Inflation means- A general increase in prices and fall in the purchasing value of money.
So if you think about the question and the definition, what answer involves the money going down and or up significantly?
The answer would be,
B, Producers raise prices to meet HIGHER cost.
Hope this helps :)
Answer:
$587,500
Explanation:
You are required to calculate the value of the levered firm;
vL = vU + Dt, whereby;
vL = Value of levered firm
vU = value of unlevered firm
Dt = debt * tax ; which is the tax shield
Find value of unlevered firm;
vU = [EBIT(1-tax) ]/ rE
= [100,000(1-0.30)] / 0.16
= 437,500
Value of levered firm;
vL = 437,500 + (500,000*0.30)
= 437,500 +150,000
= $587,500
They should talk avout why they should be jired for the job and why thw want the job.
Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
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