Answer:
affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.
Explanation:
This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:
MV = PQ
- M = quantity of money
- V = velocity of money
- P = price level
- Q = quantity of goods
Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:
- the velocity of money has to be constant (AND IT IS NOT CONSTANT)
- real output is independent on money supply (NOT TRUE)
- causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)
Answer:
10.25%
Explanation:
Data provided in the question:
Long-term debt = 45%, after-tax cost = 7%
Preferred stock = 15%, after-tax cost = 10%
Common stock equity = 40%, after-tax cost = 14%
Now,
The weighted average cost of capital for this firm will be calculated as:
= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost
or
= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14
or
= 0.0315 + 0.015 + 0.056
= 0.1025
or
= 0.1025 × 100%
= 10.25%
The answer is <u>"self-serving bias".</u>
A self-serving bias is the normal habit for a man assuming praise for positive occasions or results, yet reprimanding outside elements for negative occasions. This can be influenced by age, culture, clinical conclusion, and the sky is the limit from there. It has a tendency to happen broadly crosswise over populaces.
Self-serving bias happens in every extraordinary sort of circumstances, crosswise over sexual orientations, ages, societies, and more.
Answer:
Statement of stockholders' equity
at the end of the year (December 31)
<u>Common Stock</u> <u>Retained Earning</u> <u>Total</u>
Opening Balance $12,000 $7,100 $19,100
Income for the year $7400 $7400
Dividend Paid ($2,100) ($2,100)
Common stock issuance <u> $6,900 </u> <u> </u> <u> $6900 </u>
End of the year Balance $18,900 $12,400 $31300
