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2 years ago

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Owing to his impulsive buying habits, Ronnie's unpaid credit card balances pile up to $9,000. As Ronnie does not have enough mon

ey to clear his bills, he is in a deep financial crisis. In this scenario, the first step that Ronnie should take is to:

1 answer:

alexandr1967 [171]2 years ago

4 0

get a job and work hard duhh

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2) If a country, like the US, can produce all of the goods and services needed by

WITCHER [35]

Answer:

See below

Explanation:

Specialization means a company or country concentrating on producing few commodities. In practice, a state or company will focus on the products it can produce more efficiently. It means focusing on goods they can manufacture at a lower cost compared to other countries.

The USA can specialize in the goods and services it can produce at a lower cost than other nations. It can then export these products to other countries at competitive prices. For products that are costly to manufacture in the USA, it is prudent to import them from countries that can produce them at lower costs.

Some products manufactured in other countries at a lower cost may be sold in the USA at fair prices than when produced in the USA.

5 0

3 years ago

which one of the following is the primary determinant of a firm's cost of capital? a. cost of debt b. d/e ratio c. tax rate d. u

kolbaska11 [484]

Use of the funds ne of the following is the primary determinant of a firm's cost of capital. (OPTION D).A company's capital structure, or how money is used, will vary depending on the characteristics of its operational industry.

The main determinant of the firm's funds of capital would be its capital structure or method of usage. Firm traits including expansion, size, collateral asset value, profitability, volatility, non-debt tax shields, distinctiveness, industry, etc. are factors that affect capital structure. There may be numerous indicators for each capital structure factor. Tangibility, profitability, sales growth, business risk, and firm size act as moderating variables when determining capital structure in this study.

To learn more about funds, click here.

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4 0

1 year ago

You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be acce

Romashka [77]

Answer:

13.28%; B

Explanation:

Project A Project B Differential

Year 0 -$21,000 Year 0 -$21,000 0

Year 1 $7,000 Year 1 $15,000 -$8,000

Year 2 $7,000 Year 2 $5,000 $2,000

Year 3 $15,000 Year 3 $7,000 $8,000

the discount rate = 14%, the NPV is:

NPV project A = -21,000 + 7,000/1.14 + 7,000/1.14² + 15,000/1.14³ = $651

NPV project B = -21,000 + 15,000/1.14 + 5,000/1.14² + 7,000/1.14³ = $730

if the discount rate is 14%, project B should be accepted (higher NPV)

the crossover rate is the discount rate where both NPVs are equal.

we must find the IRR using an excel spreadsheet and the IRR function:

=IRR (0,-8000,2000,8000) = 13.28%

3 0

3 years ago

"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous

kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

6 0

3 years ago

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respec

Jobisdone [24]

Answer:

MPC = 0.8

MPC = 0.2

Explanation:

Marginal propensity to consume is the proportion of an increase in income that is spent on consumption.

Marginal propensity to consume = increase in consumption / increase in disposable income

Marginal propensity to save is the proportion of an increase in income that is saved.

Marginal propensity to save = increase in savings / increase in disposable income

Disposable income is either consumed or saved. so,

Marginal propensity to consume + marginal propensity to save = 1

Marginal propensity to consume = $64 / $80 = 0.8

Marginal propensity to save = $16 / $80 = 0.2

I hope my answer helps you

7 0

3 years ago

Read 2 more answers