Answer:
a.) Long-run earnings growth occurs primarily because firms retain earnings and reinvest them in the business.
Explanation:
Retained earnings are portions of a firm's net income that is plowed back into the business. For example if it makes a net income of $2,000,000 and it pays out 30% of that as dividends, the dividends in dollars would be 0.30*2,000,000 = $600,000. The remaining portion i.e 70% is retained back into the company, hence the amount would be 0.70*2,000,000 = $1,400,000.
This retained amount could be used to invest in potential profitable businesses that will result in increase in shareholder value. In a nutshell, the higher percentage of retained earnings the higher the growth rate a company will experience.
Answer:
$232,500
Explanation:
The computation of the amount of expected cash outflows for selling and admin expenses is shown below:
Utilities expense $2,500
Administrative salaries $100,000
Sales commission ($800,000 × 5%) $40,000
Advertising $20,000
Rent on administrative building $60,000
Miscellaneous administrative expenses $10,000
Total budgeted cash sales and administrative expenses $232,500
We added those expenses which affect the cash balance i.e decrease in cash balance so that the correct amount could arrive
All other items are not relevant. hence,ignored it
Trade restrictions should not be used to influence human rights issues, as such rights are inherent to human beings and must be protected by the State, regardless of a nation's political and commercial system.
<h3 /><h3>How does trade affect human rights?</h3>
Through the commercial interaction between countries facilitated by globalization, there is an increase in the search for profitability and consumption, which causes increased exploration at work to reduce expenses, and social inequality, increasing poverty and reducing the quality of life.
Therefore, it is essential that the protection of human rights be a priority action of a government, through regulations, public policies, worker support and training, reducing the negative impact of trade on citizens' rights.
Find out more about Human Rights here:
brainly.com/question/1261546
#SPJ1
Answer:
1. The Fed uses open market operations to increase the money supply, thus lowering interest rates and stimulating investment.
Expansionary monetary policy is done to stimulate economy by increasing money supply. It lowers interest rates and leaves more money for consumption and investment.
2. Increased aggregate demand leads to some higher prices and more total output.
Increased AG will lead to prices being higher in response. This would spur producers to produce more thereby increasing output.
3. Sticky input prices adjust to inflation.
Input prices will rise overtime to match the increase in prices.
4. Producers lay off some workers in response to higher input prices, causing a decrease in aggregate supply.
When the inputs rise, production becomes more expensive so producers will have to lay off workers to maintain profitability. They will also supply less goods as a result.
5. In the long run, equilibrium returns to the same initial production level.
In the long run therefore, the reduction in AS leads to production returning to pre-monetary policy figures.
Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
