Answer:
$38,000
Explanation:
The accounting equation shows the relationship between the various elements of the balance sheet which are assets, liabilities and equity. The equation is as shown below;
Assets = Liabilities + Equity
At the beginning of 20x6
$25,000 = liabilities + $16,000
Liabilities = $25,000 - $16,000
= $9,000
If liabilities increases by $8,000
At the end of 20x6,
Liabilities = $9,000 + $8,000
= $17,000
Total Assets = $17,000 + $21,000
= $38,000
Answer:
I wouldn't invest.
Risk preference at least 50-50 chance of gain and loose
Explanation:
case of success the return i get is $40000
case of failure i lose $20000.
My analysis shows P40=0.3 of success
And P-20=0.7 of failure.
The probability of a loose is much bigger than the probability of a gain.
So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.
My loose accumulating to 140000
While my gain is 120000.
I can't invest
Answer:
E) Any of the above may be possible.
Explanation:
Negative feedback means any of following reasons are possible:
1. The decision was a bad one (most probably)
2. More information and new suggestions should be incorporated since the more input better will be the output
3. More time, resources, effort and thought are needed
4. Manager may have to re-start the decision process from beginning
Answer:
13.64%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.8% + 1.7 × (10% - 4.8%)
= 4.8% + 1.7 × 5.2%
= 4.8% + 8.84%
= 13.64%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
Answer:
a. rises but real GDP per person falls
Explanation:
Gross domestic product is the total monetary value of output that is produced by an economy in a given period.
GDP increases as the income increases. This is because people have more money to spend on goods and services.
So if people are retiring they will earn pension that will be spent. This increases productivity of the economy.
However since the number of people working is reducing there will be a reduction in real GDP per person. Only few people are producing and output will be allocated to a large population many of whom are not working.
