Answer:
The correct answer is c) A statement that expresses each account on the balance sheet as a percentage of total assets
Explanation:
A common- size balance sheet is a statement that expresses each account on the balance sheet as a percentage of total assets
In other words, it is a balance sheet that shows the numeric value in a separate column of the relative percentages of total assets, This is useful for comparing the proportions, total liabilities and equity accounts between companies.
Answer:
II, III, and IV only
Explanation:
The first statement is wrong. IRR is the rate that causes the net present value of a projects cash-flows to exactly equal zero, and therefore a project with a required rate of return higher than the IRR would mean that the cash-flows have to be discounted by a higher rate, which would yield a negative net present value. Such a project would reduce shareholder wealth and should be rejected. The other 3 statements are correct.
Answer:
C. Depreciation period
Explanation:
For A,
A payout period is when the investors actually start getting paid hence making this a wrong choice.
For B,
Liquidation is when a firm runs into problems and prepares to shut down by liquidating assets, the proceeds from this liquidation are then paid out to investors. This also is a wrong choice.
For C,
Depreciation period is the time period for which the depreciation is charged on a fixed operating asset. This is recorded as an expense and nothing is paid out to any investor. This is the correct choice.
For D,
Annuitization period is when any annuity or investment starts paying back its investors. This is an income stream and thus this is also a wrong choice.
Hope that helps.
Answer:
Explanation:
Keynesian Economics focuses on using active government policy to manage aggregate demand in order to address or prevent economic recessions.
Keynes developed his theories in response to the Great Depression, and was highly critical of classical economic arguments that natural economic forces and incentives would be sufficient to help the economy recover.
Activist fiscal and monetary policy are the primary tools recommended by Keynesian economists to manage the economy and fight unemployment.