The economy consists of producers, who make and sell goods and services, and consumers, who buy the goods and services.
Producers rely on consumers to buy from them, and consumers rely on producers to provide the goods and services they want.
Money allows this relationship to work.
Answer:
The answer is option (b)$4,000
Explanation:
Solution
Given that:
Now
The income of George and Martha is =$119.650
For year 2019 child tax credit is $2,000 per dependent child subject to a minimum income of $2,500.
The Income limit for Married Jointly Filed is= $400,000.
Thus
They are eligible for $2,000 tax credit per child.
So,
Tax Credit = $2,000 * 2
= $4,000
Note: The AGI limit phaseout begins at $400000 for joint tax filers
Companies with residual dividend policies priorities paying capital expenditures out of earnings.
<h3>What is payout ratio?</h3>
The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.
For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.
Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.
To learn more about payout ratio refer to:
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Answer: Project X
Explanation:
The Payback period is the amount of time it would take for the cash inflows accruing from an investment to payoff the cost of the investment.
Project X has a constant cashflow of $24,000 for 3 years and a cost of $68,000 for the Payback period is;
= 68,000/24,000
= 2.83 years
Project Y has an uneven cash flow with a cost of $60,000. Payback is calculated as;
= Year before payback + Amount left to be paid/cashflow in year of payback
Year before payback = 4,000 + 26,000 + 26,000
= $56,000
This means that the third year is the year before payback.
60,000 - 56,000 = $4,000
Payback period = 3 + 4,000/20,000
= 3.2 years
Based on a Payback period of 3 years, only Project X should be chosen as it pays back in less than 3 years.
