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3 years ago

How does the budget process make fiscal policy difficult to implement? (lo32-3)?

1 answer:

7 0

The budget process makes fiscal policy difficult to implement because
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>

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American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. T

Lynna [10]

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. The required rate of return on the security is:

-15.6%
-13.2%
-22.0%
-22.8%

<h3>What Is the Security Market Line?</h3>

The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.

Its Also known as the "characteristic line," the SML is a visualization of the CAPM, where the x-axis of the chart represents risk (in terms of beta), and the y-axis of the chart represents expected return. The market risk premium of a given security is determined by where it is plotted on the chart relative to the SML

The formula for plotting the SML is:

Required return = risk-free rate of return + beta (market return - risk-free rate of return)

Learn more about SML on:

brainly.com/question/15877803

#SPJ4

3 0

1 year ago

Access the EDGAR database (SEC.gov) and obtain the July 2018 form 10K filing (for the year ended May 31, 2018) for NIKE, Inc.

stich3 [128]

<u>Solution and Explanation:</u>

Particulars 2018 2017 2016

Revenues (a) 36,397 34,350 32,376

Cost of sales (b) 20,441 19,038 17,045

Gross profit (c) = (a) - (b) 15,956 15,312 14,971

Gross margin ration

$\text { (c) } /(a) * 100$ 43.8% 44.6% 46.2%

Monetary 2018 Compared to Fiscal 2017

For monetary 2018, our merged gross edge was 80 premise focuses lower than financial 2017, essentially mirroring the accompanying components:

• Unfavorable changes in net outside cash trade rates, including supports (diminishing gross edge roughly 90 premise focuses);

• Lower NIKE Direct edge (diminishing gross edge roughly 10 premise focuses) reflecting higher blend of off-value deals in the principal half of financial 2018, which was in part balanced by edge extension in the second 50% of monetary 2018;

• NIKE Brand the maximum ASP, net of limits, on a discount proportionate premise, which was level for financial 2018 as higher limits in the principal half of monetary 2018 were counterbalanced by higher the maximum ASP in the second 50% of the year; and

• NIKE Brand item costs, on a discount equal premise, which were level.

<u>Financial 2017 Compared to Fiscal 2016 </u>

For financial 2017, our merged gross edge was 160 premise focuses lower than monetary 2016, basically determined by the accompanying elements:

• Higher NIKE Brand the maximum ASP, net of limits, on a discount comparable premise (expanding gross edge around 70 premise focuses) lined up with our methodology to convey creative, premium items to the purchaser;

• Higher NIKE Brand item costs (diminishing gross edge roughly 100 premise focuses) as an expansion in the blend of greater expense items and work input cost swelling more than balance lower material information costs;

• Unfavorable changes in net remote money trade rates, including fences (diminishing gross edge around 90 premise focuses); and

• Lower NIKE Direct edges (diminishing gross edge roughly 20 premise focuses) mirroring the effect of higher off-value deals.

5 0

3 years ago

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850

ludmilkaskok [199]

Answer:

$142,050 is what all of her total assets are worth. If you understand the difference between liabilities and assets theses questions are incredibly easy!

Explanation:

3 0

3 years ago

What is the answer to this question ?<br> Can someone please help !

professor190 [17]

SMART is an acronym that means specific, measurable, achievable, relevant. The answer is D.

7 0

3 years ago

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $197,000 and appropriately accounted for the inve

lina2011 [118]

Answer:

Milani, Inc.

January 1, 2018:

Debit Investment in Seida $600,000

Credit Cash Account $600,000

To record the purchase of an additional 30% of Seida.

December 31, 2018:

Debit Investment in Seida $120,000

Credit Net Income $120,000

To record the share in the net income of Seida.

Debit Cash Account $44,000

Credit Cash Dividend Received $44,000

To record the company's share in the dividend paid by Seida.

Debit Cash Dividend Received $44,000

Credit Investment in Seida $44,000

To record the dividend received from Seida.

Explanation:

The cash dividend received from Seida will reduce Milani, Inc.'s investment value in Seida, just as the 40% share in the net income increased the investment value.

These journal entries have been used to debit and credit accounts as transactions occur. A journal plays an important role in recording transactions in the accounting system as it is usually the initial record of any transaction. It also shows the accounts debited or credited with a short narration that explains each transaction.

6 0

3 years ago