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3 years ago

Give two reasons why value of norminal GDP would increase

1 answer:

7 0

1. Positive economic growth means that the value of all goods and services produced in the economy increase by an unknown amount

2. growth in the amount of goods and services produced

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Production and sales estimates for April are as follows: Estimated inventory (units), April 19,000 Desired inventory (units), Ap

telo118 [61]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Production and sales estimates for April are as follows: Estimated inventory (units), April 19,000 Desired inventory (units), April 30 18,000 Expected sales volume (units): Area 3,000 Area 4,750 Area 4,250

Production:

Sales= 12,000

Ending inventory= 18,000

Beginning inventory= (19,000)

Total= 11,000 units

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4 years ago

Which one of the following represents the minimum rate of return a firm must earn on its assets if it is to maintain the current

FinnZ [79.3K]

Answer:

B. Weighted average cost of capital

Explanation:

The Weighted average cost of capital is abbreviated as the WACC. It is the weighted average of cost of common equity, cost of preferred equity and aftertax cost of debt. For a company to have a breakeven in returns, they need to earn a minimum rate of return on its assets which is equivalent to the weighted average cost of capital(WACC) making choice B correct.

5 0

3 years ago

Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is

Gnesinka [82]

Answer:

Missing <em>"b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"</em>

a. Current value of the company = EBIT*(1-t) / Ke

Current value of the company = $23,300*(1-0.25) / 0.143

Current value of the company = $23,300*0.75 / 0.143

Current value of the company = $17,475 / 0.143

Current value of the company = $122202.7972027972

Current value of the company = $122,202.80

So, the current value of the company is $122,202.80.

bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)

Value of the company = $122,202.80 + $15,275.35

Value of the company = $137,478.15

bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)

Value of the company = $122,202.80 + $30,550.7

Value of the company = $152,753.5

7 0

3 years ago

Why do we use trade barriers? What is the purpose?

vladimir1956 [14]

Reasons For Using Trade Barriers. As for protecting domestic producers, some countries use trade barriers is to protect immature domestic producers and industries that cannot effectively compete with foreign products. Trade barriers makes imported goods and products less attractive than locally produced goods.

4 0

3 years ago

Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1

larisa [96]

Answer:

Company Save $37000 by Buying

Explanation:

given data

make component part = 100 units

Direct Materials = $122000

Direct Labor = 34000

Variable Overhead = 55000

Fixed Overhead = 30000

purchase the component = $200000

fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make = $122000 + 34000 + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs ............2

put here value we get

total cost for buying = $200000 + $4000

total cost for buying = $204000

we can say Company Save = $241000 - $204000 = $37000 by Buying

5 0

3 years ago

Give two reasons why value of norminal GDP would increase ​

Give two reasons why value of norminal GDP would increase