B. Command economy
This is because this is exactly what. Command economy does
Answer:
$603.65
Explanation:
The correct and accurate cash balance need to be calculated. This is done by preparing a Bank Reconciliation Statement.
Bank Reconciliation Statement.
Balance as per Bank Statement $1,383.00
Add Outstanding Lodgments $0
Less Unpresented Checks ($260.50 + $425.10 + $331.00) ($1,016,60)
Add Error on Bank Statement $237.25
Balance as per Cash Book $603.65
therefore,
the adjusted ledger balance of cash as of August 31 is $603.65
Answer:
Real GDP will rise by $100 million
Explanation:
Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]
Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP
At equilibrium : AD or APE = AS or NY or GDP
If AD or APE increases by $100 million :
AD or APE > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE
So, GDP will also rise by $100 million
Answer:
B. more shares will dilute the existing value of the stock, causing its market price to fall
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The reason a large publicly traded corporation would likely prefer issuing bonds as a way to raise new money as opposed to issuing more shares is because more shares will dilute the existing value of the stock, causing its market price to fall and may negatively affect by reducing the value and proportional ownership of the investor's shares in the corporation.
a.
WACC is calculated as –
WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)
WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))
WACC = 10.46%
b. After tax cost of debt is calculated as –
After tax cost of debt = (1- tax rate) X cost of debt pre-tax
After tax cost of debt = ((1- 40%)*8.1%))
After tax cost of debt = 4.86%
