Answer:
$197,000
Explanation:
Given that,
Retained earnings balance at the beginning of the year = $151,000
Cash dividends declared for the year = $46,000
Net income for the year = $92,000
Ending balance for retained earnings:
= Opening balance + Profit earned during the year - Cash dividends declared for the year
= $151,000 + $92,000 - $46,000
= $197,000
Answer:
total spending needs to increase by $0.4 billion
Explanation:
Calculation to determine how much total spending needs to increase or decrease
Using this formula
Increase or Decrease in total spending=Equilibrium income/Spending multiplier
Let plug in the formula
Increase or Decrease in total spending=$2 billion/5
Increase or Decrease in total spending=$0.4 billion
Therefore If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then TOTAL SPENDING NEEDS TO INCREASE BY $0.4 BILLION to reach the potential real GDP level.
Answer:
it would have a positive income elasticity and it is a normal good
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
Answer:
b. If Stock A's required return is 11%, then the market risk premium is 5%
Explanation:
Let's analyze each choice with the CAPM formula; r= risk free+beta(mrkt return - risk free)
a.)
Assume market return is 8%
rA= 6% +1 (8% - 6%)= 8%
rB= 6% +2 (8% - 6%)= 10%
Since stock B's return is not twice that of stock A, choice a.) statement is WRONG.
b.)
Formula ; r= risk free+beta(mrkt return - risk free)
Find MRP if rA=11% knowing that MRP = (mrkt rate - risk free)
11% = 6% +1 (11% - 6%)
Therefore MRP= 11%-6% = 5% making choice b. CORRECT
Answer:
B. Mashed Potatoes
Explanation:
When using multistage technique, potatoes would be used and prepared going more than just one step of cooking method before finished. SO the correct answer is Mashed Potatoes because for this dish, potatoes have to be precooked first, and then mashed and cooked again.
Meanwhile, for French Fries, potatoes are just fried only. And similarly, baked potatoes, steamed potatoes are also example of single stage technique because potatoes only go through 1 method of cooking which are baking, steaming, relatively.
