As per the given case, the amount that is added to GDP is $350.
<h3>What do you mean by GDP?</h3>
GDP refers to the measure of all final goods and services that have been bought by the final user produced in the country.
As per the given case, Farmer smith bought seed and fertilizer for $100. He grew wheat that he sold to the wander bread company. Consumers bought the bread from the grocery for $350. Therefore, it was added to the GDP.
So, $350 was added to the GDP.
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Answer:
$8,800
Explanation:
Stock dividend is a type of dividend which is paid in the form of additional shares in the company. It is declared as a ratio or percentage of outstanding shareholding in the company.
Stock Dividend = Numbers of outstanding shares x Stock Dividend percentage
Stock Dividend = 40,000 x 2% = 800 shares
Amount ot be transferred = 800 x $11 = $8,800
Answer:
d. decrease the firm's WACC.
Explanation:
As per WACC formula
WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )
By assuming the values to prove the answer
Weights
Common equity = 55%
Preferred Equity = 15%
Debt = 30%
Costs
Common equity = 15%
Preferred Equity = 8%
Debt = 12%
Tax rate is 15%
Placing values in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )
WACC = 8.25% + 3.06% + 1.2% = 12.51%
Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )
WACC = 8.25% + 2.7 + 1.2% = 12.15%
Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.
Answer: $75
Explanation:
After deduction all expenses and taxes, the balance left either at hand or in bank is the discretionary income.
Techno is planning a security offering under Regulation D, Rule 505. Under this rule, Techno can offer an unlimited amount of securities. Securities are able to spit up different payments for profits. Through these securities regarding the regulation rule, Techno can offer a wide range of securities.
