Answer:
<u><em>Microeconomic issues</em></u>
<em>a)How will an increase in the price of Coca-Cola affect the quantity of Pepsi-Cola sold?</em>
<em>c)How does a quota on textile imports affect the textile industry?</em>
<u><em>Macroeconomic issues</em></u>
<em>(b) What will cause the nation's inflation rate to fall?</em>
<em>(d) Does a large federal budget deficit reduce the rate of unemployment in the economy?</em>
<em></em>
Explanation:
The issues pertaining to a industry and business are all studied and analyzed in <em>Microeconomics that's why (a) & (c) fall under Microeconomic issues.</em>
The issues pertaining to the entire economic system like inflation, budget deficit and unemployment rate etc. as stated in options <em>(b) & (d) </em>respectively all fall under <em>Macroeconomic issues. </em>
Answer: 15.05%
Explanation:
Expected return is a weighted average of the individual returns of the composite stocks;
= (weight of A * return on A) + (weight on B * return on B)
= (67% * 20%) + (33% * 5%)
= 15.05%
Answer:
The correct answer is letter "D": discounting all expected future cash flows to reflect the time value of money.
Explanation:
Discounting cash flows takes place at any moment given when money is paid at one date but is received at a different point. Discounted cash flows are useful to measure the difference between the present value of money and the receivables that are expected to come at a later stage.
Answer:
Net cash flow= $66,000
Explanation:
Giving the following information:
An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the project is $30,000 and the firm’s tax rate is 40 percent.
Net cash flow= EBT - Tax + Depreciation
Net cash flow= 60,000 - (60,000*0.4) + 30,000= $66,000
