific economic conditions of a country. However, it is still a useful measure for politicians and researchers in order to estimate the relative health of a country's economy.

5 0

4 years ago

A corporate bond has 22 years to maturity, a face value of $1,000, a coupon rate of 4.6% and pays interest semiannually. The ann

julia-pushkina [17]

Answer:

a. The answer is: $1,008.40

b. The bond's YTM is 3.343%

c. The current yield is 3.826%

Explanation:

a. Bond price formula: ∑(C* / (1+YTM) $n$ )

The price of the bond Intro A with i=1,2...10 is:

∑($1,000 x 3.4% / (1 + 3.3%) $i$ ) = $1,008.40

b. The price of the corporate bond which has 22 years to maturity is: $1,202.20

Given that the bond is trading at par value, the bond's YTM is:

[Annual Interest Payment + ((Face Value – Current Price) / (Years to Maturity))] / ( ( Face Value + Current Price ) / 2 )

= [$1,000 x 4.6% + (($1,000 - $1,202.20) / 22)] / (($1,000 + $1,202.20) /2)

= 3.343%

c. The bond's current yield is:

Annual Interest Payment / Current Price = $46 / $1,202.2 = 3.826%

5 0

3 years ago

Which of the following statements is true? Group of answer choices When you invest money, you are taxed each year on any capital

Misha Larkins [42]

Answer:

Interest earned on an investment is considered to be tax free until you sell the investment.

Explanation:

Time Value of Money is Simply know as to the truth or fact that money received today is worth more money received next year or the year after it.

Future Value is the rate or amount of money an investment will grow to over some period of time at some given interest rate. Investment is simply known as the buying or purchase of assets with the aim of increasing future income and interest.

After-tax rate of returns of investments depends on Before-tax rate of return., When investment income and gains are taxed,Taxed annually, e.t.c.

3 0

3 years ago

Public choice theory suggests that politicians will be most likely to favor redistribution of income from the rich to the poor.

Murrr4er [49]

Answer:

The correct answer is unorganized taxpayers to well-organized interest groups.

Explanation:

Public choice theory seeks to study the problems of political science applied to economics. A positive public election means that the decisions of politicians face the needs of civil society. In the case of the example, it is easy to determine towards whom the work of people in political positions should be oriented, and it is by definition to unorganized communities with some type of unsatisfied basic need.

4 0

3 years ago

Read 2 more answers

Tondre Inc. has provided the following data for the month of July: Direct materials $34,000 Direct labor cost $52,000 Manufactur

Naddika [18.5K]

Answer:

overapplied overhead

$181,000

Explanation:

Prime cost:

= Direct labor cost + Direct materials

= $52,000 + $34,000

= $86,000

Works cost:

= Prime cost + Manufacturing overhead cost applied

= $86,000 + $74,000

= $160,000

Cost of production:

= Works cost + Opening work in process - Ending work in process

= $160,000 + $30,000 - $20,000

= $170,000

Cost of goods sold:

= Cost of production + Opening finished goods - Ending finished goods

= $170,000 + $46,000 - $33,000

= $183,000

Manufacturing overhead cost incurred = $72,000

Overhead is over applied.

Therefore,

Cost of goods sold:

= Cost of goods sold - Manufacturing overhead cost applied + Manufacturing overhead cost incurred

= $183,000 - $74,000 + $72,000

= $181,000

7 0

3 years ago