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3 years ago

How does the government use monetary policy and fiscal policy to achieve its macroeconomic goals?

1 answer:

8 0

Monetary policy refers to actions by the Federal Reserve System (the Fed) to control the money supply. ... By expanding the money supply, the Fed stimulates economic growth. The government also uses fiscal policy— changes in levels of taxation and spending—to control the economy.

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Kate is analyzing a proposed project to determine how changes in the sales quantity would affect the project's net present value

Fittoniya [83]

Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.

6 0

3 years ago

Ayayai Inc. presented the following data. Net income $2,680,000 Preferred stock: 48,000 shares outstanding, $100 par, 8% cumulat

bezimeni [28]

Answer:

$1.35 per share

Explanation:

Note: See the attached excel file for the calculation of the weighted shares outstanding.

The earnings per share can be computed as follows:

Weighted shares outstanding = 1,702,000 shares

Preferred stock dividend = 48,000 * $100 * 8% = $384,000

Net income = $2,680,000

Net income after preferred stock dividend = $2,680,000 - $384,000 = $2,296,000

Earnings per share = Net income after preferred stock dividend / Weighted shares outstanding = $2,296,000 / 1,702,000 = $1.35 per share

Download xlsx

4 0

3 years ago

Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 24 percent. The company has $143,500 in outst

Dima020 [189]

Answer:

The value of the firm according to M&M Proposition I with taxes is $513,824.62

Explanation:

Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]

Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%

Value of firm = 62320 / 0.13 + 143500 x 0.24

Value of firm = 479,384.62 + 34,440‬

Value of firm = $513,824.62‬

7 0

3 years ago

Precilla Company uses a standard costing system that allows 2 pounds of direct materials for one finished unit of product. Durin

fenix001 [56]

Answer:

actual quantity= 25,000 pounds

Explanation:

Giving the following information:

Standard quantity= 2 pounds per units

Production= 12,000 units

Direct material quantity variance= $5,000 unfavorable

Standard price= 120,000/(2*12,000)= $5

<u>To calculate the actual quantity used in production, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

-5,000 = (24,000 - actual quantity)*5

-5,000 = 120,000 - 5actual quantity

125,000/5 = actual quantity

25,000 = actual quantity

6 0

3 years ago

An ice cream manufacturer makes ice cream in two processes, Mixing and Packaging. During April, its first month of business, the

Mazyrski [523]

Based on the sales revenue that the ice cream manufacturer got and the cost of goods sold, the total gross profit on ice cream sales is $300,000.

<h3>How is the total gross profit calculated?</h3>

This can be found as:

= Sales revenue - Cost of goods sold

Sales revenue:

= 200,000 x 4.70

= $940,000

Cost of goods sold:

= Total production cost / Total units produced x Units sold

= 665,600 / 208,000 x 200,000

= $640,000

Gross profit:

= 940,000 - 640,000

= $300,000

Find out more on gross profit at brainly.com/question/942181.

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3 0

1 year ago