Answer:
B. decrease
Explanation:
The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.
Answer:
Rest of question:
... equals marginal cost.
Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.
As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.
This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.
Answer:
The correct answer is (E) continued to pour money into the stock market in the belief that the American economy was
Explanation:
Inflation can affect cash flows to a greater or lesser extent, depending on their nature. Thus inflation could affect sales prices more, or costs. The entrepreneur generally fights inflation trying to reduce costs and maintain competitive prices, but he can not against generalized inflation in the economy, and consequently his cash flows could be, in real terms, increasingly lower, by the loss of the power to buy money. In this way, inflation encourages investments with rapid recovery and that require less capital investment.
The sustainable growth rate (sgr) is 8 percent.
<h3><u>
What is Sustainable growth rate?</u></h3>
- The highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as the sustainable growth rate (SGR).
- In other words, it is the rate at which the business may expand without borrowing money from other sources by using only its own internal earnings.
- The SGR aims to increase sales and revenue while reducing financial leverage.
A corporation can avoid financial trouble and excessive leverage by achieving the SGR. Get or compute the company's return on equity (ROE) first. By comparing net income to shareholders' equity, ROE assesses a company's profitability.
Know more about sustainable growth rate with the help of the given link:
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Answer:
$2,375
Explanation:
Calculation to determine what amount related to the insurance should be reported as a deferred income tax liability
Using this formula
Deferred income tax liability=Accrual-basis income statement* Tax rate
Let plug in the formula
Deferred income tax liability=$9,500*25%
Deferred income tax liability = $2,375
Therefore The amount that is related to the insurance that should be reported as a deferred income tax liability is $2,375
