Answer:
The marginal propensity to consume is 0.7.
Explanation:
The marginal propensity to consume (MPC) is a measure to determine the increase in consumer spending as a result of increase in disposable income. The marginal propensity to consume can be calculated by dividing the change in consumer spending by the change in disposable income.
MPC = change in consumption / change in disposable income
Thus, MPC = 14 / 20 = 0.7 or 70%
Nash’s ansnshs sksisis wish she aiwueyd skeiuedv disused d
Answer:
Closing Inventory = $31050
Explanation:
The cost of goods sold is the cost of the inventory that the business sells during a period of time. The cost of goods sold is calculated as follows,
Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory
As we already have the values for Opening inventory, net cost of purchases and the cost of goods sold, we can input these values in the above formula to calculate the cost of closing inventory.
93150 = 22950 + 101250 - Closing Inventory
93150 = 124200 - Closing Inventory
Closing Inventory = 124200 - 93150
Closing Inventory = $31050
Answer: 9.48%
Explanation:
Given Data
Debts ;
$7 billion
$2 billion
$13 billion
Beta of Fords stock = Beta = 1.50
Market risk premium = Rp = 8.0%
Risk free rate of interest = Rf = 4.0%
Equity rate = 1.7
Market risk rate = 0.8
Risk free rate = 0.03
Therefore;
Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium
= 0.03 + (1.7 × 0.8)
= 0.166
Preferred Stock Cost ( PSC)= Dividend ÷ stock price
= 4 ÷ 30
= 0.1333
Total debt = 13 + 6 + 2 = 21 billion
D% = 13 billion ÷ 21 billion
= 0.619
E% = 6 billion ÷ 21 billion
= 0.286
P% = 2 billion ÷ 21 billion
= 0.095
RD = debt capital at 8% maturity rate
Tc= 30%
Rwac =(w/ preferred stock)
= Re × E% + PSC × P% + Rd ( 1- Tc) D%
Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)
= 0.094803 * 100
= 9.48%
At 30% tax rate Ford weighted average cost is 9.48%
Answer:
a.both demand and supply
Explanation:
equilibrium can only be attained if supply and demand are at balance (favourable)
