Answer:
The correct answer is: Proportion of any change in income that is spent on consumption.
Explanation:
In economics, this term is used to refer to the measurement made in order to determine consumption when the rent is increased by one unit. This measurement is nothing more than a mathematical relationship to calculate how people invest in consumption or save the income that is increased.
Answer:
There is no correct answer is these options. But the correct answer is $113.41
Explanation:
The formula to solve this is:
Po = D1/r - g
Po is the Current price of the common stock
D1 is the future dividend payment
r is the rate of return
g is the growth rate.
This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;
D1(Dividend in year 1) is $3.15( $2.42 x 1.3)
D2(Dividend in year 2) is $3.78(3.15 x 1.2)
D3(Dividend in year 3) is $4.15($3.78 x 1.1)
D in subsequent years is $4.36(4.15 x 1.05)
P3(price of stock in year 3) = $4.36/0.083 - 0.05
=$132.12
Now the stock's current market value is
$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3
The price of the stock is $113.41
Answer:
a. Debit to variable overhead efficiency variance
d. Credit to variable overhead spending varian
Explanation:
Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.
Therefore the journal entry will include a:
a. Debit to variable overhead efficiency variance
d. Credit to variable overhead spending Variance
Answer: A
Preferred share dividends are distributions of profits and not interest payments. Thus not tax-deductible.
Answer:
The cost recorded for the equipment=$229,550
Explanation:
The total recorded cost of the automatic equipment has to include the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;
T=P+A
where;
T=total cost
P=purchase cost/invoice cost
A=additional costs(electrical work cost+delivery cost+sales tax+repair cost)
In our case;
T=unknown
P=$190,000
A=(20,000+4,000+13,700+1,850)=$39,550
replacing;
T=190,000+39,550=229,550
The total cost=$229,550
The cost recorded for the equipment=$229,550