Answer: $400,000
Explanation: Given the following :
Operating Income (EBIT) = $4,000,000
Weighted average cost of Capital (WACC) = 10% = 0.1
Operating capital = $20,000,000
Taxes = 40% = 0.4
Economic Value Added (EVA) is given by;
EBIT x (1-Tax) - (WACC x Operating capital)
$4,000,000 × (1-0.4) - (0.1 × 20,000,000)
$4,000,000 × (0.6) - (2,000,000)
$2400,000 - $2,000,000
=$400,000
Answer: Deficit; higher; a decrease
Explanation:
<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.
Answer:
Option A. $15,400
Explanation:
The net deduction allowed as an charitable contributions are as under:
$
1. ABC Cop. stock
Cost $6000
FMV <u>$22000</u> $16000
2. Personal Clothing Items
Cost $1000
FMV <u>$400 </u> <u> ($600) </u>
Net Deduction $15,400
The amount that qualifies as charitable contribution for the year is $15400.
Answer:
b. environmental issues
c. global economy
Explanation:
Changes in the environment, such as pollution and global warming, affect operations and profitabiity.
The global economic crisis slows down organizational performance.
Ill ask for help from another coworker- if there was no one else available to help them I would help the customer if I am in that field
i needed points
