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4 years ago

True or false?

Business

1 answer:

Nimfa-mama [501]4 years ago

5 0

Answer:

Both statements are False

Explanation:

<u>Statement a</u>

As with higher debt involved the expected return on investment is more on equity. But reducing debt up till a certain level is beneficial in that condition, but there is an ideal debt to equity ratio of 1 - 1.5, it varies upon the industry requirements and conditions.

Although the theory which states that reducing debt will reduce cost of equity and of debt is false as there is a tax benefit on debt which states that cost is always less of debt.

<u>Statement b</u>

Financial distress and bankruptcy has several reasons to occur, and one of them is borrowing.

It do not depend on the level of borrowings, whether moderate or high, borrowings demand compulsory payment in the terms of interest due, which leads to a burden on the company. This also increases the demand of shareholders.

Thus, the statement is false.

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Which of the following most accurately describes an annuity? A. a series of unequal cash payments made at equal time intervals

klemol [59]

Answer: C is correct, a stream of equal cash payments made at equal time intervals

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3 years ago

Decreasing your w-4 allowances will _ the net pay in your paycheck _ your total tax burden

djyliett [7]

Decrease, increase
If you claim 0 allowances, the government will take the maximum amount from your check in taxes. This provides for a larger tax return at the end of the year, but also decreases your weekly pay and investment power.

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3 years ago

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decr

s344n2d4d5 [400]

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

<h3>Aggregate expenditures schedule</h3>

Using this formula

Aggregate expenditures schedule=Marginal propensity to save×Equilibrium gdp

Where:

Marginal propensity to save=0.2

Equilibrium gdp=$50 billion

Let plug in the formula

Aggregate expenditures schedule=0.2×$50 billion

Aggregate expenditures schedule=$10 billion

Therefore the marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

Learn more about Aggregate expenditures schedule here:brainly.com/question/13117251

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3 0

2 years ago

For this chart, use an APR of 15%. You will make monthly payments. Round your answers to the nearest cent.

Gnoma [55]

what

the

fridge

eat

frog

legs

instead

Round answers, its already rounded, lol

3 0

3 years ago

If consumption expenditures are $500, spending on fixed investment is $100, imports are $40, exports are $75, the capital co

aleksley [76]

Answer:

$705

Explanation:

GDP is the monetary value or price of all finished goods ans services produced in a country or region in an specific period of time. To calculate it we use this formula:

GDP= Consumption (C)+Domestic Investment (I)+Governmet expenditures and income (G)+ Net Exports (total exports minus total imports) (NX)

In this case we have, Capital Consumption Allowance (CCA): the percentage of GDP that a country must spend each year to maintain the certain economic production level.

This account is used when we have an income approach of the GDP and when we calculte the net domestic product (NDP). This formula is used when we calculate NDP.

NDP= C+I+G+NX-CCA

And also we have a formula that incorporates NDP and GDP.

NDP=GDP-CCA ⇒ GDP=NDP+CCA

So, CCA must be added to NDP to obtain GDP.

The problem also have the concept of inventories. Inventories are a stock and GDP measures a flow of production. If we want to use inventories in the GDP calculation, the change in this stock must be included.

For this problem we calculate first the NDP

NDP=$500+$100+$50+($75-$40)

NDP=$685

Then we calculate the GDP

GDP=$685+$25

GDP=$710

Then we add the change in inventories which was a fallen by 5%

GDP=$710-$5

GDP=$705

5 0

4 years ago