A barrier to entry is any factor that makes it difficult for a new firm to enter a market.
Answer:
Each scholarship will have an amount of $ 85,000.
Explanation:
Since Joe and Jorge both graduated from an engineering college and decided to donate money to their college, and they set up 10 engineering scholarships per year starting in 2046 for every year, if $ 50,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 12% per year, to determine what will the amount of each scholarship be starting in 2046 the following calculation must be performed:
(50,000 x 1.12 ^ (2046-2021)) / 10 = X
(50,000 x 1.12 ^ 25) / 10 = X
850,003.22 / 10 = X
85,000.32 = X
Therefore, each scholarship will have an amount of $ 85,000.
Answer:
0.347
Explanation:
Data provided in the question:
Net income = $360,000
Dividends paid on common stock = $125,000
Dividends paid on preferred stock = $50,000
Common stockholders’ equity at the start of the year = $1,600,000
Common stockholders’ equity at the end of the year = $2,000,000
Now,
Payout ratio
= ( cash dividends declared to common stockholders ) ÷ ( Net income )
= $125,000 ÷ $360,000
= 0.347
Answer:
The answer is: $600
Explanation:
Ellison Inc.'s total sales for the year were $18,000. By the end of the year $12,000 had been paid in cash and $6,000 still remained as accounts receivable. Out of those $6,000, the credit manager estimates 10% will be be noncollectible, that amounts to $600 ($6,000 x 10%).
Answer:
A cut in interest rates will cause the following effects:
- Output: output will increase because an interest rate cut makes credit cheaper. Firms will now borrow more money at cheaper interest, and will invest those funds in producing more.
- Inflation: an interest cut is produced by an increase in the money supply. When the money supply increases, inflation goes up as well.
- Unemployment: unemployment will go down. Because there is more money in the economy, there is also cheaper credit, and as explained above, firms will make use of these cheap credits to invest more and produce more. To do so, they will need to hire more workers.
