Answer:
When the government has a strong say in what businesses do, two things may happen:
- businesses can become corrupt and inefficient,
- or the businesses can develop closer cooperation between them and the government that helps them become more efficient.
The later applies to Japan, but also to countries like Chile. Chilean government has signed free trade agreements with virtually every single country in the world, granting Chilean companies huge international markets.
While in the US, even now with President Trump, the government has a relatively small influence in the private sector (except for defense contractors). I believe American corporations have a larger influence on the government, than the influence the government has on them.
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase from the 30% due to the 30% increase in sales. This is because the Cost of Goods Sold remained constant.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because these also increased the operating and administrative expense, even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales express the ratio of the net income to the sales revenue. The net earnings are the result of deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Answer:
1.97% and 2.01%
Explanation:
The computation of the effective annual rate is shown below:-
Effective annual rate = (1 + Annual percentage rate ÷ n)^n -1
For CD 1
= (1 + 0.0195 ÷ 12)^12 - 1
= (1 + 0.001625
)^12 - 1
= (1.001625
)^12 - 1
= 1.97%
For CD 2
= (1 + 0.02 ÷ 2)^2 - 1
= (1 + 0.01
)^2 - 1
= (1.01)^2 - 1
= 2.01%
CD 2 will recommend to the grandmother
Answer:
a. 12% per year
Explanation:
Effective interest rate
r = (1 + i/n)^n - 1
r = effective interest rate
i = simple interest rate compounded monthly
n = number of compound intervals
12.68% = ((1+i/12)^12)-1)
1+0.1268 = ((1+i/12)^12)
1.1268^(1/12) =1+i/12
1.010 = 1+i/12
1.010-1 = i/12
0.010 x 12 = i
i = 0.12 = 12%
