Answer:
the government-expenditure multiplier _Is larger than_ the tax multiplier.
Is larger than
Explanation:
Keynesian Cross Model otherwise known as expenditure-output model is used to determine the point where total or aggregate expenditures in the economy are intercept the amount of output produced, i.e equilibrium level of real GDP. In economy, if MPC >0, the government-expenditure multiplier is larger than the tax multiplier.
Answer:
A) total debt = $2,230,000 and it represents 175,000 - 125,000 = 50,000 outstanding shares
price per share = $2,230,000 / 50,000 = $44.60 per share
B) enterprise value = 175,000 x $44.60 = $7,805,000
According to M&M proposition I, the enterprise value is the same with or without any outstanding debt. So the company's value is the same for both alternatives.
Answer:
Correct one is Option D.
<u>$6,500</u>
Explanation:
Fair value of its 20% interest in the receivables 8000
Less: Factoring fee=50000*3%
=1500
Amount receivable from factor= 8000-1500=6500
Answer:
c. 2.30 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $1,150 (Initial investment)
In year 1 = $500
In year 2 = $500
In year 3 = $500
If we sum the first 2 year cash inflows than it would be $1,000
Now we deduct the $1,000 from the $1,150 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $500
So, the payback period equal to
= 2 years + ($150 ÷ $500)
= 2.30 years
In 2.30 yeas, the invested amount is recovered.
Answer:
Are; investment
Explanation:
Ford produces 100,000 cars this year and only sells 95,000. The 5,000 cars that are not sold are listed in investment category of GDP
Gross Domestic Product(GDP) is the measures of the value of economic activity in a country during a period of time. It is the monetary value of all finished goods and services made within a country during a specific period.
GDP is a number that expresses the worth of the output of a country in local currency. It is a tool which guides policymakers, investors, and businesses in strategic decision making.
GDP can be calculated using the following method
1. Income method
2. Expenditure method
3. Production method
