Answer:
The correct answer is D
Explanation:
Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.
So, the marginal principle of retained earnings would be when it will provide the higher rate of return than the shareholders who could achieve after paying taxes on the dividends.
Answer: True
Explanation:
Fiscal policy refers to the government suing taxation and spending policies to influence the economy of a country. If the government wants to improve production, they reduce taxes and increase spending and if they want to reduce production, they increase taxes and reduce spending.
Fiscal policy proponents believe that the government is right to use fiscal policy to correct the market because its effect is more direct. John Maynard Keynes was one of the most famous proponent for Fiscal policy.
Answer:
13 years
Explanation:
Note that, if we add the annual interest rate of 7.9% to $8000 [(0.079*8000)+8000] we get a total value of $8632. We perform random division of the 8632 with 11 12, 13 years we note that at 13 years the total annual payment is lowest.
Such that 8632/13 years= $664 lower than paying $750.
If the cpi is 200 in year 1980 and 300 today, then $600 in 1980 is equivalent to $900 today.
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about: 62.4%.
<h3>What does it mean if operating income increases?</h3>
- An organization's management is creating more revenue while managing expenses, production costs, and overhead, which is why a company generating an increasing amount of operating income is seen favorably.
- Better managerial controls, more effective resource usage, better pricing, and more successful marketing can all increase operating profit. The operational margin can be defined as the ratio of a company's profits from its main business to its total revenues.
- It could be reasonable to say that the only good operating margin is one that is positive and increasing over time because higher operating margins are generally preferable to lower operating margins. One of the most crucial accounting measures of operational efficiency is operating margin, which is universally accepted.
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about:
Degree of operating leverage = % Change in operating income/ % Change in Sales
4.8 = % Change in operating income/ 13
% Change in operating income = 62.4%
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about: 62.4%.
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