B. extracurricular activities!
Answer:
A. $600
Explanation:
The formula and the computation of the Marginal propensity to consume are shown below:
Marginal propensity to consume = Change in consumer spending ÷ Change in disposal income
0.6 = Change in consumer spending ÷ $1,000
So, the change in consumer spending is
= $1,000 × 0.6
= $600
Hence, the consumption that is given in the question is not considered. Therefore, ignored it
Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
Answer:
E) Any of the above may be possible.
Explanation:
Negative feedback means any of following reasons are possible:
1. The decision was a bad one (most probably)
2. More information and new suggestions should be incorporated since the more input better will be the output
3. More time, resources, effort and thought are needed
4. Manager may have to re-start the decision process from beginning
Answer:
A) is used to determine minimum legal capital balances at issuance
Explanation:
The par value of stock represents the minimum amount that must be paid per share. Par value is also referred as the Face Value or Nominal Value of common stock. The Par Value of common stock is derived by Par value per share * No. of Issued Shares.
