Banks lend money from saving accounts to people who need loans
The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity
Answer:
Changes income, which changes consumption, which further changes income
Explanation:
Fiscal policy is an effective technique to control savings, income and consumptions because of its multiplier effect. The first effect of fiscal policy is that it changes income and that change in income leads to a change in consumption because of purchasing power; likewise, due to the change in consumption income changes. So, fiscal policy has a multiplier effect.
Answer:
D. Product Invention
Explanation:
KFC added many items in the menu list when they opened their restaurants at China. By doing this KFC tries to incorporate the local cuisine of Chinese foods into their menu.
In China, KFC invented a new dish and named it the "Dragon Twister". In this dish, it contains a chicken wrap with Peking duck sauce on it. It highly resembles the local food of China.
Thus KFC tries to promote and do marketing of its product in China by inventing new dishes which is similar to the local Chinese food and adding it to the menu list of KFC.
By this, Chinese people will be attracted towards KFC and will come to try their newly invented "Dragon Twister".
Thus, the answer is D. Product Invention.
Answer:
The internal growth rate is 4.36%
Explanation:
net income = 8.3%*386,400
= $32,071.20
net working capital = current assets – current liabilities
current assets – 37200 = 16700
= $53,900
total assets = current assets + net fixed assets
= 53,900 + 391,500
= 445,400
Then:
ROA = 53,900/445400
= 0.072005
b = 1 - 48% = 0.52
internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)
= 0.041763/0.958237
= 4.36%
Therefore, The internal growth rate is 4.36%