Supply-side economics attempts to stimulate output and lower unemployment by reducing taxes to stimulate investment and consumer spending.
<h3>What is supply-side economics?</h3>
Supply-side economics is a economics theory that focuses on the supply of labour and goods. It postulates that taxes and benefits can be used as incentives to stimulate the economy.
Supply-side economics was introduced by Arthur Laffer and implemented by Pres. Ronald Reagan in the 1980s.
Answer:
$231,000
Explanation:
With regards to the above, the total sales would be;
= Number of units Bradford inc. Is expected to sell × Per unit of ceramic vases
Given that;
Units expected to be sold = 11,000
Per unit of ceramic vases = $21
Total sales
= 11,000 units × $21
= $231,000
Since we were asked to get the total sales, we will simply multiply the per units sold with the units expected to be sold. Other information are not useful for the purpose of calculating the total sales.
Answer:
c. 11.02 percent
Explanation:
Weighted Average Cost of Capital (WACC) is the return that is required by the long term providers of Finance for the Business.
WACC = Ke × E/V + Kp × P/V + Kd × D/V
Where,
Ke = Cost of Equity
= 15.8 %
E/V = Market Weight of Equity
= 0.46
Kp = Cost of Preference Stock
= 8.3 %
P/V = Market Weight of Preference Stock
= 0.05
Kd = After tax Cost of Debt
= 6.8 %
D/V = Market Weight of Debt
= 0.49
Therefore,
WACC = 15.8 % × 0.46 + 8.3 % × 0.05 + 6.8 % × 0.49
= 11.015 or 11.02 %
Answer:
$71.80
Explanation:
First, calculate the present value (PV) of each year's dividend at 11% required return;
PV(of D1) = 1.65 / (1.11) = 1.4865
PV(of D2) = 1.97 / (1.11²) = 1.5969
PV(of D3) = 2.54 / (1.11³) = 1.8572
Find D4 = 2.54(1+0.08) = 2.7432
Next find Present value PV of terminal cashflows
PV(of D4 onwards) = 
Add the PVs to find the current value of the stock today;
= 1.4865 + 1.5969 + 1.8572 + 66.8601
= 71.8007
Therefore, it is worth $71.80
Answer:
the variable cost is $4,025,000
Explanation:
The computation of the variable cost is as follows:
Given that
Sales units = 350,000 units.
Sale Price = $19.50.
Fixed cost = $1,225,000.
Pre tax income = $1,575,000
Based on the above information
Sale Value is
= 350,000 units × $19.50
= $6,825,000.00
Now
Contribution Margin is
= Sales - Fixed cost
= $6,825,000 - $1,225,000
= $5,600,000
And,
Variable Cost is
= Contribution margin - Pretax income
= $5,600,000 - 1,575,000
= $4,025,000
hence, the variable cost is $4,025,000
