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3 years ago

People need to have ____ in the economy to spend money.

Business

1 answer:

arsen [322]3 years ago

4 0

Answer:

B) confidence

Explanation:

Consumer confidence represents the level of optimism that consumers have on the general state of the economy. Consumer confidence is an expression of sentiments that the population has on the economic prospects in the country. The consumer confidence indicator is the metric used to measure consumer confidence.

High consumer confidence indicates that consumers are very optimistic about the prospects of the economy. When confidence is high, consumers tend to spend and invest more. With low confidence, consumers save more.

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Sunland Company is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 60,000 shares

Bingel [31]

Answer:

Issuing Stock Issuing Bonds

Net income $573,300 $361,620

Earnings per share $3.79 $3.97

Explanation:

Calculation to determine the effect on net income and earnings per share for issuing stock and issuing bonds.

ISSUING STOCK ISSUING BONDS

Income before interest and taxes

$819,000 $819,000

Interest ($2,520,000 x 12%) $0 $302,400

Income before taxes $819,000 $516,600

($819,000-$302,400=$516,600)

Income tax expense (30%) $245,700 $154,980

(30%*$819,000=$245,700)

(30%*$516,600=$154,980)

NET INCOME $573,300 $361,620

($819,000-$245,700=$573,300)

($516,600-$154,980=$361,620)

Outstanding shares 151,100 91,100

(60,000shares+91,100 shares=151,100)

Earnings per share $3.79 $3.97

($573,300/151,100=$3.79)

($361,620/91,100=$3.97)

Therefore the effect on net income and earnings per share for issuing stock and issuing bonds are :

Issuing Stock Issuing Bonds

Net income $573,300 $361,620

Earnings per share $3.79 $3.97

6 0

3 years ago

Amous architect who said "there is no architecture without construction"

elixir [45]

Answer: Aris Konstantinidis

8 0

3 years ago

Read 2 more answers

A zero coupon bond: is sold at a large premium. can only be issued by the U.S. Treasury. has a market price that is computed usi

kupik [55]

Answer:

A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

D. has less interest rate risk than a comparable coupon bond.

E. has a market price that is computed using semiannual compounding of interest.

Answer is : B

Explanation:

In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.

5 0

4 years ago

A major beverage company faced criticism of various groups and parents for contributing to childhood obesity by selling its suga

Fiesta28 [93]

Answer:

Consumer activism

Explanation:

From the question we are informed about A major beverage company faced criticism of various groups and parents for contributing to childhood obesity by selling its sugar-rich products in schools. As a result, the company partnered with the American Beverage Association and the Alliance for a Healthier Generation to offer lower-calorie and healthier beverages in school vending machines. In this scenario, the cause of the is Consumer activism. Consumer activism can be regarded as process whereby activists stand and seek to influence the process and ways that producers use in production and delivering of goods or services. Definition by Kozinets and Handelman explained it as any social movement that is been raised as society's drive as regards consumption and to detriment of business interests.

5 0

3 years ago

Calculate operating income and net income Selling, general, and administrative expenses were $66,000; net sales were $300,000; i

Kitty [74]

Answer:

a. $37,500

b. $22,800

Explanation:

The computation is shown below:

a. For operating income

Net Sales $300,000

Less: Cost of Goods Sold -$165,000

Gross Profit $135,000

Less: Selling, general and administrative Expenses $66,000

Less: Research and development expenses $31,500

Operating Income (EBIT) $37,500

b. For the net income

Operating Income (EBIT) $37,500

Less: Interest Expense -$7,100

Earnings before Tax (EBT) $30,400

Less: Taxes $7,600

Earnings after Tax or Net Income $22,800

We simply applied the above equation or format for determining the operating income and net income

8 0

3 years ago

Read 2 more answers