In order to calculate _____ using cost plus markup, a seller needs to know two things the cost of the item in the market.

Suppose the gdp is in equilibrium at full employment and the mpc is .80. if government wants to increase its purchase of goods a

melamori03 [73]

The marginal propensity to consume is a metric that quantifies the concept of increase in consumption with an increase in income. Mathematically MPC is defined as:

MPC = Change in consumption / Change in income

Purchase of goods and services is considered as consumption, therefore:

Change in consumption = $16 billion

In the government’s perspective, taxes are considered as income, therefore the problem ask us to find for the necessary change in tax collection to maintain equilibrium GDP. Substituting the values in the formula:

0.80 = $16 billion / Change in income

Change in income = $20 billion

Therefore the government should increase the tax collection by $20 billion.

6 0

3 years ago

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Which of the following types of documents is used to ensure that the project has clear boundaries for what is and is not include

elena55 [62]

4. A scope statement

For example, if you are remodeling your kitchen and dining room the scope statement would say what would be done in those rooms and that NO work would be done in the rest of the house. It is an important document to make sure all parties are on the same page.

8 0

3 years ago

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High Flyer, Inc., wishes to maintain a growth rate of 16.75 percent per year and a debt–equity ratio of 1.05. The profit margin

mylen [45]

Answer:

The dividend payout ratio is -48.12%

The Sustainable growth rate is 16.74%

Explanation:

In order to calculate the dividend payout ratio we would have to calculate the following formula:

growth rate=(ROE x dividend payout ratio ) / [ (1 - (ROE x dividend payout ratio))

To calcuate the ROE we would have to use the following formula:

ROE=Profit margin x Total asset turnover x Equity multiplier

ROE=0.045 x 1.05 x (1 + 1.05)

ROE=0.0968625

Therefore, dividend payout ratio would be calculated as follows:

0.1675 = (0.0968625 x dividend payout ratio) / [ 1 - (0.0968625 x dividend payout ratio))

0.1675 = 0.0968625 dividend payout ratio / (1 - 0.0968625 dividend payout ratio)

0.1675 - 0.016224469 dividend payout ratio = 0.0968625 dividend payout ratio

0.1675 = 0.113086969 dividend payout ratio

dividend payout ratio=1.481160928

Therefore, dividend payout ratio=1-1.481160928

dividend payout ratio=-48.12%

To calculate the Sustainable growth rate we would have to calcilate the following formula:

Sustainable growth rate=ROE*b/1-ROE*b

Sustainable growth rate=0.0968625*1.481160928/1-0.0968625*1.481160928

Sustainable growth rate=0.14346895/1-0.14346895

Sustainable growth rate=0.14346895/0.85653105

Sustainable growth rate=16.74%

8 0

4 years ago

Compare revolving credit and closed-end credit.

jolli1 [7]

The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.

5 0

3 years ago

Healthy Living, a diet magazine, collected $240,000 in subscription revenue on May 31. Each subscriber will receive an issue of

stich3 [128]

Answer:

Revenue that has been earned by the end of December is $ 140,000

Explanation:

When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.

The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.

From the first issue June to end of December , there exists 7 issues of magazines.

Revenue to be recognised = $240,000 × 7/12

= $ 140,000

7 0

4 years ago