If Janet decides to wear her favorite red shirt instead of her favorite blue dress, she is making what?

Each statement below is part of an economic model. Indicate whether the statement is a prediction of cause and effect or an assu

aivan3 [116]

Answer:

(a) Assumption

(b) Cause and Effect

(c) Cause and effect

(d) Assumption

Explanation:

(a) People behave rationally: Assumption

Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.

(b) Cause and Effect

If a price of goods falls that is a cause and the effect is that people will consume more of the good.

(c) Cause and effect

As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.

(d) Assumption

The maximization of profit is based on the assumption of theory of production and costs.

4 0

3 years ago

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Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro

aleksandrvk [35]

Answer: ke = D1/Po + g

0.1025 = D1/57.50 + 0.06

0.1025-0.06 = D1/57.50

0.0425 = D1/57.50

D1 = 0.0425 x 57.50

D1 = $2.444

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

6 0

3 years ago

15pts-- multiple choice!

katrin2010 [14]

Answer: bonds
Explanation: will allow for a risk free option and to gain money from a little bit of time and money
(not 100% sure on answer but I believe it is bonds)

6 0

3 years ago

Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?

Annette [7]

It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices and interest rates go in opposite directions so bond prices will rise when recession starts.

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3 years ago

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On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was c

lutik1710 [3]

Answer:

$207,800

Explanation:

Date Expenditure Weight Average

January 1 $980,000 12/12 $980,000

March 31 $1,580,000 9/12 $1,185,000

June 30 $1,256,000 6/12 $628,000

Sept. 30 $980,000 3/12 $245,000

Dec. 31 $780,000 0/12 $0

Total $3,038,000

Calculation of average interest rate for general debt

Amount Rate Interest

Bonds $8,000,000 11% $880,000

Long term rate $2,000,000 6% $120,000

Total $10,000,000 $1,000,000

Average interest rate = $1,000,000 / $10,000,000

Average interest rate = 10%

Calculation of interest capitalized

Note: General debt = $3,038,000 - $2,400,000 = $638,000

Average Interest rate Capitalized interest

Specific debt $2,400,000 6% $144,000

General debt $638,000 10% $63,800

Total $207,800

7 0

3 years ago