Answer: A perfectly inelastic supply curve means that<u><em> the quantity supplied is completely fixed.</em></u>
Perfectly inelastic supply states that supply is completely fixed. Therefore it is not affected by the change in price level.
<u><em>Therefore, the correct option in this case is (e)</em></u>
The correct answer should be false.
Answer: Please check in the explanation column for answer
Explanation: The entries on the appropriate dates to record the declaration and payment of cash dividend in Sheffield Corporation is given as
Nov 1.
Debit: Cash Dividends 84,000
Credit: Dividends Payable 84,000
Dec 31.
Debit: Dividends Payable 84,000
Credit: Cash 84,000
Answer:
a.the price level is higher than expected making production more profitable.
Explanation:
The sticky wages shows that the output increases if the price level is higher because an increase in price level increases the profitability and the increased profitability increases output.
Answer:
Debt / Equity = 0.72649 : 1 or 72.649%
Explanation:
The ROE or return on equity can be calculated using the Du Pont equation. It breaks the ROE into three components. The formula for ROE under Du Pont is,
ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Shareholder's equity
or
ROE = Net Income / Total equity
Assuming that sales is $100.
Net Income = 100 * 0.051 = 5.1
Total Assets = 100 / 1.84
Total Assets = 54.35
0.162 = 5.1 / Total equity
Total Equity = 5.1 / 0.162
Total Equity = 31.48
We know that Assets = Debt + Equity
So,
54.35 = Debt + 31.48
Debt = 54.35 - 31.48
Debt = 22.87
Debt / Equity = 22.87 / 31.48
Debt / Equity = 0.72649 : 1 or 72.649%
