How is nominal gdp converted to real gdp?

What is a router?<br> (please describe in a specific way)

JulijaS [17]

Answer:

I can't really describe in a specific way but it's for internet

6 0

3 years ago

Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.

aev [14]

Answer:

a. 4.94%

b. 11.48%

Explanation:

Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.

We proceed as follows;

a. From the question;

The debt equity ratio = 1.15

since Equity = 1 ; Then

Total debt + Total equity = 1 + 1.15 = 2.15

Mathematically ;

WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)

Where WACC = 8.6%

Cost of equity = 14%

Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15

Pretax cost of debt = ?

Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15

Tax rate = 21% = 0.21

Substituting these values, we have;

8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)

Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))

Pretax cost of debt = 4.94%

b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt

8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15

Cost of equity = (8.6%-3.26279%)/(1/2.15)

Cost of equity = 11.48%

6 0

3 years ago

Which of the following describes the expected outcome of expansionary monetary policy in the short run?

Vaselesa [24]

Answer:

The correct answer is letter "A": higher employment, higher output, and a higher price level.

Explanation:

Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.

7 0

3 years ago

Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 5,000 shares of $

asambeis [7]

Answer and Explanation:

1. Cash Dr, $120,000

To Common Stock $100,000 (5,000 × $20)

To Additional Paid - in - Capital in Excess of Par $20,000

(Being issue of common stock is recorded)

2. Cash Dr, $28,000

To Common Stock Dr, $2,500 (2,500 × $1)

To Additional Paid - in - Capital in Excess of Stated $31,500

(To record issue of common stock to promoters)

3. Organization Expenses Dr, $28,000

To Common Stock Dr, $28,000

(Being issue of common stock in exchange of organization expenses is recorded)

4. Cash Dr, $121,750

To Preferred Stock $93,750 (1,250 × $75)

To Additional Paid - in - Capital in Excess of Par (Preferred) $28,000

(Being issue of Preferred stock is recorded)

8 0

3 years ago

Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3 comma 000 3,000 rolls. The cost per roll

GenaCL600 [577]

Answer:

59 orders

Explanation:

For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:

The computation of the economic order quantity is shown below:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

where,

Carrying cost = $875 × 20% = $175

And, other items values would remain the same

ow put these values to the above formula

So, the value would be equal to

= $\sqrt{\frac{2\times \text{3,000}\times \text{\$75}}{\text{\$175}}}$

= 50.71 units

Now The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $3,000 ÷ 50.71 units

= 59 orders

7 0

3 years ago