Answer:
The local city council passes a law that establishes a maximum rent for apartments in your city. Which of the following is likely to happen?
Demand for cheap apartments will increase
Explanation:
When there is maximum price set aside for a good or services, the demand for lower goods would be increased. From the analogy above, since the maximum rent as been set aside, then the demand for cheap apartments will increase as a result of the decision because people would prefer lower prices
Answer:
15.4%
Explanation:
Calculation to determine your best guess for the rate of return on the stock
The revised estimate on the rate of return on
the stock would be:
Before
14% = α +[4%*1] + [6%*0.4]
α = 14% - 6.4%
α = 7.6%
With the changes:
7.6% + [5%*1] + [7%*0.4]
= 7.6% + 5% + 2.8%
= 15.4%
Therefore your best guess for the rate of return on the stock will be 15.4%
Answer:
$7,266 net deferred tax expense.
Explanation:
Calculation to determine what deferred income tax expense or benefit would be
Using this formula
Deferred income tax expense=[(Tax depreciation exceeded book depreciation-Increase in reserve for bad debts)* Tax rate ]
Let plug in the formula
Deferred income tax expense=[($40,400-$5,800)*21%]
Deferred income tax expense=34,600*21%
Deferred income tax expense=$7,266
Therefore the deferred income tax expense or benefit would be $7,266
Answer:
acid-test ratio 1,4044
Explanation:
We are asked for a variation ofthe current ratio
whie current ratio is determinate like:
the acid-test will remove inventory from the current assets, leaving only cash, marketable securities and accounts receivables considered for the calculations:
191,000 current assets - 85,000 inventory = 106,000
136,000 current liabilities
191,600 / 136,000 = 1,4044
