Answer: Im not doing the math but Option 2 is the better option
Explanation:
Answer:
12,552 shares
Explanation:
Data provided:
Initial outstanding shares of the firm = 16,000 shares
Value of each share = $14.50
Debt issued = $50,000
Now,
the number of shares used for issuing for $50,000 debt
= Debt issued / value of each share
on substituting the respective values, we have
the number of shares used for issuing for $50,000 debt
= $50,000 / $14.50
= 3448.27 ≈ 3448 shares
Now,
The shares of stock that are outstanding once the debt is issued =
= Initial outstanding shares - shares used for issuing for $50,000 debt
= 16,000 - 3448
= 12,552 shares
In the equation of exchange, m x v = p x q, the v represents velocity the average amount of money in circulation the average frequency with which a dollar is spent the average price level quantity purchased. Velocity is the rate that money is exchanged in a given economy, the money is usally measured in a ratio format. To find the velocity, use the ratio of the gross national product over the companies supply of money that they have.
Answer:
interest expense 409,406.4 debit
note payable 409,406.4 credit
Explanation:
We have to apply the market rate to the carrying value of the note payable:
$4,094,064 x 10% = 409,406.4 interest expense
We will increase the note payable and declare the interest expense
Then, at payment we decrease our note payable account against cash.
According to macroeconomic theory and money supply in the economy, the scenario as an example of expansionary fiscal policy includes "<u>A decrease in taxes."</u>
Other scenarios as an example of expansionary fiscal policy include the following:
- An increase in government spending;
- An increase in corporate bonds purchased;
- An increase in the money supply;
Expansionary fiscal policy is a type of policy designed to increase the money supply in the economy.
On the other hand, examples of contractionary fiscal policy include the following:
- A decrease in government spending;
- A decrease in transfer payments to dampen economic activity;
- An increase in taxes;
- A decrease in the money supply;
Contractionary fiscal policy is a type of policy designed to decrease the money supply in the economy.
However, the scenarios which are considered as not examples of fiscal policy include the following:
- A decrease in the unemployment rate;
Hence, in this case, it is concluded that fiscal policy used by the government can either be expansionary or contractionary.
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