Answer:
grow by 5 percent
Explanation:
The quantitative theory of money (QTM) states that MV=PT (M=money supply, V=money velocity, P=price level, T=number of transactions). But normally we fin it like this: MV=PY, because the cuantitative equation assumes that the value of transactions is equal to the GDP (Y).
We want to find the equation above in terms of rate of change because the problem says money supply "grows" velocity"grows" and GDP "grows", which means we have minimum two periods of time. So, the transformed equation is: ΔM+ΔV=ΔP+ΔY.
The problem is asking for the ΔP:
ΔP=ΔM+ΔV-ΔY
ΔP= 5%+2%-2%
ΔP= 5% (It is positive, then it is growing)
Answer:
Investment D would have the lowest present value
Explanation:
A is smaller compared to E, This is because the money comes in later
The same argument holds for B and C, that is, B is lower compared to C because the money comes in later too.
A is also lower than B, this is because of the annuity to be received later is larger.
D is just one payment, which means D is the right answer compared to A
This means investment D would have the lowest present value compared to all other investment choices.
To conduct a systematic random sampling out of the population, one should follow the following steps:
1. Create a list and assign numbers on every element in the population
- Say a we assign cases 1 to 12,000
2. Decide the sample desired sample size
- In our case, the sample size required is 600 cases
3. Select sampling interval
- Simply divide the population with the sample size
- 12,000/600 =20
- Therefore, our sampling interval is 20. Meaning on every 20th element on the population we get to draw our pick until the desired sample size is accomplished.
Answer:
investment on Kingbird Enterprises 650,000 debit
Goodwill 40,000 debit
cash 690,000 credit
Explanation:
We are going to recognize a goodwill between the value of the firm at fair value and the acquisition cost:
acquisition cost: 690,000
market value:
assets 880,000 - liabilities of 230,000 =<u> (650,000)</u>
goodwill: 40,000
We enter the investment at the fair value of the net assets(assets - liabilities) as this is the value they got. Kingbird will recognize a gain in their books for the sale of theses assets above their book value. But; to us, the value of the assets is 880,000 not 570,000
If the variable costs per unit were to decrease to $15.40 per unit, fixed costs increase to $992,800, and the selling price does not change, break-even point in units would: 68,093.2 Units
Solution:
The point of divergence is the manufacturing stage where production costs are equal to commodity sales. Investment is supposed to achieve a breakthrough if the market price of an asset is identical to its original cost.
New Break-even Point
= New Fixed Cost/(Selling Price - New Variable Cost)
=
=
= 68,093.2 Units