Answer:
a. The situation can be shown with a normal equilibrium supply and demand graph (as shown in the attached file).
b. There is a shift in demand from left to right due to the crowding out of the deficit budget.
Explanation:
If the government is running a deficit budget, there will be an increase in the total demand for loanable funds. This is because the government must borrow money to balance the situation. As a result, the interest rate will increase. However, the private demand will remain the same and investment will be less due to the high interest rate.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Explanation:
Opening units 0
Started 56000
56000
Transffered 30000
Closing 26000
Production Table
Using Weighted Average Method
Cost Element Complete Closing WIP Equivellant production units
Material 30,000 26,000 56,000
Labour Cost 30,000 19,500 49,500
Answer:
D. $300
Explanation:
The goodwill is computed below:
Carrying value = Purchase price - Total owners equity - excess value of an assets
= $4,000 - $2,000 - $500
= $1,500
The implied value = Total market value - market value of its net identifiable assets
= $3,200 - $2,000
= $1,200
So, the difference is
= $1,500 - $1,200
= $300
The difference is term as a goodwill
Answer:
The firm's PEG ratio is equal to 5.93
Explanation:
A valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth are referred to as the 'PEG ratio' (price/earnings to growth ratio).
Generally, a company with a higher growth rate would have a higher P/E ratio.
PE ratio = Stock price/EPS
= 23.4/1.36
PE ratio = 17.205
PEG ratio = PE ratio/ Earning growth ratio
= 17.205/2.9
PEG ratio = 5.93
