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2 years ago

an increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

Business

1 answer:

tino4ka555 [31]2 years ago

5 0

Answer:

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run? A. The price level will rise, and the level of GDP will fall.

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Dave Seminsky’s ability to open Sumarian Coffee in Shanghai can be attributed to which of the following?A. ethnocentrismB. avail

Advocard [28]

Answer:

E. globalization

Explanation:

-Ethnocentrism refers to judging another culture based on your own culture and considering yours as superior.

-Availability of supplies refers to having access to the products needed for the business.

-Avoidance of tariffs and import quotas refers to not having limitations like paying taxes on imports or exports or having a maximum quantity of a product that can be imported or exported.

-Lower labor costs refers to low salaries.

-Globalization refers to a process of integration that involves people, governments and companies around the world. When talking about business is about developing an international presence and beginning to operate in other countries.

According to this, Dave Seminsky’s ability to open Sumarian Coffee in Shanghai can be attributed to globalization.

4 0

2 years ago

Auto Industries Company reported the following on its income statement:

AleksandrR [38]

Answer:

Option c. 5.25 times is the correct answer.

Explanation:

Below is the calculation:

Income before income tax = $420000

Income tax expenses = 120000 dollars

Net income = $300000

Interest expense = $80000

Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses

Interest earned ratio = 420000 / 80000

Interest earned ratio = 5.25 times

Option c. 5.25 times is the correct answer.

7 0

3 years ago

HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk

ELEN [110]

Answer:

12%

Explanation:

For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:

Weight of capital structure

For debt

= $200 million ÷ $400 million

= 0.50

For equity

= 50 million × $4 ÷ $400 million

= 0.50

Now the WACC is

= 0.50 11% + 0.50 × 5%

= 8%

Since the value fo equity is declined by

= 50 × $3

= $150

Now the equity cost of capital is

= WACC + (WACC - interest rate) × (debt ÷ equity)

= 8% + (8% - 5%) × (200 ÷ 150)

= 12%

6 0

3 years ago

Is ben afflecks wife the jennifer garner who does the capital one commercials?

kotegsom [21]

Yes she is !!!!!!!!!!!!!

5 0

3 years ago

On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% inte

jeka94

Answer:

1. Discount

2. $449,298.47

3. $369,298.47 gain

4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47

Explanation:

Question 1

Using the formula below

$Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}$

where

I = interest rate, which is 6% of 500,000 = 30,000

F = Face value, 500,000

r = borrowing cost = 12%

Therefore, the price of the note at the time it was used for payment was

$Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}$

= $449,298.47.

As the price is lower than the face value of the note, the note was issued at a discount.

Question 2

The fair market value of the note is $449,298.47, the compute price in question 1.

Question 3

The gain/loss on the sale of the land

= sale price - purchase price

= $449,298.47 - 80,000

= $369,298.47.

Question 4

The transaction would affect Crabb & Co's balance sheet as follows.

<em>Asset side:</em>

land reduces by $80,000

investment increases by $449,298.47

<em>Equity & liabilities side:</em>

reserves increases by $369,298.47

3 0

2 years ago