Answer:
a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.
Explanation:
Assets turnover ratio = 
Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.
Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.
Answer:
$90,500 decrease
Explanation:
Given that
Declaration of dividend = $250,000
Increase in account receivable = $159,500
Purchase of equipment = $105,000
As we see that the purchase of equipment has no impact because on one side the fixed asset increases and on the other side the cash is decreased.
We know that
Total assets = Total liabilities + stockholders equity
So, the net effect would be
$159,500 = $250,000 + stockholder equity
So, stockholder equity would be
= $159,500 - $250,000
= -$90,500
This negative sign reflects the decrease in stockholder equity
Answer:
$28.18
Explanation:
Use dividend discount model to answer this question.
Current dividend ; D0 = 3.40
growth rate; g = 2.2% or 0.022 as a decimal
D1 = D0(1+g)
D1 = 3.40(1.022)
D1 = 3.4748
Since you are buying the stock next year, calculate dividend at year 2 which you would use in the formula to find next year's price (P1) ;
D2 = D1(1+g)
D2 = 3.4748 (1.022)
D2 = 3.5512
Next year's price; P1 = D2 / (r-g)
P1 = 3.5512 / (0.148 - 0.022)
P1 = 28.1841
Therefore, you will pay $28.18
Answer:
Answer is option a, i.e. trade-offs and connections may differ in short run and the long run.
Explanation:
Keynes' law in economics and Say's law in economics are contradictory in their perspective. Where Keynes' law says that it is the demand that creates the supply, on the other hand, Say's law states that its the supply that tends to create the demand. But, we cannot neglect any of the above facts as demand and supply cant operate independently. So, on combining the two laws, we happen to take both the given laws into account. Also, it is found that Keynes' law is more appropriate and accurate for the short-run whereas, Say's law is for the long run. This thus creates trade-offs and connections that differ in the short-run and long-run by affecting the three important goals of macroeconomics, i.e. higher standard of living, low inflation, and low unemployment.
