Answer:
Explanation:
Contribution : Contribution tells the availability of funds. It is computed by taking a difference of sales and variable cost.
The equation to compute net income is shown below:
Sales - Variable cost = Contribution ;
Contribution - Fixed expense = Net income
For computing the foretasted contribution for 2018, the following information is need to be considered which is shown below.
1. As for variable cost, 50% should be recognized i.e 627,888 × 50% = $313,944
2. The fixed cost is increased by $156,000. So the revised fixed cost = 212,000 + $156,000 = $368,000
3. Other things remain same.
The calculation attachment is given below:
Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.
Answer:
True
Explanation:
Dependent variables are variables which are altered by the changes to the independent factors or variables.
The following are instances of dependent and independent variables:
Dependent Variable (DV): Profit, Product Quality, Staff Attrition during a recession.
Profit (DV) depends on sales, expenses, the economy, the proficiency of the sales staff, the quality of the product.
The Quality of the Product (DV) depends on the production process, product design, quality of raw materials etc
So, many of the factors highlighted above, which affect the dependent variables are called Independent variable.
Profit, for instance, can be forecasted or changed IF changes are made to sales.
It is possible to measure the quality of a product or service. It can also be altered by increasing or decreasing the quality of raw material input.
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Answer:
P0 = $9.04279 rounded off to $9.04
Option c is the correct answer
Explanation:
Using the the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,
P0 = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3
Where,
- r is the required rate of return
P0 = 4 / (1+0.156) + 4 / (1+0.156)^2 + 4 / (1+0.156)^3
P0 = $9.04279 rounded off to $9.04
