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Alisiya [41]
3 years ago
14

Economic value added:a. is a dollar amount rather than a percentage.b. is both a dollar amount rather than a percentage and uses

a firm's weighted-average cost of capital.c. uses total assets in its computation and ignores current liabilities.d. cannot be negative.e. uses a firm's weighted-average cost of capital.
Business
1 answer:
Fantom [35]3 years ago
7 0

Answer:

The correct answer is letter "B": is both a dollar amount rather than a percentage and uses a firm's weighted-average cost of capital.

Explanation:

The Economic Value Added metric helps the shareholders of a business to determine how their capital is performing against other potential investments using the <em>weighted-average cost of capital </em>for that purpose. It is also a useful calculation for companies to decide on the most economically valuable project to be pursued.

The economic value added is calculated by subtracting the opportunity cost of capital from the earnings of the company. <em>The result is given in dollar amounts.</em>

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In the 1990s politicians in Washington D.C. were looking for ways to balance the budget. Former Federal Reserve Chairman Alan Gr
Hitman42 [59]

Answer:

Explanation:

If the Boskin Commission's estimate was right and consumer price index overstated inflation by 1.1% every year, this is what we can derive about REAL GDP PER CAPITA and GENERAL LIVING STANDARDS IN THE UNITED STATES:

(A) Real Gross Domestic Product per Capita is the total (gross) production per head or per person (per capita) within (domestic) an economy; after accounting or adjusting for inflation. Before adjusting for inflation, we have the Nominal GDP. So the term "real" shows that the value has accounted for inflation. If inflation is positive in the economy, then Real GDP figure will be less than Nominal GDP figure. I hope you understand this background information.

So if consumer price index is overstating inflation, real GDP per capita will be higher than it is perceived/calculated to be, in those years

(B) The general standard of living (which is affected by consumer price index) would also be higher than perceived or calculated.

Note here that the 'general' standard of living is a measure that sums up living standard 'per capita'.

4 0
3 years ago
Which of the following statements about the two alternative methods that may be used when preparing the statement of cash flows
Kipish [7]

Answer:

The following records won't be required in drawing up a cash flow statement:

a. Income statement (True)

b. Balance sheet (True)

c. Prospectus (False)

d. Financial statement notes (True)

e. Company news releases (False)

f. Statement of cash flows (True)

g. Stock price information and analysis (False)

h. Statement of shareholders' equity (True)

i. Management discussion and analysis of financial performance (False)

Explanation:

A cash flow statement is an element of the financial statement which helps investors identify the liquidity of the business.

It reveals in great details the sources and uses of the cash resources of the business, and gives true indication to the internal workings of management in wealth creation for the shareholders

Since its only concerned about the cash uses and sourcing, it means not all financial record of the business will be essential in drawing up a statement of cash flow.

8 0
3 years ago
When a swimming park owner charges $4.00 for admission, there is an average attendance of 100 people. For every $0.20 increase i
maks197457 [2]

Answer:

$490

Explanation:

Let xR be the revenue function

xR = (4 + 0.2(x))(100 - 2x) = 400 + 12x - 2x²/5

Maximum revenue occurs when xR = 0:

xR = 12 - 4x/5 = 0

x = 15

Admission price = 4 + (0.2*15) = 4 + 3 = $7

Max revenue = $7 * (100 - (15*2) = 7 *70  = $490

7 0
3 years ago
Everyone in the organization has a stake in how information is processed and managed.
Korvikt [17]
This is true. Hope I could help!
7 0
3 years ago
Imagine that you have received an overdraft notice on your checking account. Which steps should you take? Sort these options int
attashe74 [19]

Answer:

"Actions To Take"

Check my records first

Contact the bank right away

Handle the matter quickly

"Actions To Avoid"

Set the note aside and wait until later

6 0
2 years ago
Read 2 more answers
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