Answer:
Round 2 adds =$800
Round 3 adds =$640
Explanation:
Marginal propensity to consume is the aggregate increase in spending by a consumer for each additional $ they earn. So a Marginal Propensity to consume of 0.8 means that each consumer in the economy consumes 80% of any additional dollars they earn, while they save 20% which is also the marginal propensity to save that is 0.2
So First round adds $1000
Second round adds $1000 * 0.8 = $800 as people use 80% of $1000
Third round adds $800 * 0.8 =$640 as people use 80% of $800
while the remaining is saved.
Hope that helps.
Answer:
Option D is correct.
Explanation:
Every single offered proclamation are right is the response in light of the fact that under the Double-declining-balance depreciation since it has more devaluation costs when contrasted with different strategies for depreciation.It isn't taking the leftover worth while figuring the deterioration it considers at end year depreciation is determined by taking the distinction of a year ago equalization and rescue value.Under this strategy deterioration is determined on balance measure of depreciation or book value of assets.
Answer:
Building with fair value of $150,000
Explanation :
In the consolidation work paper elimination, we eliminate the Equity or Net Identifiable assets that exist in Star Company at the Acquisition Date.
The Building with fair value of $150,000 was the only balance sheet item existing thus this is ultimately the Net Identifiable Assets that would be eliminated.
Answer:
c. $140,000
Explanation:
Based on the information given we were told that zero-interest-bearing note with a face value of the amount of $200,000 was received from another company in exchange for property that has a fair value of the amount of $140,000 which means that the fair value amount of $140,000 will be the net value of notes receivable
Therefore the net value of notes receivable will be $140,000
Answer:
6.38%
Explanation:
The computation of the stock expected constant growth rate is shown below:
But before that first we have to find out the dividend for each year by considering the growth rate
Dividend for year 1 = $1 × (1 + 0.30) = $1.30
Dividend for year 2 = $1 × (1 + 0.30)^2 = $1.69
Dividend for year 3 = $1 × (1 + 0.30)^3 = $2.197
Dividend for year 4 = $1 × (1 + 0.30)^4 = $2.8561
and, the selling price of the stock is $40
So,
$1.30 × 0.8929 + $1.69 × 0.7972 + $2.197 × 0.7118 + $2.8561 × 0.6355) + [$2.8561 × (1 +X%) ÷ 12% - X%)] = $40
After solving this
The X is 6.38%
And, the discount rate is come from
= 1 ÷ (1 + interest rate)^number of years
Like 0.8929 is come from
= 1 ÷ (1 + 0.12)^1