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3 years ago

Camile Plastics Company had the following total assets, liabilities, and equity as of December 31.

Business

1 answer:

Ugo [173]3 years ago

8 0

Answer:

B) 30.70%

Explanation:

Given: Assets= $430000.

Liabilities= $132000.

Equity= $298000.

Now, computing to find debt ratio.

Formula; Debt ratio= $\frac{Total\ liabilities}{Total\ assets} \times 100$

⇒ Debt ratio= $\frac{132000}{430000} \times 100$

∴ Debt ratio= $30.70\%$

Debt ratio determine the financial risk of the company, as higher is the debt ratio, greater is the financial leverage of the company and it also show the percentage of the assets funded by debt.

Hence, 30.70% is the company's debt ratio as of December 31.

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Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then a. neither the n

Dmitrij [34]

Answer:

a. neither the nominal nor the real interest rate rise.

Explanation:

Under Fisher's theory, if the nominal interest rate increases at a higher rate than the inflation rate, then the real interest rate rises. If the inflation rate increases more than the nominal interest rate, then the real interest rate decreases.

Generally, an increase in the money supply decreases the nominal interest rate and increases the inflation rate. That results in both lower nominal interest rates and lower real interest rates.

3 0

4 years ago

The price of a new computer game has demand of 3,000 units at $50 and 2,500 units at $60. Calculate the Price Elasticity of Dema

kondaur [170]

Answer:

option D "The demand is unitary elastic."

Explanation:

Data provided:

At price, P1 = 3,000 units

Demand, D1 = $ 50

also,

at price P2 = $ 60

Demand, D2 = 2,500 units

Now,

the percentage change in price = $\frac{60-50}{50}\times100$

the percentage change in price = 20%

and,

The percentage change in the quantity = $\frac{2500-3000}{2500}\times100$

The percentage change in the quantity = -20%

The elasticity in demand (Ed) is given as:

Ed = (Percentage change in quantity) / (Percentage change in price)

on substituting the values, we get

Ed = (-20%) / 20%

Ed = - 1

Here the negative sign depicts the inverse relation between the price and the demand.

hence, the correct answer is option D "The demand is unitary elastic."

8 0

3 years ago

Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Ly

Juliette [100K]

Answer:

Lynn will receive $63,754 at the end of 8 years.

Explanation:

Future value is the sum of value of principal invested and compounded return received over the investment period.

Using following formula of future value to calculate the required interest rate.

FV = PV x ( 1 + r )^n

PV = Present value = $40,000

n = number of years = 8 years

r = Interest rate = 6%

FV = Future value = ?

FV = $40,000 x ( 1 + 6% )^8 = $63,754

8 0

4 years ago

Read 2 more answers

Which of the following is a transaction for Tyler Corporation?

Ilya [14]

Answer:

Tyler pays its employees $400 for work done.

Explanation:

An accounting transaction is a financial event that has occurred already and can be recorded in an organization's financial statement.

In this case, the statement "Tyler pays its employees $400 for work done" is an example of a financial transaction because it has already occurred.

7 0

3 years ago

Read 2 more answers

A university is trying to determine what price to charge for tickets to football games. At a price of $24 per ticket, attendan

m_a_m_a [10]

Answer: Price per ticket should be charged in order to maximize revenue is $15.

70000 people will attend at this price.

Explanation:

Let 'x' represent the decrease .

Using the given information,

Price per ticket = 24 - 3x

Average no. of people that watch the game = 40000 + 10000x

Additional money spent by every person = 6(40000 + 10000x)

Revenue [R(x)] = Price per ticket $\times$ Average no. of people that watch the game + Additional money spent

Revenue [R(x)] = (24 - 3x) $\times$ (40000 + 10000x) + 6(40000 + 10000x)

On solving the above equation we get ,

Revenue [R(x)] = -30000 $x^{2}$ + 180000x + 1200000

In order to find the critical point we'll differentiate the following with respect to x;

R'(x) = -60000x + 180000

∵ R'(x) = 0

x = 3

Thus, the price per ticket that should be charged in order to maximize revenue is (24 - 3 $\times$ 3 = 24 - 9 = $15)

People that will attend at this price = (40000 + 10000 $\times$ 3) = 70000

7 0

4 years ago