Inflation.
stagnation means to stay still, which it didn't. depression was before the 80's, our unemployment rate shouldn't really effect prices that drastically.
Answer:
There are a few advantages and disadvantages of these three forecasting sales: moving average, weighted moving average, and regression analysis.
Explanation:
The moving average method is the method in which calculation of a overall trend in a data set is done. It is a simple method. But its disadvantage is that this method doesn't take the data outside the average period into accounting.
The weighted moving average method uses exponential method to verify if the past data's effect is correct, Thus, this makes it more accurate in measurements. But, the disadvantage is that it is difficult to use.
The regression analysis method is majorly used for prediction and forecasting. But the disadvantage is its limitation to the linear relationship so it is not able to provide accurate result in case there are more than one variables.
Linear Multiple Regression Analysis method shows relationship between independent and dependent variables. This is best for sales forecast because it is easy to use for decision making and helps solving business problems
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Answer:
The total needs of material K in November = 52,410
Explanation:
opening ( 13600 * 3 )= 40,800 *30% 12,240
Purchases 40,170
total Available material 52,410
used for production(13,600*3) 40,800
Closing inventory ( 12,900 *3 ) = 38,700*30% 11,610
The opening inventory for November is October's closing inventory
Answer:
If increasing the level of capital from $8 million to $12 million increases real GDP from $4 to $6 million, then a further increase of the level of capital from $12 to $16 million should increase the real GDP but not in the same proportion, i.e. it will not increase the real GDP from $6 million to $8 million.
An increase in the level of capital will increase investment in the economy, but unless productivity or technological progress increases, then the gains will tend to be smaller every time.
Investment is the greatest driver of economic growth, but it cannot do it all by itself. Productivity must increase, and generally when investment increases, productivity increases due to technological progress. E.g. You deliver packages on a bicycle and are able to deliver 10 packages per day. If the company gives you a delivery truck (increase in investment and technology) then you will be able to deliver 30 packages per day and your productivity will have increased by 200%.
Answer:
WACC = 11.6%
Explanation:
<em>The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund. </em>
To calculate the weighted average cost of capital, follow the steps below:
<em>Step 1: Calculate cost of individual source of finance </em>
Cost of Equity= 13.5%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7%× (1-0.4)= 4.2%
<em>Step 2 : calculate the proportion or weight of the individual source of finance . (This already given) </em>
Equity = 80%
Debt= 20%
<em>Step 3:Work out weighted average cost of capital (WACC) </em>
WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%
WACC = 11.6%