Answer:
c, checking and saving accounts
Answer: Optimization of resource allocation
Explanation: Macroeconomics, in simple words, refers to the study of economy as whole. It focuses on factors, the impact of which is high on economy such as interest rates and national productivity.
One of many concerns that macroeconomics deals with is optimization of resource allocation, which means using resources in that sector which gives the best results and maximum profit to the economy.
Answer:
The value of the levered firm $31,125
Explanation:
Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.
EBIT $4,250.00
Less
Interest <u>$0.00 </u>
EBT $4,250.00
Tax 35% x 4250 <u>$1,487.50</u>
EAT <u>$2,762.50</u>
Cost of Capial 10%
Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625
Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500
Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125
Value of debt = $10,000
Value of levered Firm = $21,125 + $10,000 = $31,125
When the long run equilibrium is re-established, the price will be the amount at which a pound was selling initially, which is $3.25 per pound.
The announcement that mad cow disease has been discovered in the United states will momentarily lowers the demand for beef and the price will be forced to come down. But on the long run, the initial equilibrium price will be re-established.
Answer:
The lender should use 4%, semi-annual rate in order to calculate the amount of interest it will receive in cash.
Explanation:
Since RUSS Inc. has already borrowed money at a 4%, semi-annual note from a family friend, it is irrelevant what the market rate is after RUSS has taken the loan. RUSS Inc. will pay and the lender will receive interest on the mutually agreed rate according to their agreement.
