All categories

3 years ago

Policy Recommendation

Business

1 answer:

Vladimir79 [104]3 years ago

6 0

Answer:

Explanation:

Suggest Fiscal Or Monetary Policies That Can Address This Problem. Use The IS/LM/FE And/or The AD/AS Models To Derive The Short-run And Long-run ... and long-run effects of these policies on the identified problem and on the rest of ...

You might be interested in

ABC Company's preferred stock pays a constant dividend of $2 per share in perpetuity (Zero Growth). If the required return is 8%

mezya [45]

Answer:

Price per share of preference share = $25

Explanation:

Preference dividend is generally fixed, and does not change as there is a standard rate prescribed at the time of issue of preference shares.

Provided here is, dividend for preference shares = $2

Expected return each year = 8%

Expected growth = 0%

Thus, cost or price per share of preference stock = Dividend/Expected Return = $2/8% = $25 each share.

6 0

3 years ago

Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $19,200 per year for 10 ye

kumpel [21]

Answer:

$480,000

Explanation:

The computation of the depreciable cost of the new asset is shown below:

Given that

Depreciation tax shield = $19,200

Tax rate= 40%

Now

Actual Depreciation for the year is

= $19,200 ÷ 40%

= $48,000

Now

Total Depreciation cost for 10 years is

= $48,000 × 10

= $480,000

6 0

3 years ago

If overnight delivery makes you think of FedEx, what marketing strategy caused that association in your mind?

Lubov Fominskaja [6]

I Think it’s direct Mail I hope it helps

8 0

4 years ago

Read 2 more answers

Cullumber Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit u

Reika [66]

Answer:

If Cullumber accepts the offer, the current timer unit supervisory and clerical staff will be laid off.

If Cullumber accepts the offer its net profits will decrease by ($309,928)

If Cullumber accepts the offer, and uses the freed-up manufacturing facilities to manufacture a new line of growing lights.

Cullumber's net profits will decrease by ($30,778)

Explanation:

annual production of 40,780 timers

Direct materials $12

Direct labor $7

Variable manufacturing overhead $3

Direct fixed manufacturing overhead $8 (30% supervisory and clerical salaries, 70% equipment depreciation)

Allocated fixed manufacturing overhead $8

total cost per unit = $38 per unit x 40,780 = $1,549,640

40,780 timers have been offered at $32 per timer = $1,304,960

scenario 1: Cullumber accepts the offer and lays off personnel:

Keep producing Purchase Differential

clocks clocks amount

Production costs $995,032 $995,032

(unavoidable fixed

costs not included)

Purchase costs $1,304,960 ($1,304,960)

total costs $995,032 $1,304,960 ($309,928)

If Cullumber accepts the offer its net profits will decrease by $309,928

relevant costs / revenues related to accepting the offer:

93,050

scenario 1: Cullumber accepts the offer and uses the freed-up manufacturing facilities to manufacture a new line of growing lights.

Keep producing Purchase Differential

clocks clocks amount

Production costs $995,032 $995,032

(unavoidable fixed

costs not included)

Purchase costs $1,304,960 ($1,304,960)

Revenue from ($279,150) $279,150

production of lights

(contribution margin

x 93,050 units)

total costs $995,032 $1,025,810 ($30,778)

5 0

3 years ago

A large national bank charges local companies for using their services. A bank official reported the results of a regression ana

Snowcat [4.5K]

Answer:

The correct option is (b).

Explanation:

The regression equation to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies based upon the company's sales revenue (X) measured in millions of dollars is:

$\hat Y=-3100+27X$

The y-intercept of the line is, -3100.

The slope of the line is, 27.

The y-intercept of a regression line is defined as the average value of the dependent variable when the independent variable value is 0.

The dependent variable, in this case, is the bank's charges and the independent variable is the company's sales revenue.

As the company's sales revenue cannot be $0, the y-intercept cannot be interpreted.

Thus, the correct option is (b).

5 0

4 years ago