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3 years ago

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The nation of Winstone's economic system closely approximates pure capitalism. While Winstone's economy is likely to generate a

great deal of wealth, it may do a poor job of providing an acceptable level of income for the elderly or disabled.
a. True
b. False

1 answer:

Shkiper50 [21]3 years ago

4 0

It seems to be at least that the answer should be true !

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Suppose First National Bank holds $100 million in assets with an average duration of 3 years, and it holds $90 million in lia

Nitella [24]

Answer:

% change decrease is = 1.2 %

Explanation:

given data

assets = $100 million

average duration = 3 years

liabilities = $90 million

average duration = 3 years

interest rates= 4% increase

to find out

percentage decrease in First National Bank's net worth relative to the total original asset value

solution

change in assets value is

change in assets value = $100 million × 4% × 3 year = $1200 million

change in liability value is

change in assets value = $90 million × 4% × 3 year = $1080 million

change in net worth = $1200 - $1080 = $120 million

so % change is = $\frac{120}{100}$

% change decrease is = 1.2 %

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3 years ago

The use of sharp, temporary price cuts as a form of _________________ would enable traditional US automakers to discourage new c

svlad2 [7]

Answer:

The correct answer is predatory pricing.

Explanation:

When we speak of the legal right "defense of free competition", what we are referring to, in very simple words, is a field of law that seeks to safeguard that competition in the markets occurs "in good and sound fashion", this it is, without cheating, fraud or other "abusive" devices that are apt to achieve, maintain or increase the market power of those who execute them, thereby damaging the collective well-being of the economic agents participating in those markets (and not only the of the individuals directly involved in a certain transaction).

3 0

3 years ago

Read 2 more answers

Suppose Rocky Brands has earnings per share of $2.33 and EBITDA of $29.3 million. The firm also has 5.3 million shares outstan

posledela

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

= (7.1 × $29.3 million) - $125 million

= 208.03 - $125 million

= 83.03

There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.

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3 years ago

Basic Break-Even Calculations Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Direct materials

kati45 [8]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $24.

Unit costs are as follows:

Direct materials $4.98

Direct labor 2.10

Variable factory overhead 1.00

Variable selling and administrative expense 2.00

Total unitary variable cost= $10.08

Total fixed factory overhead= $26,500

Total fixed selling and administrative expense= $15,260.

a. Variable cost per unit= 4.98 + 2.1 + 1 + 2= $10.08

Unitary contribution margin= 24 - 10.08= $13.92

b.

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= 13.92 / 24= 0.58

Variable cost ratio= unitary variable cost / selling price

Variable cost ratio= 10.08 / 24= 0.42

<u>c. To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= (26,500 + 15,260) / 13.92

Break-even point in units= 3,000

<u>d. Finally, the contribution margin income statement:</u>

Sales= 3,000*24= 72,000

Total variable cost= 3,000*10.08= (30,240)

Contribution margin= 41,760

Total fixed factory overhead= (26,500)

Total fixed selling and administrative expense= (15,260)

Net operating income= 0

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3 years ago

Heidebrecht Design acquired 20% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $800,000 for the

DedPeter [7]

Answer:

Detailed step wise solution is given below:

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3 years ago