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3 years ago

As competition increases, businesses find greater opportunities for successTrue or false?

1 answer:

8 0

The answer would be TRUE because when quantity increases among the competition, its natural for businesses to find another way for success so they can be the best of the best and make more money than the other businesses, so since this is correct, its true.

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Imagine that after completing your economics course (you get an A, of course) you are at a family gathering. Your grandmother as

Maksim231197 [3]

Answer:

$16,875

Explanation:

The amount received per year is $15,000 and the CPI increased from 144 to 162

Inflation rate = (New CPI - Old CPI)/Old CPI * 100

Inflation rate = 162-144/144 * 100

Inflation rate = 0.125

Inflation rate = 12.5%

Amount received = $15,000 * 12.5% = $1,875

==> $15,000 + $1,875 = $16,875

So, Grandmother will receive $16,875

3 0

3 years ago

If the market risk premium increased to 6%, what would happen to the stock's required rate of return

Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

7 0

3 years ago

The Vogt corporation paid a dividend of $4.20 on its stock in the year just ended. If the dividends are projected to grow at a r

Jet001 [13]

Answer:

cost of equity = 13%

Explanation:

With the info given, we will use cost of equity formula from Dividend Growth Model. THis is given by:

$k_e=\frac{D_1}{P_0}+g$

Where D_1 is the next year dividend or D_1 = D_0(1+g)

P_0 is current stock price

g is the growth rate

Since D_0 (dividend this year) is 4.20 and g = 6.4% or 0.064, we can calculate D_1:

$D_1=D_0(1+g)=4.2(1+0.064)=4.47$

Current share price is 68, so we can now calculate cost of equity:

$k_e=\frac{4.47}{68}+0.064=0.13$

Hence,

cost of equity = 13%

8 0

3 years ago

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 f

max2010maxim [7]

Answer:

Banes Domino's Company

Closing Entries

Date Acct.No Account Debit Credit

9 Income Summary 329,000.00

11 Salary Expense 244,500.00

12 Rent Expense 48,000.00

13 Depreciation Expense 25,000.00

14 Supplies Expense 9,500.00

15 Miscellaneous Expense 2,000.00

Expenses are closed to Income Summary Account.

10 Fees Earned 510,000.00

9 Income Summary 510,000.00

Revenue Accounts are closed to Income Summary Account.

9 Income Summary 181,000.00

Jack Banes, Capital 181,000.00

To close Income Summary Account

Jack Banes, Capital 47,000.00

Jack Banes, Drawing 47,000.00

To Close withdrawals account.

5 0

3 years ago

Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities

Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0

3 years ago