1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
arsen [322]
3 years ago
5

One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. a second

bag of flour is sold to a consumer in a grocery store for $2.00. taking these three transactions into account, what is the effect on gdp?
Business
1 answer:
ale4655 [162]3 years ago
3 0
GDP stands for gross domestic product. The GDP allows economist to measure the market value in terms of money. They are measuring the final good or service that is being offered to a customer over any given time. 

Since the first bag of flour is being sold to a bakery to make bread from and sell for $4.00 the GDP of this item is $4.00 because that is the cost a customer is paying.

The second bag of flour is sold to a customer for $2.00 in a grocery store and is the final cost a they are paying.

In this scenario, the GDP for the two products being sold to a customer is $6.00.
You might be interested in
Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $22 to the public. Maxwell will receive
kramer

Answer:

$1.86

Explanation:

Earnings per Share = Earnings Attributable to Holders of Common Stock  ÷ Common Stock Outstanding

Old Earnings Per Share

Earnings per Share = $6,000,000 ÷ 1,000,000 = $6.00

New Earnings Per Share

Earnings per Share = $6,000,000 ÷ 1,450,000 = $4.14

Dilution in earnings per share = $6.00 - $4.14 = $1.86

7 0
3 years ago
Consider the following capital budgeting problem, you invest 100 and expect to receive $50 in each of the next three years. The
Zanzabum

Answer:

What is the initial cost of the project?

the initial cost or initial outlay = $100

how much value is created?

the NPV of the project = -$100 + $50/1.1 + $50/1.1² + $50/1.1³ = $24.34

the NPV basically gives us how much value or wealth is created by the project

and what would you be willing to sell the project for?

selling price = $124.34 (= initial outlay + NPV)

6 0
3 years ago
Suppose Acme Industries correctly estimates its WACC at a given point in time and then uses that same cost of capital to evaluat
slamgirl [31]

Answer:

the firm will become more reasky as their Weighted-average cost-of-capital will change over time based on market condition but the management wil take project based on obsolete information

Thus, the WACC of the company will increase without the management notice this because, lender will use higher rate to make up for the change of failling Also, the shares wil trade at a lower value as is not maximizing the value of the firm.

Explanation:

4 0
3 years ago
In contemporary Japanese society, a group is associated with:______
ElenaW [278]

Answer:

d. the company a person works for.

Explanation:

In contemporary Japanese society, a group is associated with the company a person works for.

A group typically comprises of two or more people who share some things in common such as identity, aims, interest and are willing to work in an accord.

Hence, the company or organization an individual works for, is usually considered to be a group in the contemporary Japanese society.

This is so because employees are blinded by a common goal, aim, interest to allow them work effortlessly, effectively and efficiently together.

3 0
3 years ago
Which of the following statements is CORRECT?a. The NPV method assumes that cash flows will be reinvested at the risk-free rate,
quester [9]

Answer:

e. The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the IRR. Explanation:

Under the NPV method that is the Net Present Value method, discount rate used is cost of capital of a company, that is Weighted Average Cost of Capital. This is to ensure that the company is able to meet its current financing cost.

Under the IRR method the rate is calculated at which the return of investment and cost of such project or investment is equal, if it is more than cost of capital the project is acceptable.

Therefore, statement e stating that the NPV method uses the cost of capital and IRR uses the IRR rate is correct.

8 0
3 years ago
Other questions:
  • Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a curren
    7·1 answer
  • The instructions for the OS provided by application software are known as _____.
    6·2 answers
  • A store manager needs to run a report of last month’s sales. The manager would like the report to highlight products that sold o
    15·1 answer
  • Which type of demand for money causes the demand for money curve to slope downward? question 2 options: 1) speculative demand. 2
    8·1 answer
  • ValiantCorp is a C corporation that earned$ 3.90 per share before it paid any taxes. ValiantCorp retained​ $1 of after tax earni
    9·2 answers
  • Which of the following is/are required to report on business segments? I. Publicly-traded enterprises II. Not-for-profit enterpr
    14·1 answer
  • In an effort to get him to clean his bedroom, zack's mother gave him a gold star every time he cleaned it. each time he earned f
    13·1 answer
  • Our company has an account receivable for $12,500 that we have now deemed uncollectible. We use the direct write-off method. Whi
    7·1 answer
  • Elasticity is the percentage change in quantity divided by the percentage change in _____.
    12·1 answer
  • Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument sho
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!