Answer:
b. $150,500
Explanation:
debit/capital = $185000/$610000
= 30%
target debt is 55%
debt/capital = 0.55
let the new debt be Y
Y/$610,000 = 0.55
Y = $335,500
excess debt need by company = $335500 - $185000
= $150500
Therefore, The debt that the company must add to achieve the target debt to capital ratio is $150500.
Answer:
Raising; above potential income
Explanation:
- The courter policy refers to the strategy of the government to take control over the recession by the use of fiscal measures and thus works to stabilize the economy and thus increase public taxes and reduces public expenditure during the recession.
Answer:
Price levels
Explanation:
Price level is an indicator that is obtained by getting the average price of goods that are produced within an economy or an industry.
When prices rise it indicates that demand for a good is on the rise and eventually an inflation may result. When price falls demand has reduced and deflation may result.
In the given scenario price level is the best indicator to show how prices of properties in the area have fluctuated.
It will also give insight into how good a property purchase will be.
