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3 years ago

An example of mandatory spending is financing for

1 answer:

7 0

An example of mandatory spending is financing for A. INTEREST PAYMENTS ON THE FEDERAL DEBT.

Mandatory spending is a federal spending that does not undergo the annual budgeting or appropriation process. It is a spending that is based on existing laws. Changes in mandatory spending may only be implemented if the existing laws related to it is also changed.

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When the price of movie tickets in a certain town was reduced, the movie-theaters' revenues did not change. This suggests that t

bearhunter [10]

Answer:

Elasticity is 1.0

Explanation:

Price elasticity is a measure of the responsiveness of quantity demanded to changes in prices.

When the ratio of change in quantity to change in price is one, it is unit elastic.

So if price of movie tickets reduce by 5 units the quantity will increase by 5 units.

This will result in same amount of revenue at all prices.

The demand is perfectly elastic.

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3 years ago

As the new office manager at a medical office, you discover that several of the employees are not behaving in a welcoming or war

Feliz [49]

Why did the other office manager leave? On his/her own accord? Fired?

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3 years ago

The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost

Licemer1 [7]

Answer:

Explanation: Cost of equity can be defined as the return that the investors demand for bearing the risk of ownership in company's equity shares. It can be computed by using CAPM model which is represented as follows :-

cost of equity = risk free rate + beta *(market risk premium)

$K_e=\:R_f\:+\beta \left ( Er_m \right )$

$K_e=\:3.86\%\:+\b0.92 \left ( 5.75\% \right )$

= 9.15%

3 0

3 years ago

Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, w

steposvetlana [31]

Answer:

a. Annual Net cash flows:

= Revenue - Expenses + Depreciation

= 26,000,000 - 15,000,000 + (90,000,000 / 30 years)

= 11,000,000 + 3,000,000

= $14,000,000

b. Net present value:

= Present value of cashflows - Investment cost

= (Annual cashflow * present value of an annuity, 14%, 30 periods) - Investment cost

= (14,000,000 * 7.003) - 90,000,000

= $8,042,000

c. Company should construct the hotel as it would bring a positive Net Present Value

Note: In "b" the cashflow was treated as an annuity because it is constant.

3 0

3 years ago

An airport shuttle company forecasts the number of hours its drivers will work based on the distance to be driven (in miles) and

siniylev [52]

Answer:

5.5 Hours

Explanation:

The main difference among both the drivers is the number of jobs and the difference of working hours can only be determined by adding number of jobs. Sofia has two more jobs compared to victor. Following is the method to calculate the working hours:

4+0.75(2)=5.5 hours

Sofia is expected to work for 5.5 hours

3 0

3 years ago