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3 years ago

In a housing market, under what conditions would you likely see and increase in developer construction? Why?

Business

1 answer:

madreJ [45]3 years ago

4 0

Answer:

<u>Increase in demand, then increase in prices</u>

Explanation:

Note that the law of demand and supply also applies to the housing market.

Thus when developers notice increase in the demand for houses; leading to an increase in prices for houses, this necessitates the increase in developer construction so as<em> to make more profit.</em>

Remember, this developers likely had undeveloped land they bought for some time, and so its an opportunity to reap more investments.

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g The current ratio is a.a solvency measure that indicates the margin of safety for bondholders. b.used to evaluate a company's

adoni [48]

Answer:

b.used to evaluate a company's liquidity and short-term debt paying ability.

Explanation:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.

A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.

3 0

3 years ago

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders requi

Galina-37 [17]

Answer:

Return n investment = 11.67%

Explanation:

Return on Investment is the proportion investment that is earned as operating income.

For the division, the return on investment would be the proportion of te investment in assets that is earned as net income.

This would be determined as follows;

Return n investment = (Net income÷ Operating assets) × 100

Return n investment = (175,000 ÷ 1,500,000) × 100= 11.67%

Return n investment = 11.67%

3 0

3 years ago

A company had beginning assets and liabilities were Rs. 100,000 and Rs. 50,000 respectively.

elena-14-01-66 [18.8K]

Answer: Rs. 120,000

Explanation:

At the end of the year, both assets and liabilities had doubled. New asset and liability figures are therefore:

Assets = Rs. 200,000

Liabilities = Rs. 100,000

Net income is part of equity and as there is no equity, net income must be the entire equity.

Assets = Equity + Liabilities

200,000 = Equity + 100,000

Equity = 200,000 - 100,000

= Rs. 100,000

From this Net income, dividends were distributed to the tune of Rs. 20,000. This should be added back to see the full figure.

= 100,000 + 20,000

= Rs. 120,000

7 0

3 years ago

Mr. C made the following gifts: $12,000 to a university to pay tuition costs for his niece. An undeveloped tract of land to his

Nonamiya [84]

Answer:

$10,000

Explanation:

Gifts are only taxed when their fair market value is higher than $15,000. Any gifts made to your spouse are not taxable. Gift taxes are calculated on a per person base, as long as they do not exceed the lifetime exemption (which is $11.58 million).

The tuition costs of her niece are not taxable since they are less than $12,000. The stocks given to his wife are not taxable either. The only taxable gift is the land given to his sister which had a FMV of $25,000. The taxable amount = $25,000 - $15,000 = $10,000

5 0

3 years ago

Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 perce

Dimas [21]

Answer:

Machine A; because it will save the company about $13,406 a year

Explanation:

The computation is shown below:

Equate Annual Cost = PV of Cash Outflow ÷ PVAF (r%, n)

For Machine A:

Year CF PVF at 14.6% Disc CF

0 $3,18,000.00 1.0000 $3,18,000.00

1 $ 8,700.00 0.8726 $7,591.62

2 $8,700.00 0.7614 $6,624.45

3 $ 8,700.00 0.6644 $ 5,780.50

PV of Cash Outflow $3,37,996.58

PVAF(14.6%,3) 2.2985

PV of Cash Outflow $1,47,053.69

For Machine B:

Year CF PVF at 14.6% Disc CF

0 $2,47,000.00 1.0000 $2,47,000.00

1 $9,300.00 0.8726 $8,115.18

2 $9,300.00 0.7614 $7,081.31

PV of Cash Outflow $2,62,196.49

PVAF(14.6%,2) 1.6340

PV of Cash Outflow $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0

2 years ago