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3 years ago

Economists include the word final in the definition of gdp because we ____________.

1 answer:

4 0

GDP - Gross domestic product is a measure if the final goods and services produced in their economy over a period of time. Economist use the word final in the definition of GDP because they are not counting unfinished products or services. An example often used to show a good that is not final is a car rental company. If Enterprise was sold a car from Ford for their rental car fleet, it is not a final good because it will be rented out to a customer. Enterprise is not the final consumer in the process.

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Assume the state of Alabama placed a tax on playing cards of 6 cents per pack. If the state generated $48600 in revenue, how man

Rasek [7]

Answer:

the number of packs of cards sold is 810,000 units

Explanation:

The computation of the number of packs of cards sold is shown below:

Tax revenue = tax per good × goods

$48,600 = 0.06 × Q

Q =$48,600 ÷ 0.06

Q = 810,000

hence, the number of packs of cards sold is 810,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0

2 years ago

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,400,000. Also, at year-

Ksenya-84 [330]

Answer:

The Sales will increase by $350,000 (2000,000 * 17.5%)

Explanation:

As we know that,

Self Supporting Growth Rate = Return on Equity * (1 - Payout Ratio) ...Eq1

Here

Payout ratio given is 50%

and

Return on Equity = 35% (Step 1)

By putting values in Eq1, we have:

Self Supporting Growth Rate = 35% * (1 - 50%)

Self Supporting Growth Rate = 17.5%

Which means that Sales will increase by $350,000 (2000,000 * 17.5%) which is 17.5%.

Step 1: Find Return on Equity

We know that:

Return on Equity = Net Income / Equity ..............Eq2

As we are not given value of Net Income we can not calculate the value of return on equity. But there is another way that we can calculate by simply multiplying and dividing by sales on Left hand side of the Eq2 equation.

Return on Equity = Net Income / Equity * Sales / Sales

By rearranging, we have:

Return on Equity = Net Income / Sales * Sales / Equity

Now here,

Net Income / Sales = Profit Margin

By putting this in the above equation, we have:

Return on Equity = Profit Margin * Sales / Equity

Here

Profit Margin is 7% given in the question.

Sales were $2,000,000

And

Equity is $400,000 (Step 2)

By putting values, we have:

Return on Equity = 7% * $2,000,000 / $400,000

Return on Equity = 35%

Step 2. Find Equity

Equity = Assets - Liabilities

Here,

Assets are worth $1,400,000

Liabilities are standing at $1,000,000 which includes only current liabilities because company doesn't have any long term borrowings

By putting the values, we have:

Equity = $1,400,000 - $1,000,000 = $400,000

Brother, don't forget to rate the answer.

5 0

3 years ago

Governor of central bank of Nigeria

Oduvanchick [21]

Answer:

Godwin Emefiele

Explanation:

Governor - Since 6/3/2014. Godwin Emefiele is the Governor of the Central Bank of Nigeria (CBN).

5 0

2 years ago

Being a first mover in a market is advantageous for a firm because: Group of answer choices it may have an opportunity to free r

anyanavicka [17]

Answer:

Being a first mover in a market is advantageous for a firm because:

it may gain advantage through proprietary technology.

Explanation:

First mover advantage is a concept used to call the advantage a certain business has by starting to profit from an industry or sector before anyone else. It provides the advantage of experience and learning. Therefore, they gain advantage through proprietary technology by developing it to increase the efficiency of their resources.

4 0

3 years ago

The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3

VLD [36.1K]

Answer:

a. ROE (r) = 13% = 0.13

EPS = $3.60

Expected dividend (D1) = 50% x $3.60 = $1.80

Plowback ratio (b) = 50% = 0.50

Cost of equity (ke) = 12% = 0.12

Growth rate = r x b

Growth rate = 0.13 x 0.50 = 0.065

Po= D1/Ke-g

Po = $1.80/0.12-0.065

Po = $1.80/0.055

Po = $32.73

P/E ratio = Current market price per share

Earnings per share

P/E ratio = $32.73

$3.60

P/E ratio = 9.09

b. ER(S) = Rf + β(Rm - Rf)

ER(S) = 5 + 1.2(13 - 5)

ER(S) = 5 + 9.6

ER(S) = 14.6%

Explanation:

In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.

In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.

8 0

3 years ago

Economists include the word final in the definition of gdp because we​ ____________.

Economists include the word final in the definition of gdp because we ____________.