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Nikitich [7]
3 years ago
8

Consider the three theories of the upward slope of the short-run aggregate-supply curve. According to the sticky-wage theory, th

e economy is in a recession because the price level has declined so that real wages are too_____ , thus labor demand is too______ .According to the sticky-price theory, the economy is in a recession because______ .According to the misperceptions theory, the economy is in a recession when the price level is_______ what was expected. (fill in the blanks).
Business
1 answer:
mrs_skeptik [129]3 years ago
7 0

Answer:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too low.

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

According to the misperceptions theory, the economy is in a recession when the price level is below what is expected.

Explanation:

The above mentioned are the three theories of the upward slope of the short-run aggregate-supply curve.

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Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m
Hoochie [10]

The free cash flow can be calculated as below:

Revenue 12000000

Less: Expense (8000000)

Less: Depreciation (1500000)

Earnings Before Tax 2500000

Less Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Less: Change in Working Capital (500000)

Less : Purchase of Asset (700000)

Free Cash Flow 2050000

Thus Free Cash Flow can be calculated as above.

4 0
3 years ago
Cindy goes to the lumber yard to buy lumber for a deck that she is building. She tells the salesperson at the lumber yard that s
aivan3 [116]

Answer:

<em>c. Implied warranty of fitness for a particular purpose </em>

Explanation:

The warranty of fitness for a particular purpose is inferred whenever a purchaser depends on the supplier to pick the products to fit a particular query.

For instance, if a customer asks a mechanic to supply winter tires and receives tires that are unfit for use in weather, this warranty is breached.

It is also possible to explicitly revoke this implicit warranty by name, thus moving the threat of unfitness back to the purchaser.

7 0
3 years ago
Your father is now planning to retire, and his employer has promised him a guaranteed, but fixed, income of $50,000 per year for
ohaa [14]

Answer:

(C) 18,844.47

Explanation:

You need to use the  Inflation-Adjusted Return formula:

InflationAdjustedReturn=\frac{1+return}{1+inflationrate}-1

So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process

InflationAdjusted ReturnYear1=\frac{1+return}{1+inflationrate}-1=\frac{1+50000}{1+0.05}-1=47,619

InflationAdjusted ReturnYear2=\frac{1+returnyear1}{1+inflationrate}-1=\frac{1+47,619}{1+0.05}-1=45,351

InflationAdjusted ReturnYear3=\frac{1+returnyear2}{1+inflationrate}-1=\frac{1+45,351}{1+0.05}-1=43,192

And so on...

InflationAdjusted ReturnYear20=\frac{1+returnyear19}{1+inflationrate}-1=\frac{1+19,787}{1+0.05}-1=18,844

Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer

Online calculator:

https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/

3 0
3 years ago
Hankins Corporation has 7.5 million shares of common stock outstanding, 275,000 shares of 4.7 percent preferred stock outstandin
yulyashka [42]

Answer:

7.98%

Explanation:

For computing the market value capital structure we need to do following calculations which are shown below:

Market value of stock = 7,500,000 ×  $62 per share = $465,000,000

Cost of Equity = Risk Free rate + Beta × Market risk Premium

= 3.4% + 1.10 × 7.2%

= 11.32%

Market value of Bond = 108% × $2,000 × 160,000 bonds = $345,600,000

Coupon = 5.6% × 2000 ÷ 2 = 56

Number of Periods(n) = 18 × 2 = 36

Market value = $2000 × 1.08 = $2160

Cost of debt (YTM) using excel formula is

= RATE(36,56,$2,000,-$2,160)

= 4.92%

Market value of Preferred Stock = 275,000 × $94 = $25,850,000

Cost of Preferred Stock = 4.7%

Total value = $465,000,000 + $345,600,000 + $25,850,000

= $836,450,000

Equity ratio = $465,000,000 ÷  $836,450,000 = 0.5559

Debt ratio = $345,600,000 ÷ $836,450,000 = 0.4132

Preferred Stock ratio = $25,850,000 ÷ $836,450,000 = 0.0309

Now the market capital structure is

Cost of Project = Equity Ratio × Cost of Equity + Debt ratio × ( 1-Tax rate) × Cost of Debt + Preferred Stock ratio × Cost of Preferred stock

= 0.5559 × 11.32% + 0.4132 × (1 -24%) × 4.92% +  0.0309 × 4.7%

= 7.98%

3 0
3 years ago
Brangelina Adoption Agency’s general ledger shows a cash balance of $4,593. The balance of cash in the March-end bank statement
aliya0001 [1]

Answer:

$4.542

Explanation:

Bank services fees must be included in  balance, as well as  interest earned, but checks outstanding no, because they arent paid yet.

So the correct calculation is:

$ 4.593 - $85 + $34 =  $4.542

5 0
3 years ago
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