Answer:
The Matching principle.
Explanation:
Matching principle is the accounting principle that requires that the expenses incurred during a period should be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur expenses to earn revenues.
The principle is at the core of the accrual basis of accounting and adjusting entries.
Answer:
$2,152.22
Explanation:
Given that,
FinCorp’s free cash flow (FCFF) = $205 million
Firm’s interest expense, i = $22 million
Tax rate, t = 35%
Growth rate, g = 3%
Cost of equity, e = 12%
Net debt of the firm increases by $3 million
Interest expense (Net of tax) = -i × (1 - t)
= -$22 × (1 - 35%)
= -$22 × 0.65
= -$14.3
FCFE = FCFF + Debt + Interest expense (Net of tax)
= $205 million + $3 - $14.3
= $193.7
Therefore,
Market value of equity = FCFE ÷ (e - g)
= $193.7 ÷ (0.12 - 0.03)
= $2,152.22
Answer:
c. increases the quantity of goods and services demanded.
Explanation:
According to the law of demand, there is an indirect relationship between demand and the prices for good or service. Should the price of a good or service increase, its demand will decrease. Demand comprises of the willingness and ability to buy.
A decrease in the price level will make the product affordable by more buyers. The market will afford to buy more of that product. The law of demand works together with the law of supply. The intersection of demand and supply curves determines the price of a product.
Assume the market basket for the consumer price index has two products meat and potatoes, the Consumer Price Index for 2016 equals option c. 129.
<h3>What is meant by the term of consumer Price Index?</h3>
The consumer price index (CPI) is known to be a term that connote the instrument that is often used in the measurement of inflation.
It is said to be one that is often used so that one can be able to estimate the average variation that tend to exist between two given periods in the prices of products which are known to be consumed by households.
Therefore, based on the image attached, Assume the market basket for the consumer price index has two products meat and potatoes, the Consumer Price Index for 2016 equals option c. 129.
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