Answer:
(B) $205,000
Explanation:
Retained earnings at December 31, were $145.000, with the Net Income for 2018 of $90.000 the total amount of Retained earnings up to $235.000, but as the company has paid dividends for $30.000, it means a cash out of $30.000.
So the new balance in the Retained Earnings Account it's $205.000
Answer:
lower investment and raise the interest rate.
Explanation:
If consumers have positive economic expectations, then their marginal propensity to consume (MPC) will increase. That means that for every disposable dollar, a greater proportion will be used to consume goods and services and a smaller proportion will be left for savings.
Since private savings = investment, as the MPC increases, investment decreases. Since total savings decreases, the total amount of money available for borrowing and investing will decrease. Since the supply of available funds decreases, then the price of money (interest rate) will increase.
Answer: 4cm
Explanation:
The volume of a rectangular solid is calculated as the length multiplied by the width and then multiplied by the height.
In this scenario, since the volume is 104cm^3, the values will be:
= 4cm, 2cm and 13cm
From the values written, the length will be 4cm
Answer: $21,000
Explanation:
Financing activities refer to those that a company engages in, in relation to capital needed to run the affairs of the business which means it included Equity and Debt.
Financing Activities: Interest paid, dividends paid, money borrowed from bank, stock repurchase
Net cash flows from financing = Money borrowed from bank - Interest paid - dividends paid - Stock repurchase
= 50,000 - 6,000 - 8,000 - 15,000
= $21,000
Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
