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4 years ago

A decrease in "financial frictions" is associated with ________.

Business

1 answer:

qaws [65]4 years ago

8 0

Answer:

The correct answer is option E.

Explanation:

Financial frictions in the process of making transactions, it refers to the stickiness involved in the process of making transactions. It includes the time, money and efforts that are involved in gathering information and making a transaction.

Institutional reforms can help in reducing financial frictions. A decrease in financial frictions will make transactions easier.

It will help in increasing planned investment spending. The financial markets will be able to function more efficiently.

The cost of borrowing for business will decrease, this will increase investment expenditure.

The credit spread or difference between yields from a government bond and some other bond with the same maturity will decrease.

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Metropolitan Water Utility is planning to upgrade its SCADA system for controlling well pumps,booster pumps, and disinfection eq

Licemer1 [7]

Answer:

net wortht -143,280.85

equivalent annual cost $ 24,932.98

Explanation:

We sovle for the present value of each annuity:

The first three years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 31,000.00

time 3

rate 0.08

$31000 \times \frac{1-(1+0.08)^{-3} }{0.08} = PV\\$

PV $79,890.0066

Then the second phase annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000.00

time 5

rate 0.08

$20000 \times \frac{1-(1+0.08)^{-5} }{0.08} = PV\\$

PV $79,854.2007

NOw, we discount this as it is three years into the future

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $79,854.2007

time 3.00

rate 0.08000

$\frac{79854.2007415617}{(1 + 0.08)^{3} } = PV$

PV 63,390.8391

Total net worth:

79,890.0066 - 63,390.8391 = -143,280.85

The EAC will be the annuity which makes the Present work

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 143,280.85

rate 0.08

time 8

$143280.85 \div \frac{1-(1+0.08)^{-8} }{0.08} = C\\$

C $ 24,932.983

7 0

3 years ago

Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,125 in annual interest

NNADVOKAT [17]

Answer:

From all indications,it is very clear that the question requires a journal entry to record the unpaid interest.

Dr Interest expense $1125

Cr Interest payable $1125

Explanation:

This is a typical case of an omitted entry in the books of accounts,specifically it relates year-end close accounting adjustments.

Under the accrual basis, which is prevalent in the private sector,expenses are to recorded when incurred not when they are settled in cash,as result it is imperative that the above transaction needs be adjusted by debiting interest expense account and crediting same amount to interest payable account to affirm that the company has an obligation to $1125 to mortgage providers.

5 0

3 years ago

You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog

EleoNora [17]

Answer:

Hold meeting with employees, volunteers and representatives of other local shelters and listen carefully as they brainstorm ideas.

Explanation:

A leader can be defined as an individual who motivates and inspires a group of people towards achieving a common goal. A good leader must possess the following characteristics:

1) A leader must be a good communicator, he/she must be able to deliver information to the group in an orderly manner.

2) A good leader must be able to inspires others.

3) A leader must lead with honesty.

4) A leader must be able to make good decisions.

5) A good leader should be able to account for his/her various activities.

8 0

4 years ago

Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufactu

borishaifa [10]

Answer:

a.$210,000

b. $158,000

c. $53,000

Explanation:

Calculation to determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company.

A)Calculation to determine the March manufacturing margin

Using this formula

Manufacturing Margin =(Sales – Cost of Goods Sold)

Let plug in the formula

Manufacturing Margin=450,000 – 240,000

Manufacturing Margin= $210,000

(B)Calculation to determine contribution margin,

Using this formula

Contribution Margin =(Gross Manufacturing Margin – Variable Expenses)

Let plug in the formula

Contribution Margin=210,000 – 52,000

Contribution Margin= 158,000

(C)Calculation to determine the March income from operations for Philadelphia Company

Using this formula

Income from Operations= (Sales – All expenses)

Let plug in the formula

Income from Operations= 450,000 – 397,000

Income from Operations = 53,000

Therefore the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company are:

a.$210,000

b. $158,000

c. $53,000

3 0

3 years ago

Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on the "Price Is

tekilochka [14]

Answer:

$16,100

Explanation:

The computation of the amount included in the federal taxable income is shown below:

= Winning of car price + winning amount + credit and sign up bonus

= $15,500 + $500 + $100

= $16,100

hence, the amount involved in the federal taxable income is $16,100

We simply applied the above formula so that the correct value could come

4 0

4 years ago

A decrease in​ "financial frictions" is associated with​ ________.

A decrease in "financial frictions" is associated with ________.