Answer:
c
Explanation:
here are their assumptions
- All expectations on expected cash flows are homogenous
- bonds and shares are traded in perfect markets - there are no transaction costs. two investments with identical cash flows, terms and risk must trade at the same price
- investors can borrow and lend at the risk free rate
- there are no agency cost
- investing and financing decisions are independent of each other
Answer:
$52,500
Explanation:
Manufacturing overhead are allocated at a rate of $15 per direct labor-hour.
Allocated manufacturing overhead:
= Number of direct labor hours × Manufacturing overhead rate per direct labor hour
= 3,500 hours × $15
= $52,500
Therefore, the actual amount of manufacturing overhead costs incurred in June 2015 totals $52,500.
Answer:
15.4%
Explanation:
Calculation to determine your best guess for the rate of return on the stock
The revised estimate on the rate of return on
the stock would be:
Before
14% = α +[4%*1] + [6%*0.4]
α = 14% - 6.4%
α = 7.6%
With the changes:
7.6% + [5%*1] + [7%*0.4]
= 7.6% + 5% + 2.8%
= 15.4%
Therefore your best guess for the rate of return on the stock will be 15.4%
Answer:
d. Shifts the aggregate demand curve to the right
Explanation:
A cut in tax on household's income increase the aggregate demand and therefore shifts the aggregate demand curve to the right. When taxes are decreased, income available for making purchases increases, thus, increasing the consumption in the economy.
Answer:
If Florida experiencing a hurricane which knocked out the regional water supply for several days then the demand for bottled water increased remarkably. This increase in the demand of bottled water shifts the demand curve rightwards and supply curve remains the same. This shift in the demand of bottled water will increase the equilibrium price and equilibrium quantity in a market economy.
