Answer:
a. The production function in the Solow growth model is Y = F(K, L), or expressed in terms of output per worker, y = f(k). If a war reduces the labor force through casualties, then L falls but k = K/L rises. The production function tells us that total output falls because there are fewer workers. Output per worker increases, however, since each worker has more capital.
b. The reduction in the labor force means that the capital stock per worker is higher after the war.
Answer:
D) 80%
Explanation:
IRS Section 267(c)(4) establishes that the sister will be considered as constructive owner of the stock that her family owns. Family is defined as brothers (25%), sisters, spouse, ancestors (father 40% and mother 15%), children, and grandchildren.
In this case, Farber's sister would constructively own 25% + 40% + 15% = 80% of the bank's stocks.
Answer and Explanation:
The computation of the earnings and dividend per share is shown below;
But before that the net income should be determined
Sales 667000
Less: Costs 329000
Income before depreciation, interest and taxes 338000
Less: Depreciation expenses 73000
Operating income 265000
Less: Interest expenses 46500
Income before tax 218500
Less: Tax at 25% 54625
Net income 163875
a Earning per share = Net income ÷ Outstanding Common stock
= $163,875 ÷ 27200
= $6.02 per share
b Dividend per share = Dividend paid ÷ Outstanding Common stock
= $47000 ÷ 27200
= $1.73 per share
Answer: $86,112
Explanation:
The MACRS depreciation rate for recovery period of 5 years is attached to the table below.
In the first year, there was a depreciation of;
= 299,000 * 20%
= $59,800
In the second year;
= 299,000 * 32%
= $95,680
In the third year;
= 299,000 * 19.20%
= $57,408
The Accumulated Depreciation in Year 3;
= 59,800 + 95,680 + 57,408
= $212,888
Book Value in third year;
= 299,000 - 212,888
= $86,112
Answer:
A)semistrong
Explanation:
As regards to finance, the efficient-market hypothesis known as "EMH"
gives assertion that financial markets can be regards as "informationally efficient. ”
The EMH three forms which are:
1)weak
2) semi-strong
3)strong
it gives evaluation of the influence that MNPI(material Nonpublic Information ) has on market prices. It explains that when markets are efficient then the current prices reflect all information.
Semi-strong-form give a claim that prices gives reflection of all publicly available information, it also claims that
that prices instantly change to to gives a reflection of new public information.
The weak-form gives a claim that prices that is on traded assets such as bonds or stock gives reflection of
all publicly available information in the past . It should be noted that If you believe in the semistrong form of the EMH, you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm, but not information that is available only to insiders.