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2 years ago

Which of the following would occur if Congress voted to decrease spending?

1 answer:

5 0

The answer is : Price Level would increase

If the Congress voted to decrease spending, the Gross Domestic Product in that country would decrease,

IF GDP increase, the output will decrease which will eventually lead to increase in unemployment and an increase to price level ( the less the products, the higher the price would be)

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Little Book LTD has total assets of $860 000. There are 75

malfutka [58]

a)Little book LTD earning per share is $1.118 per share.

Explanation:

To calculate earning per share we will use following formula:

$\frac{net income}{weighted average shares outstanding}$

Now to find net income we will take help of asset turnover ratio : $\frac{net sales}{total asset}$

Asset turnover ratio = $\frac{x}{860000}$

$\begin{align}\frac{x}{$86000}\end{align}$ 1.5 × $860000 = x

x (net sales) = $1290000

Outstanding shares = 75000 shares

So Net Income = $1290000×.065

= $83850

Now Earning per share = $\frac{83850}{75000}$

Earning per share = $1.118

b) Market to Book Ratio will be 1.2 for Little Book LTD.

Explanation:

Market to Book Ratio = $\frac{Market Capitalization}{Total Book Value}$

Market Capitalization = $ 75000× $ 12

= $900000

So, Market To Book Ratio = $\frac{900000}{750000}$

Market To Book Ratio = 1.2

5 0

3 years ago

Bayside Marina just announced it is decreasing its annual dividend from $1.48 per share to $1.45 per share effective immediately

sleet_krkn [62]

Answer:

the stock price has decreased in the same proportion as the dividend. 

Explanation:

Since we are told that the dividend yield remained the same, and the dividend decreased by 2.03%, we know that the price of the stock decreased by 2.03%.

= [($1.45 - $.148) / $1.48] x 100 = -2.03%

5 0

2 years ago

A graph titled U S Unemployment Rate from 1961 to 2011 has Year on the x-axis, from 1961 to 2011, and Percentage unemployed on t

almond37 [142]

Answer: 1. Decreasing

2. Increasing

Explanation: i guess on it my guy

5 0

2 years ago

Read 2 more answers

$ available at today is worth more than the same amount if received in the future

Kitty [74]

Answer:Money received today can grow at compound rate.

Explanation:

The time value of the money increases based on the interest rates. So dollar earned today has more value than dollar earned tomorrow. The time value of money concept is used in financial decision making. If $1 is received today it can be invested and the rate of interest on that investment is an added value to $1.

Money can earn interest so any amount of money received today is better than receiving the same amount in the future.

3 0

3 years ago

You invest $1,000 now, at an annual simple interest rate of 6%. What is the effective rate of interest in the fifth year of your

Delvig [45]

Answer:

The effective rate of interest in the fifth year is 6.15%

Explanation:

Mathematically, the effective rate of interest can be calculated as follows;

Reff = (1 + r/y)^y - 1

where;

r is the interest rate = 6% = 6/100 = 0.06

y is the period = 5 years

Substituting these values;

Reff = (1 + 0.06/5)^5 - 1

Reff = (1 + 0.012)^5 - 1

Reff = 1.012^5 - 1

Reff = 1.061457 - 1

Reff = 0.0615 which is 6.15%

3 0

2 years ago