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Evgesh-ka [11]
3 years ago
15

If the economy is falling below potential real​ GDP, which of the following would be an appropriate fiscal policy to bring the e

conomy back to​ long-run aggregate​ supply? An increase in.
Business
1 answer:
IceJOKER [234]3 years ago
6 0

Answer:

Government spending

Explanation:

Expanded government spending is probably going to cause an ascent in aggregate demand (AD). This can prompt higher development momentarily. It can likewise increase the overall GDP. Higher government spending will likewise affect the supply side of the economy. Likewise, increase in government spending centres to apply fiscal policy is a way which could improve the economic situation of the country, it can also improve efficiency and a development over the long-run.

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Nor Corporation borrowed money using a discounted note at 94 with a stated 6% interest rate and a face amount of $400,000. What
kolezko [41]

Answer:

the effective rate of interest on the debt is 6.38%

Explanation:

The computation of the effective rate of interest on the debt is shown below:

Effective rate of interest is

= ($400,000 × 6%) ÷ ($400,000 × 0.94)

= $24,000 ÷ $37,600

= 6.38%

Hence, the effective rate of interest on the debt is 6.38%

It could be determined by applying the above formula so that the correct rate could come

8 0
3 years ago
New steel products has total assets of $820,470, a total asset turnover rate of 1. 39, a debt-equity ratio of 2. 8, and a return
nadya68 [22]

The firm's net income is $114,045,330.

Total Asset Turnover = Sales / Assets

or, 1.39 = Sales / $820,470

Sales = $820,470 × 1.39 = $1,140,453.3

Now,

Equity Multiplier

= Assets / Equity

= (Debt + Equity) / Equity

= (2.8 + 1) / 1

= 3.8

(Debt equity ratio has been used here)

As per Dupont Analysis,

ROE = Profit margin x Asset Turnover x Equity Multiplier

or, 0.34% = Profit Margin x 1.39 x 3.8

Profit Margin = 5.282%

Profit Margin = Net Income / Sales x 100

5.282% = Net Income / $1,140,453.3 x 100

Thus, Net Income = $114,045,330

Net income is an amount which an individual or business makes after deducting costs, taxes, and allowances. Thus, net income is what the business has left over after all its expenses.

To learn more about Net income here:

brainly.com/question/1347024

#SPJ4

7 0
2 years ago
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Cu
Delicious77 [7]

Answer and Explanation:

The computation is shown below;

1.

Working capital = Current Asset - Current Liabilities

= $569,000 - $280,000

= $289,000

2.

Current ratio  = Current Asset ÷ Current Liability

= $569,000 ÷ $280,000

= 2.03

3.

Acid-test (quick) ratio  = {(Current Asset - Inventory - prepaid expense) ÷ Current Liabilities }

= {{$569,000- $320,000 - $8,000) ÷ ($280,000)}

= 0.86 times

4.

Debt-Equity ratio   = Total Liability ÷ Shareholders' Equity

= $670,000 ÷ $759,000

= 0.88 times

5.

Times interest earned   = EBIT ÷ Interest Charges

= ($1,224,000 + $35,100) ÷ ($35,100)

= 35.87 times

6.

Average collection period

= 365 ÷ ($3,010,00 ÷ $215,000)

= 26 days

The $215,000 comes from

= ($210,000 + $220,000) ÷ 2

= $215,000

7. The average sales period is

= 365 ÷ ($1,110,000 ÷ $300,000)

= 99 days

The $300,000 comes from

= ($280,000 + $320,000) ÷ 2

= $300,000

8. The operating cycle is

= 99 days - 26 days

= 73 days

3 0
2 years ago
Two fatal flaws can render a business model untenable from the beginning. These are:
zavuch27 [327]

Answer:

The correct answer is the option A: failure to complete a business plan and failure to get funding.

Explanation:

To begin with, if an entrepreneur failures to complete a business plan and to get funding then the most probable thing to happen is that his business will be untenable from the beginning due to the fact that if the person do not possesses money and a plan to put his ideas in action he will never achieve his primary goals, that is, obtaining profits at long term. Therefore that if there is no business plan in which the company must focus and there is no money to carry out that strategy then the business model is doomed.

6 0
3 years ago
Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is
Usimov [2.4K]

Answer:

a. 3.56%

b. 2.31%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $1,040

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 4% ÷ 2 = $20

NPER = 11 years × 2 = 22 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is = 2 × 1.78% = 3.56%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 3.56% × ( 1 - 0.35)

= 2.31%

5 0
3 years ago
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