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3 years ago

Study Guide Chapter 1

Business

1 answer:

salantis [7]3 years ago

5 0

Answer:

The statement is true. Executive orders from the president and the laws that are passed by the Congress can be challenged before they are agreed and passed. A decision given by the supreme Court is considered final.

However, constitutional amendments can override the supreme court decisions.

Explanation:

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What is the discount rate?

IrinaVladis [17]

Answer:

A. The discount rate.

Explanation:

6 0

2 years ago

Potential GDP is:

Eva8 [605]

Answer:

b. maximum amount of output that can be produced given the labor force, capital stock, and technology.

Explanation:

GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically

On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate

Therefore option b is correct

7 0

3 years ago

Gilmore, Inc., just paid a dividend of $3.05 per share on its stock. The dividends are expected to grow at a constant rate of 5.

Alona [7]

Answer:

intrinsic value: 49.50

value in four years: $ 61.32

value in fourteen years: $ 104.75

Explanation:

we solve using the gordon model:

$\frac{divends_1}{return-growth} = Intrinsic \: Value$

D0 = 3.05

D1 = 3.05 x ( 1 + 0.055) = 3.21775‬

$\frac{3.21775}{0.12 - 0.055} = Intrinsic \: Value$

Value: 49.50384615

<u>In the future will grow at the same rate as dividends:</u>

price in four years: 49.50 x (1.055)^4 = 61.32182021

price in fourteen years: 49.50 x (1.055)^14 = 104.7465274

7 0

2 years ago

On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for

Mars2501 [29]

Answer:

1. $3,799,988

2. $3,419,989

Explanation:

1. Semiannual lease payment = $468,683

Total semiannual payments = 5*2 = 10

Incremental borrowing rate = 10%, 5% semiannual

Present value of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 10 periods at 5%

= $468,683 * 8.1078 = $3,799,988.0274 ≈ $3,799,988

2. Semiannual payment on 30.06.2021 = $468,683

Pretax amount of liability on 30.06.2021 = ($ 3,799,988.0274 - $468,683) = $3,331,305.0274

Interest expense for 31.12.2021 = $3,331,305.0274 * 5% = $166,565.25137

Semiannual lease payment on 31.12.2021 = $468,683

Pre tax amount for liability December 31, 2021 = $3,331,305.0274 + $166,565.25137 - $468,683 = $3,029,187.2788

Depreciation on right to use assets for 2021 = ($3,799,988.0274 ÷ 5) * (5/10)= $379,998.80274

Pre tax amount of right to use asset to be reported for 2021 = $3,799,988.0274 - $379,998.80274 = $3,419,989.2247 ≈ $3,419,989

5 0

3 years ago

John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate

Mumz [18]

Answer:

Market value

Explanation:

The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.

8 0

3 years ago