Answer: $2,100
Explanation:
Given:
No. of shares 24,000 of $100 par
Dividend per year = (100 shares X $100 par) X 7% = $700
Since, <em><u>the preferred stock is cumulative, the holders will receive past dividends not distributed</u></em>.
From 2016: 700
From 2017: 700
From 2018: 700
<em><u>Total = $2,100</u></em>
In a condition where MPC is 0.5, a simultaneous increase in both taxes and government spending of $20 will increase GDP by $20. Therefore, the option C holds true.
<h3>What is the significance of GDP?</h3>
GDP of an economy is classified as a total of all the consumer goods and services produced in an economy during a given financial period, usually a year.
An increase in the taxes and government spending in an economy will lead to an increase in the GDP by the same rate. However, the proportion of change depends upon the MPC of an economy.
Therefore, the option C holds true and states regarding the significance of GDP.
Learn more about GDP here:
brainly.com/question/2293060
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The question seems to be incomplete. It has been added below for better reference.
If MPC = 0.5, a simultaneous increase in both taxes and government spending of $20 will _____.
A. decrease GDP by $20.
B. decrease GDP by $40.
C. increase GDP by $20.
D. increase GDP by $40.
Answer:
Explanation:
Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.
Using profit as measure of performance for manager may encourages dysfunctional behavior.
In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory
On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.
When this is used as a performance measure , it very difficult to manipulate in the short-term.
Answer:
0.09 or 9%
Explanation:
This question has some irregularities. The correct question should be :
Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 5,341 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?
Solution
Given from the question
Investment (I) = $4,900
Return on investment (ROI) in one year = $5,341
Rate or opportunity cost of capital r is given by
ROI = I × (1 + r)
input the given data
$5,341 = $4,900 (1 + r)
$5,341 = $4,900 + $4,900r
$5,341 - $4,900 = $4,900r
r = ($5,341 - $4,900) / $4,900
r = 0.09
Or 9% in percentage
I believe the answer is the demand would increase.
It is i just took the test and made a 100
