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natka813 [3]
3 years ago
5

Suppose that nondurable goods spending is $200 billion, durable goods spending is $400 billion, new residential housing spending

is $500 billion, and spending on services is $700 billion. What does consumption equal
Business
1 answer:
umka21 [38]3 years ago
6 0

Answer:

$1,300 billion

Explanation:

total private consumption = nondurable goods spending + durable goods spending + spending on services = $200 billion + $400 billion + $700 billion = $1,300 billion

New residential housing spending ($500 billion) are considered residential investments, not part of private consumption.

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Name three authors who were caught plagiarizing and what they did ?
Llana [10]

Answer:

Jabbar Campbell, Michael Ottley and Darwin Mackerson

They plagiarizing their college essays and got expelled. One is homeless, another in jail and another one died.

Explanation:

6 0
3 years ago
Stephen owns a chemical plant. He is glad that his primary stakeholders are satisfied with the company's growth. However, he is
Lelechka [254]

Answer: D. use a manufacturing process that is compliant with all state and federal regulations.

Explanation:

The options to the question are:

a. pay less taxes

b. substitute the existing labor power with machines

c. double the output of the manufacturing process by asking workers to work overtime

d. use a manufacturing process that is compliant with all state and federal regulations

e. organize picnics for employees

Since Stephen wants to ensure the welfare of secondary stakeholders, he should use a manufacturing process that is compliant with all state and federal regulations

The secondary stakeholders are the individuals or entities that the company doesn't have direct economic transactions with e.g. the government, environmental groups, media etc.

Therefore, to please the secondary stakeholders, he must abide to the necessary rules and regulations.

3 0
3 years ago
Kaelea, Inc., has no debt outstanding and a total market value of $81,000. Earnings before interest and taxes, EBIT, are project
son4ous [18]

Answer:

a. We have:

EPS under normal = $1.09 per share

EPS under expansion = $1.34 per share

EPS under recession = $0.74 per share

b. We have:

Percentage changes in EPS when the economy expands = 23%

Percentage changes in EPS when the economy enters recession = –32%

c. We have:

EPS under normal after recapitalization = $1.24

EPS under expansion after recapitalization = $1.59 per share

EPS under recession after recapitalization = $0.75 per share

d. We have:

Percentage changes in EPS after recapitalization when the economy expands = 28.23%

Percentage changes in EPS when the economy enters recession = –39.52%

Explanation:

a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.

Shares outstanding = 5,400

Net income under normal = EBIT under normal - (EBIT under normal * Tax rate) = $9,800 - ($9,800 * 40%) = $5,880

EPS under normal = Net income under normal / Shares outstanding = $5,880 / 5,400 = $1.09 per share

Net income under expansion = (EBIT under normal * (100% + Percentage increase in EBIT)) - ((EBIT under normal * (100% + Percentage increase in EBIT)) * Tax rate) = ($9,800 * (100% + 23%)) – (($9,800 * (100% + 23%))* 40%) = $7,232.40

EPS under expansion = Net income under expansion / Shares outstanding = $7,232.40 / 5,400 = $1.34 per share

Net income under recession = (EBIT under normal * (100% - Percentage decrease in EBIT)) - ((EBIT under normal * (100% - Percentage decrease in EBIT)) * Tax rate) = ($9,800 * (100% - 32%)) – (($9,800 * (100% - 32%))* 40%) = $3,998.40

EPS under recession = Net income under recession / Shares outstanding = $3,998.40 / 5,400 = $0.74 per share

b. Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage changes in EPS when the economy expands = ((EPS under expansion - EPS under normal) / EPS under normal) * 100 = (($1.34 - $1.09) / $1.09) * 100 = 23%

Percentage changes in EPS when the economy enters recession = ((EPS under recession - EPS under normal) / EPS under normal) * 100 = (($0.74 - $1.09) / $1.09) * 100 = –32%

c. Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization.

Market price per share = Total market value / Shares outstanding before recapitalization = $81,000 / 5,400 = $15

Number of shares to repurchase = Debt amount / Market price per share = $23,100 / $15 = 1,540

Shares outstanding after recapitalization = Shares outstanding before recapitalization - Number of shares to repurchase = 5,400 – 1,540 = 3,860

Interest on debt = Debt amount * Interest rate = $23,100 * 8% = $1,848

Net income under normal after recapitalization = EBIT under normal – Interest on debt - ((EBIT under normal – Interest on debt) * Tax rate) = $9,800 - $1,848 - (($9,800 - $1,848) * 40%) = $4,771.20

EPS under normal after recapitalization = Net income under normal after recapitalization / Shares outstanding after recapitalization = $4,771.20 / 3,860 = $1.24

EBIT under expansion = EBIT under normal * (100% + Percentage increase in EBIT) = ($9,800 * (100% + 23%)) = $12,054

Net income under expansion after recapitalization = EBIT under expansion – Interest on debt – ((EBIT under expansion – Interest on debt) * Tax rate) = $12,054 - $1,848 - (($12,054 - $1,848) * 40%) = $6,123.60

EPS under expansion after recapitalization = Net income under expansion after recapitalization / Shares outstanding after recapitalization = $6,123.60 / 3,860 = $1.59 per share

EBIT under recession = EBIT under normal * (100% - Percentage decrease in EBIT) = ($9,800 * (100% - 32%)) = $6,664

Net income under recession after recapitalization = EBIT under recession – Interest on debt – ((EBIT under recession – Interest on debt) * Tax rate) = $6,664 - $1,848 - (($6,664 - $1,848) * 40%) = $2,889.60

EPS under recession after recapitalization = Net income under recession after recapitalization / Shares outstanding after recapitalization = $2,889.60 / 3,860 = $0.75 per share

d. Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage changes in EPS after recapitalization when the economy expands = ((EPS under expansion after recapitalization - EPS under normal after recapitalization) / EPS under normal after recapitalization) * 100 = (($1.59 - $1.24) / $1.24) * 100 = 28.2%

Percentage changes in EPS when the economy enters recession = ((EPS under recession - EPS under normal) / EPS under expansion) * 100 = (($0.75 - $1.24) / $1.24) * 100 = –39.52%

6 0
3 years ago
Ibtihal occasionally had garage sales at her home, and also sells a few items each month on Ebay. In one garage sale, she sold a
Taya2010 [7]

Answer:

<em>Brian prevails because the product has a warranty for some months or years.</em>

Explanation:

Therefore, <em>Ibtiha, though did not know about the defectiveness of the Ice Cream Maker sold to Brian is bound by law to replace or repair the defect device depending on what was contained in the warranty.</em>

<em />

A warranty is a type of guarantee, usually a written guarantee for a product, that a manufacturer or similar party makes regarding the condition of its product. It also refers to the terms and situations in which repairs or exchanges will be made if the product does not function as originally described or intended.

However, a warranty holds the maker of the product responsible to repair or replace a defective product or its parts, thereby Brian prevails as Ibtihal will be made to comply with the provisions of the warranty.

6 0
3 years ago
Read 2 more answers
Define the following:<br> 1. Allocation of resources<br> 2. Economic system<br> 3. Market economy
denis-greek [22]
  1. Allocation of resources is the assignment of available resources to various uses.
  2. Economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area.
  3. Market economy is an economic system where supply and demand, direct the production of goods and services.
8 0
2 years ago
Read 2 more answers
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