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3 years ago

Buying power of dollar through the years

1 answer:

5 0

Purchasing Power of Money in the United States ... Why not current year? ... Power Calculator compares the relative value of a past amount of dollars to a present ... Please let us know if and how this discussion has assisted you in using our ...

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What is a financial institution’s decision to honor your checks even when you have exceeded your balance.

Anastaziya [24]

Overdraft Protection is a financial institution's decision to honor your checks even when you have exceeded your balance. A fee is charged to you for every overdraft.

6 0

3 years ago

Data concerning Pellegren Corporation's single product appear below: Fixed expenses are $531,000 per month. The company is curre

GrogVix [38]

Answer:

a. decrease of $18,000

Explanation:

The calculation of overall effect on the company's monthly net operating income is shown below:-

Particulars Current Proposed

Sales $800,000 $837,000

($200 × 4,000) (200 - 14) × (4,000 + 500)

Variable

expenses $160,000 $180,000

(40 × 4,000) (40 × (4,000 + 500))

Contribution

margin $640,000 $657,000

Fixed

expenses $531,000 $566,000

($531,000 + 350,00)

Net operating

income $109,000 $91,000

Decrease in net operating income is

= $109,000 - $91000

= $18,000

6 0

3 years ago

In a free market setting where quantity supplied is 40 units and quantity demanded is 50 units, price will:

zvonat [6]

Answer: Increase

Explanation:

According to the Law of Supply and Demand, If the demand for the good is higher than the supply, the price will be higher to reflect the relative scarcity and if the demand is lower than supply, the price will be lower to reflect the relative excess.

In this case the quantity demanded is higher than the quantity supplied so the price will have to increase to reflect the relative scarcity of the good.

4 0

2 years ago

As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, growt

rjkz [21]

Answer:

Sustainable growth rate = 0.67148%

The firm maintains a constant ratio of liabilities to equity.

Explanation:

Sustainable growth rate = ROE *Plow back Ratio / (1-ROE * Plow back Ratio)

When ROE = Net Income / Total Assets

= $2,000,000/$300,000,000

= 0.00667

Plow back Ratio = 1 - (Dividend / Net Income)

= 1 - ($180,000/$2,000,000)

= 1 - 0.09

=0.91

Sustainable growth rate = ROE * Plow back Ratio / (1-ROE * Plow back Ratio)

= 0.00667 * 0.91 / (1 - 0.00667 * 0.91)

= 0.0060697 / 0.9039303

=0.0067148

= 0.67148%

Therefore, the sustainable growth rate is 0.67148%

The firm maintains a constant ratio of liabilities to equity is the correct assumption for the sustainable growth model.

3 0

3 years ago

If individuals pursue their own interests when participating in the markets, per Adam Smith, those individuals are being guided

docker41 [41]

Answer:

Self Interest & Invisible Hand of Laissez Faire Policy

Explanation:

Adam Smith Laissez Faire Policy - suggests that free markets are the best approach for welfare maximisation of a society, based on self interest guiding best decisions by individuals, and individual wealth & welfare maximisation implies society wealth & welfare maximisation.

The Invisible Hand of free markets corrects all the discrepancies (if any), re-guides self interest forming the basis of over all social interest. Government intervention is unnecessary & distortionary as per the theory

7 0

3 years ago