<span>An advantage of a sole proprietorship is that the owner can make business decisions quickly.</span>
Answer:
Since no transactions are specified that were made out of the group ( i.e. Holding Company and Subsidiary) so, in consolidated income statement of 20x8, no COGS shall be shown for the transactions made between Pie and Slice Co.
Explanation:
In consolidated financial statements, we represent Holding ( Pie ) and Subsidiary ( Slice ) Companies as a single unit. Hence, the transactions made within the group are not considered in making of Consolidated financial statements.
However, both companies will show the sales and COGS in separate financial statements.
Answer:
The answer is: re > rs > WACC > rd.
Explanation:
We can see that the return on equity is greater than return on common stock which is greater than Weighted average cost of capital and return on debt.
For the source of financing, debt will be less cost than others because of the tax effect.
While weighted average cost is decided by return on equity, preferred stock and debt. => It is higher than the cost for debt.
Answer:
The correct answer is a) The economy moves from a boom to a recession
Explanation:
The fiscal policy used by the federal reserve is the use of government spending and tax policies to contract or expand the economy.
If the Federal Reserve of the United States increases the interest rates it carries a contract policy of the economy. It is used to reduce the inflation and the economy moves from a boom to a recession
