When the Untied States spend more money then it brings in, what type of spending is it?

You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 9 percent inter

Virty [35]

Answer:

The answer is 8 years

Explanation:

FV= PV(1+r)^n

Where

PV= let's assume PV is $100

FV = Since FV will be doubled, the we have $200($100 x 2)

n= ?

r= 9percent

Let us use the rule of 72 which states that an investment will double when:

Annual Investment Rate x Number of Years = 72.

Number of years = 72/9

= 8 years

The investment is doubled in 8 years at the rate of 9percent

5 0

3 years ago

As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative t

Aleks [24]

Answer:

A. Todd, American, to visit Macedonia spring brew

Explanation:

Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.

An investment bank in South Korea, interested in purchasing U.S. government bonds - winner

The investment bank will exchange fewer wons for U.S. dollars than before. Buying government bonds will now be cheaper for them.

Goodyear, a firm based in the United States, sells car tires in South Korea - winner

Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper since the value of the dollar has depreciated against the currency that they hold.

A family from South Korea visits relatives in the United States - winner

The South Korean family will exchange fewer wons for more U.S. dollars, making their trip cheaper.

A firm from South Korea sells handbags in the United States - loser

The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.

An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser

The cost of the high-tech South Korean company is now higher for the American manufacturer because more dollars had to be exchanged for wons before the purchase.

4 0

2 years ago

Identify which type of sampling is used: random, systematic, convenience, stratified, or cluster. To determine customer opini

Ganezh [65]

Answer:

E. Cluster

Explanation:

Cluster sampling is a type of sampling method in which the population under study is divided into different groups known as clusters before simple random samples are selected from each population clusters. The analysis of such population is carried out based on the sampled clusters.

This method is adopted when a researcher does not have access to the whole population under research.

Advantages of cluster sampling.

The research method only needs fewer resources.

The sample under review is feasible.

Note: Cluster sampling is not as accurate as simple or stratified random sampling.

3 0

3 years ago

Read 2 more answers

Based on predicted production of 17,000 units, a company anticipates $255,000 of fixed costs and $216,750 of variable costs. The

Arturiano [62]

Answer:

fixed costs = $255,000

variable costs = (15,000 / 17,000) x $216,750 = $191,250

Explanation:

A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.

Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.

6 0

3 years ago

Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one th

Dmitry_Shevchenko [17]

Answer:

Explanation:

1) The earnings per share are:

EPS = $39,100/17,000 shares

EPS = $2.30

Cash flow for the company is:

Cash flow = $2.30 X 150 shares

Cash flow = $345

2) Need to determine the EPS of the firm under the proposed capital structure. The market value of the firm is:

MV = $47*17,000 = $799,000

Under the proposed capital structure, the firm will raise new debt in the amount of D = 0.20*$799,000 = $159,800 in debt. The number of shares repurchased will be:

Shares repurchased = $159,800/$47 = 3400

Under the new capital structure, the company will have to make an interest payment on the new debt. The net income with the interest payment will be:

NI = $39,100 – 0.065*$159,800 = $39100-10,387= $28,713

EPS under the new capital structure will be:

EPS = $28,713/13,600 shares = $2.11

Shareholder cash flow = $2.11*150 shares = $316.5

3) In this case, capital structure is irrelevant because shareholders can create their own leverage or unlever the stock to create different capital structures. This has no connection with the capital structure that firm chooses.

6 0

3 years ago