Answer:
Total Asset Turnover: 2.2857
Explanation:
<u>Total Assets</u>
Begininng Balance 2,450,000
Ending Balance 2,800,000
Period activity 350,000
<u>Sales:</u> 6,000,000
<em><u>Total Asset Turnover</u></em>: <u> </u><em><u> Sales </u></em>
<em> Average Total Assets</em>
<u> 6,000,000 </u>
( 2,450,000 + 2,800,000 ) / 2
=
<u>6,000,000</u>
2,625,000
=
<u>2.2857</u>
Answer:
6%
Explanation:
As per given data
Quarter Real GDP ($billions) Long-Run Trend of Real GDP ($billions)
1 4,000 4,000
2 4,160 4,120
3 4,326 4,244
4 4,413 4,371
5 4,501 4,502
6 4,591 4,637
7 4,499 4,776
8 4,409 4,919
9 4,673 5,067
10 4,954 5,219
11 5,252 5,376
12 5,376 5,537
Growth of GDP = (DGP of Current/recent period - GDP of Prior period) / DGP of Prior period
In this question prior period is quarter 10 and current /recent period is quarter 11.
So, formula will be
Growth of GDP = (DGP of quarter 11 - GDP of quarter 10) / GDP of quarter 10
As we need to calculate the real GDP growth the formula will be as follow
Growth of real GDP = (Real DGP of quarter 11 - Real GDP of quarter 10) / Real GDP of quarter 10
Growth of real GDP = ($5,252 billion - $4,954 billion) / $4,954 billion
Growth of real GDP = $298 billion / $4,954 billion
Growth of real GDP = 6.02% = 6%
Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) =
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
Answer:
$69,000
Explanation:
The computation of the operating income would be shown below:
= Buying cost - making cost
where,
Buying cost equals to
= 60,000 × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × avoid percentage
= $90,000 + $70,000 × 30%
= $90,000 + $21,000
= $111,000
Now put these values to the above formula
So, the value would equal to
= $180,000 - $111,000
= $69,000
Answer:
![STC = 20K + 25L = 20*5 + 25*[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%20STC%20%3D%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%2A%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)
Explanation:
We are given:
K units of capital and L units of labor.
•Each unit of capital cost = 20
• Each unit of labor cost =25
• Level K is fixed at 5 units
We are told production function Q = K√L
Using the production functions and the values given, we can get that Q=5√L.
To find Q, the amount of labor will be given as:

Therefore, the Short run total cost function (STC) will be:
![20K + 25L = 20*5 + 25[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)