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2 years ago

In economics, why must consumers, businesses, and governments make choices?

1 answer:

4 0

Due to scarcity. There exist unlimited wants but only scarce amount of resources to meet those wants so items must be allocated through a system of prices or through exchange.

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"The Free-Float Company, a company in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the

Strike441 [17]

Answer:

Equity Beta = 1.1413

Explanation:

The formula to find the asset beta is

Asset Beta = Equity Beta/(1+(1-tax rate)(Debt/Equity))

We will put the values given in the question in this formula

Asset Beta = 0.8

Tax rate = 0.36

Debt = 0.40

Equity = 0.60

0.8=Equity Beta/(1+(0.64)(0.40/0.60)

0.8=Equity Beta/1+0.4266

0.8=Equity Beta/1.4266

1.4266*0.8= Equity Beta

Equity Beta = 1.1413

6 0

3 years ago

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o

gladu [14]

Answer:

The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1

If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.

16x+ 6(1-x)=10

16x+6-6x=10

10x=4

x=4/10

x= 0.4

This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %

(0.4*16)+(0.6*6)= Rate of return

Rate of return=10%

10% of 1000 = 100

100+1000=$1100

Explanation:

7 0

3 years ago

Flip's Pizzeria Inc. has the following financial items for the current year: Advertising Expenses $50,000 Cost of Goods Sold $66

Allisa [31]

Answer:

Flip's taxable income for the current year is $2,10,000.

Explanation:

Given information:

Advertising Expenses = $50,000

Cost of Goods Sold = $660,000

Other Operating Expenses = $390,000

Sales = $1,830,000

Wages and Salaries = $520,000

Capital Gain = $15,000

The formula for taxable income is

Taxable income for corporation = Gross Sales - cost of goods sold - operating expense - Interest expense - Tax deduction/ credit

Where,

Operating expense = Advertising Expenses + Wages and Salaries + Other Operating Expenses

Using this formula we get

$\text{Taxable income for corporation}=1830000-660000-(390000+520000+50000)$

$\text{Taxable income for corporation}=210000$

Therefore, Flip's taxable income for the current year is $2,10,000.

7 0

3 years ago

A storm on one of the planets listed in the table lasted for 132 hours, or 5.5 of the planet's days. The equation 5.5h = 132 giv

padilas [110]

Answer:

The planet is Earth

Explanation:

1. Equation (given):

5.5h = 132

2. Solve by applying division property of equalities: divide both sides by 5.5

h = 132/5.5
h = 24.0

The equation gives the length in hours of a day, then the solution h = 24.0 means that the length of the day on the planet is 24.0 horas.

The table is:

Length of Day

Planet Length of Day (hours)

Earth 24.0

Mars 24.7

Jupiter 9.9

Therefore, the solution h = 24.0 shows that the planet is Earth.

5 0

3 years ago

Consider the following account balances of Evan McGruder, Inc., as of December 31, Year 3:

Vlad [161]

Answer:

Explanation:

In the classified balance sheet, we summarize the asset and liabilities into various types

Like assets are divided into fixed assets, current assets, and intangible assets.

Likewise, liabilities are also divided into current liabilities, long term liabilities

In every balance sheet, the accounting equation is used that means

Total assets = Total liabilities + Shareholder equity

The preparation of the classified balance sheet for Evan McGruder, Inc. on June 30, Year 3 is presented in the spreadsheet. Kindly find the attachment below:

6 0

2 years ago