Answer:
These stores sell inferior goods and services.
Explanation:
An inferior good or service is a good or service whose demand decreases as the income of their consumers increases, i.e. if the consumers are earning more money, they will consume less of them.
On the other hand, when their consumers' income decreases, their demand increases.
Both McDonald's and Dollar General are business that sell cheap goods and services, so when the financial crisis decrease American households' incomes, they more people purchased their goods and services.
Answer:
D.
Explanation:
The vertical analisys shows the different components of a finalcial statement related to a total figure in the statement.
Expresses each financial statement item as a percent of a base amount.
Commonly applied to the balance sheet and the income statement. On the balance sheet, set total assets to 100. On the income statement, set net sales to 100. The resulting statement, expressed entirely in percentages is called a common-size statement.
The total figure in the statement set to equal to 100. Each component´s percentage of that total is computed.
Usefull for comparing. The important of specific components in the operation of a business. Changes in the components from one year to the next.
Answer:
c. $8.63
Explanation:
Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88
, B. $9.12
, C. $8.63
, D. $9.02"</em>
Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum
The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.
Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)
= (0.045 - 0.035) * 1000
= $10
Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period
= 10 / [1+(0.06/2)]^(30/6)
= $8.6261
= $8.63
Answer:
$6,021
Explanation:
The computation of the company's total liabilities is shown below:-
Current Assets = Total Assets - Fixed Assets
= $8,510 - $6,025
= $2,485
Current Liabilities = Current Assets - Net Working Capital
= $2,485 - $1,005
= $1,480
Total Liabilities = Long-Term Debt + Current Liabilities
= $4,541 + $1,480
= $6,021
