Answer:
The market price of the product will fall in response to the subsidy.
Explanation:
buyers can end up capturing some of the benefit because the market price of the product will fall in response to the subsidy. the market price of the product will rise in response to the subsidy.
Answer:
A bank run occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future
Explanation:
A bank run occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future
Answer:
$4,941.96
Explanation:
Note: The complete question is attached as picture below
ROE = NI/TA
ROE = 9,702/81,000
ROE = 0.1198
The plowback ratio b, is (1 - payout ratio)
b = 1 - 30%
b = 1 - 0.30
b = 0.70
Sustainable growth rate = (ROE*b)/ (1 - (ROE*b)
Sustainable growth rate = 0.1198*(0.70) / (1 - 0.1198*(0.70)0
Sustainable growth rate = 0.0915
Sustainable growth rate = 9.15%
Maximum increase in sales = $54,000 * (0.0915)
Maximum increase in sales = $4,941.96
<span>Year
2018 ($45,000 - $5,000)/10 = 3,000 Ă— 4/12 = $1,000
2019 ($35,000 - $5,000)/10 = $3,000</span>