The balanced budget multiplier applies when a $50 billion increase in government expenditure is financed by a $50 billion ______
1 answer:
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Answer:
Increase in income from Operations = $72,000
Explanation:
Current cost of purchasing the inventory = $5 per unit.
Purchase price if bought from Division 6 = $3.20
Net benefit on each unit = $5 - $3.20 = $1.80
Number of units purchased = 40,000
Net savings in Expense of purchase of raw material, which will result in increase in income from operation's by = 40,000 $1.80
= $72,000.00
Answer:
sustainable growth rate for Crash Davis Driving School: 9.044%
Explanation:
0.133 x (1-0.32) = 0.09044
The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:
Assuming the company thakes no debt for the period then:
Assets = liab + equity
Assets = 0 + increase in RE
Assets = + increase in RE
Thus, this is the rate at which assets grows without taking new debt