Answer: a) total assets will increase by less than four percent
Explanation:
Since the tax rate and the dividend payout ratio are fixed, and you have net working capital and all costs varying directly with sales, the total assets will increase by a value that is less than the annual increase in sales.
Answer:
The one-day rate of return on the index is 3.43%
Explanation:
Given that the shares were priced at;
$30 for 710,000 shares
$38 for 610,000 shares
$90 for 310,000 shares
Changes in prices of shares
$34-$30=4
$36-$38= -2
$92-$90=2
Return=change in price of shares/initial price of shares *100
The return will be;
4/30*100 =13.33
-2/38*100= -5.26
2/90*100 = 2.22
Total = 13.33+2.22 - 5.26 =10.29
10.29/3 =3.43
Answer:
The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.
Multiplier Effect
for every dollar the government spends, it will create a greater than one dollar change in GDP
Spending Multiplier
1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier
Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.
Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.
Explanation: Marginal Propensity to Consume
the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI
Marginal Propensity to Save
the fraction of any change in disposable income that is saved; MPS = change is S / change in DI
D. The willingness of stores and merchants to accept electronic payments.
Explanation:
Benefits of Cashless transactions:
- Lesser crime rate
- Less money laundering
- Time saving
- Easy currency exchange
Factors to be considered by banks for cashless transactions:
- availability of technology
- convenience
- exposure to hackers
- exposure to electronic fraud schemes
Option D has nothing to do with banks for considering in making decisions regarding implementation of cashless transactions.
Answer:
The break-even point in units will increase by 400 units.
Explanation:
Giving the following information:
Fixed costs= $60,000
Selling price= $4.00
Unitary variable cost= $1
First, we need to calculate the current break-even point for the current situation.
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / (4 - 1)
Break-even point in units= 2,000 units
<u>Now, the unitary variable cost is $1.5</u>
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Break-even point in units= 6,000 / (4 - 1.5)
Break-even point in units= 2,400 units
The break-even point in units will increase by 400 units.
