Answer:
Line organization model
Explanation:
Based on the information provided within the question it seems that Party Pros Inc. is using a Line organization model. This is an organizational structure in which power flows from the top to the bottom, meaning that the person at the top is the owner and the individuals in each level of the hierarchy answer to those in the upper levels, all of which are trying to accomplish the same organizational goals. Such as is being described in this situation.
The answer to this question is the term net income. A net income is the remaining money after deductions or expenses have been taken from the gross income. Net income is also known as net profit. Net income also states and calculates the total revenue that exceeds after all operational expenses and taxes been deducted.
Answer:
Under CAPM:
Re = Rf + Beta(Rm - Rf)
Rf = 5%
Rm - Rf = 6%
Beta = 1.25
Re = 5% + (1.25 x 6%) = 12.5%
Under dividend discount model:
Re = (Div₁ / P₀) + g
Div₁ = $1.20
P₀ = $35
g = 8%
Re = ($1.20 / $35) + 8% = 11.43%
Under bond yield plus risk premium approach:
Re = Pre-tax cost of debt + risk premium over its own debt
Pre-tax cost of debt = 7%
risk premium over its own debt = 4%
Re = 7% + 4% = 11%
The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.
Answer:
b. a one-tail test should be utilized.
Explanation:
It can be said that the best way for the economist to make this determination would be to use a one-tail test. This is a statistical test in which the critical area of a distribution is one-sided, making it either exceed or fall short of a certain value, but not both as seen in the graph below. Which in this case, the certain value would be $50,000 and the information will be on either side. Thus showing the economist if the mean family income truly exceeds the $50,000
Answer:
c. consumption falls and investment rises
Explanation:
- As there is a net drop in the net exports of the economy to near zero and the saving rises then the consumption will fall and there will be a rose in the investments.
- It also is called as a closed economy and this also affects the net imports that remain in a negative number. And is direct contracts to the ope economy were the trade takes place to form the marginal exchange.
