Answer:
The statement that is false here is A) trailing P/E ratio are used for valuation because it is based on actual not expected earnings.
Explanation:
For the valuation purposes , the most preferred P/E ratio is forward P/E ratio, not the trailing P/E ratio because here we are more concerned about future earnings not the current. These forwards earnings are the earnings which are expected over the coming year or 12 months of time.
Answer:
$40,000 (U)
Explanation:
Given that,
Flexible-budget variance for materials = $2,000
Price variance for material = $38,000
Sales-volume variance = $13,000
Efficiency variance for direct manufacturing labor = $9,000 (F)
Flexible-budget variance for materials = Price variance for material + Efficiency variance for materials
2,000 (U) = 38,000 (F) + Efficiency variance for materials
Efficiency variance for materials = 2,000 + 38,000
= $40,000 (U)
Answer:
a. Both the equilibrium quantity as well as equilibrium price will decline.
b. The equilibrium price will fall while the equilibrium quantity will increase.
c. Both the equilibrium price as well as equilibrium quantity will increase.
Explanation:
a. If an outbreak of food poisoning is traced to eggs, this will cause the demand for eggs to decline. The demand curve will move to the left. Both the equilibrium quantity as well as equilibrium price will decline.
b. Scientists breed a new chicken that lays twice as many eggs each week. This will cause the supply of eggs to increase. The supply curve will move to the right. As a result, the equilibrium price will fall while the equilibrium quantity will increase.
c. A popular talk show host convinces her viewers to eat an egg a day. This will cause the demand for eggs to increase. The demand curve will move to the right. As a result, both the equilibrium price as well as the equilibrium quantity will increase.
<span>Callie is trying to create regular customers by giving people an incentive to come back and get coffee to work towards free coffee. Also, she is trying to create customers who are addicted to coffee and therefore will appreciate the free coffee even more.</span>
Answer:
Since consumption represents almost 70% of the GDP, any change in consumption affects the economy more than any change in the rest of the components of the GDP (net exports, investment, government). If consumption decreases, then the real interest rate will decrease.
The higher the interest rate, the lower the consumption level. This should increase the savings = more investment in the economy, but since consumption is so important to the economy, a decrease in consumption will decrease the equilibrium interest rate. This lowering in the real interest rate will be carried out in order to try to increase consumption.