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3 years ago

The aggregate-demand curve:

1 answer:

4 0

The aggregate-demand curve shows an inverse relation between the price level and the quantity of all goods and services demanded.

Answer: Option C

<u>Explanation:</u>

Aggregate demand curve is the curve which shows the demand of the goods and the services by all the consumers demanded in the economy. The aggregate demand curve is the curve which shows an average relation ship between the quantity demanded by the consumers and the level of prices of the goods and the services in the economy. Since this relation ship is an inverse relation ship, there fore this curve is also down ward sloping curve.

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Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equi

Reil [10]

Answer:

9.73%

Explanation:

the market value of equity = 10,000,000 stocks x $15 = $150,000,000

the market value of debt = 40,000 bonds x $1,150 = $46,000,000

total = $196,000,000

weight of equity = 0.7653

weight of debt = 0.2347

Re = 3.5% + [1.35 x (0.115 - 0.055)] = 0.035 + 0.081 = 0.116

cost of debt = ytm = {36.25 + [(1,000 - 1,150)/40]} / [(1,000 + 1,150)/2] = (36.25 - 3.75) / 1,075 = 32.50 / 1,075 = 0.03023 x 2 = 0.0605

after tax cost of debt = 0.0605 x (1 - 40%) = 0.0363

WACC = (0.116 x 0.7653) + (0.0363 x 0.2347) = 0.09729 = 9.73%

3 0

3 years ago

Samuel, Inc. has Accounts Receivable of $200,000 and an Allowance for Doubtful Accounts of $10,000. If it writes-off a customer

Tanya [424]

Answer:

Net accounts receivable is $190,000 if Samuel, Inc. writes-off a customer account balance of $1,000.

Explanation:

Net accounts receivable = Accounts Receivable - Allowance for Doubtful Accounts

In Samuel, Inc., before write-off:

Net accounts receivable = $200,000 - $10,000 = $190,000

The company writes-off a customer account balance of $1,000 by the entry:

Debit Allowance for Doubtful Accounts $1,000

Credit Accounts Receivable $1,000

Allowance for Doubtful Accounts and Accounts Receivable decrease $1,000

Net accounts receivable after write-off = $199,000 - $9,000 = $190,000

3 0

3 years ago

Elizabeth and Niko are very organized and do an excellent job organizing their personal financial records. How will this BEST he

grandymaker [24]

Answer:

They will get faster responses.

3 0

3 years ago

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ

taurus [48]

Answer:

8.15 %

Explanation:

Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

<u>Remember to use the After tax cost of debt :</u>

After tax cost of debt = Interest x ( 1 - tax rate)

= 6.50% x (1 - 0.40)

= 3.90 %

therefore,

WACC = 11.25% x 55% + 6.00% x 10% + 3.90 % x 35%

= 8.15 %

Thus,

Quigley's WACC is closest to 8.15 %.

3 0

3 years ago

replacement of skilled workers with machines that can do the job more efficiently is called what? a. deskilling b. downsizing c.

ASHA 777 [7]

The correct answer is A. deskilling

Deskilling is a process in which skilled workers are replaced by technological advancements which make the worker obsolete.

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3 years ago

Read 2 more answers