Answer:
The computation is shown below:
Explanation:
The computation is shown below:
As we know that
a) Marginal Propensity to Consume (MPC) = Change in consumption ÷ change in disposable income
MPC = $15 billlion ÷ $20 billion
MPC = 0.75
And,
Marginal Propensity to Save (MPS) = change in saving ÷change in disposable income
MPS = $5 billion ÷ $20 billion
MPS = 0.25
Now
b) Before the increase in disposable income
The average propensity to consume (APC) is
= Consumption ÷ disposable income
= $150 billion ÷$200 billion
= 0.75
And,
After the increase in the disposable income
New disposable income = $200 billion + $20 billion
= $220 billion
And,
New consumption = $150 billion + $15 billion
= $165 billion
So,
APC = New consumption ÷ new disposable income
= $165 billion ÷ $220 billion
= 0.75
'Actual Tigers Company'
Total Assets
$100,000
Stockholder Equity: $30,000
$100,000 - $30,000 = $70,000
$70,000 + $30,000 = $100,000
Total Assets - Equity = $70,000 (total liabilities)
$70,000 + Equity = $100,000 (total assets)
In accounting if we minus the total assets ($100,000) with equity ($30,000) it will always give the "total liabilities" which is (70,000)
Then, adding the "total liabilities" ($70,000) with the equity ($30,000) equals $100,000 equal like as the "total assets"of $100,000
The total assets MUST match the total liabilities. If they don't match then either the calculation of the total assets are inaccurate or the numbers are estimated wrong to recalculate.
Answer:
a. To increase Land - Debit
b. To decrease Cash - Credit
c. To increase Fees Earned (Revenues) - Credit
d. To increase Office Expense - Debit
e. To decrease Unearned Revenue - Debit
f. To decrease Prepaid Rent - Credit
g. To increase Notes Payable - Credit
h. To decrease Accounts Receivable - Credit
i. To increase Common Stock - Credit
j. To increase Store Equipment - Debit
Explanation:
Debit gives details of spending, sum owed , amount to balance which is usually recorded to the left side of an account entry book while credit gives the details of income, amount earned or made on sale, spending cut and revenue and is usually placed to the right hand column of an account entry.
Answer:
the firm's cost of equity is 17.808%
Explanation:
A firm's cost of equity is the return expected by holders of Common Stock.
The Data available allows us to use the Capital Asset Pricing Model (CAPM) to determine the cost of Equity.
Cost of Equity = Risk Free Rate + Company`s Beta × Expected Return on Market Portfolio
= 2.8%+1.34×11.2%
= 17.808%
Answer:a. Total common stock issued is 750 millions
b. In treasury is 109 million
c. Outstanding 750 million.
Explanation:
Issued shares referred to the total amount of authorised shares that has been issued to the public for subscription.
Treasury stock refers to parts of the issued stock that are held up for the ownership of the issuing company.
Outstanding stock refers to the total number of stock issued and fully paid for from the issued stock.
