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3 years ago

. Economic stability is a situation in which the economy experiences constant and low . True or False

2 answers:

6 0

This is true statement. Economic stability is a situation in which the economy experiences constant growth and low inflation.

Sever21 [200]3 years ago

4 0

Answer: True. Economists view the term Economic stability as a state of constant economic growth along with low inflation.

Explanation: When economy of any country is growing positively it ultimately reduces the inflation in a country. Thus we can say that they are inversely proportional to each other, means when you see increasing inflation, it indicates that the economic growth is either negative or stagnated however, when inflation is decreasing it indicates that the economy of a country is growing positively.

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Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg

nordsb [41]

Answer:

The correct answer is $12,400.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the pension expense by using following formula:

Pension expense = Interest cost + Service cost - Expected return on plan assets.

Where, Interest cost = $6,400

service cost = $17,000

Expected return on plan assets = $11,000

So, by putting the value, we get

Pension expense = $6,400 + $17,000 - $11,000 = $12,400

Hence, Journal entry for the following are as follows:

Pension Expense A/c Dr. $12,400

To Cash $12,400

8 0

3 years ago

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20.

Umnica [9.8K]

Answer:

P0 = $45.299899 rounded off to $45.30

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on

g is the constant growth rate in dividends

r is the discount rate or required rate of return

P0 = 22 / (1+0.19) + 15 / (1+0.19)^2 + 6 / (1+0.19)^3 + 3.2 / (1+0.19)^4 +

[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]

P0 = $45.299899 rounded off to $45.30

Read more on Brainly.com - brainly.com/question/22666091#readmore

7 0

3 years ago

You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri

murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

Initial investment = -$24.50
Cash flow 1 = $1.25 (dividend year 1)
Cash flow 2 = $1.35 (dividend year 2)
Cash flow 3 = $1.45 (dividend year 3)
Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%

where

value 1 = -24.50
value 2 = 1.25
value 3 = 1.35
value 4 = 1.45
value 5 = 56.55

7 0

3 years ago

An unintended side effect that benefits or harms a third party not involved in the activity is:

Sauron [17]

The answer is : b. An externality

The example of an Externality is air pollution from Car emission

The air pollution is not technically covered and intended by the car manufacturing company , but it harm a third party ( civilians) who do not involved in the car production

8 0

3 years ago

Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have

Vaselesa [24]

Answer:

A) Proposal A= 6875 units

B) Proposal B= 6818 units

Explanation:

Giving the following information:

Two vendors have presented proposals.

Proposal A:

Fixed costs= $55000.

Variable cost= $ 14.00.

Proposal B:

Fixed cost= $75000.

Variable cost= $11.00

The revenue generated by each unit is $ 22.00

Break-even point= fixed costs/contribution margin

A) Proposal A= 55000/(22-14)= 6875 units

B) Proposal B= 75000/(22-11)= 6818 units

3 0

3 years ago