Answer:
D). <em>Spending more money than you make and acquiring debt</em>
Answer:
Option (d) is correct.
Explanation:
Cash receipts in month 4
:
Month 4 sales = (30% × 30,000) + (70% × 30000 × 60%)
= $21,600
Month 3 sales = 50,000 × 70% × 25%
= $8,750
Month 2 sales = 70,000 × 70% × 12%
= $5,880
Thus, total cash receipts:
= Month 4 sales + Month 3 sales + Month 2 sales
= $21,600 + $8,750 + $5,880
= $36,230
Answer:
8%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
where,
Current year dividend is $2
Price is $40
And, the growth rate is 3%
Now put these values to the above formula
So, the cost of equity would equal to
= $2 ÷ $40 + 3%
= 0.05+ 0.03
= 8%
fixed expenses ........... it makes sense
Answer:
A Dirty Float
Explanation:
A dirty float or managed float, refers to a floating exchange rate system operated by a country's central bank where there are occasional interventions in the foreign excange markets to influence the demand and supply with the intention of curbing perceived volatilities in the currency.
As stated in the question, the intervention of the Central Bank will usually occur when it believes that the currency has deviated too far from its fair value.
The dirty float system is a buffer against external economic influences that may want to disrupt the foreign exchange market in a country.
Actually, from 1946-1971, many industrialized nations around the world operated the fixed exchange rate system or the Bretton Woods agreement but this changed August 15, 1971, when President Richard Nixon decided to exit the United States from this system and till date most nations that intend to protect their domestic markets and industries against external foreign influences have adopted the dirty float exchange system.