In the case of an undisclosed principal, a third party

Which of the following is the path through which contractionary monetary policy works? A. Money down implies interest rate up im

Ede4ka [16]

Answer and Explanation:

B. Money down implies interest rate down implies investment down implies income down.

8 0

2 years ago

Ptarmigan Company produces two products. Product A has a contribution margin of $85.80 and requires 11 machine hours. Product B

natali 33 [55]

Answer:

Product A $7.80

Explanation:

Calculation to Determine the most profitable product assuming the machine hours are the constraint.

PRODUCT A PRODUCT B

Contribution margin per unit $85.80 $107.80

÷Machine hours 11 14

=Contribution margin per bottle neck hour

$7.80 $7.70

Based on the above calculation Product A is the most profitable because product A profit Amount of $7.80 is higher than that of product B.

8 0

2 years ago

Dmitri recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from

Lelechka [254]

Answer:

B. FALSE

Explanation:

This economy is currently at its natural rate of unemployment because there is no cyclical unemployment

In macroeconomics, full employment is the level of employment rates where there is no cyclical or deficient-demand unemployment.

The economy is considered to be at full employment when the actual unemployment rate is equal to the natural rate.

Hence, it is false to allege that the economy in the given scenario is not currently at its natural rate of unemployment

7 0

2 years ago

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,400,000. Also, at year-

Ksenya-84 [330]

Answer:

The Sales will increase by $350,000 (2000,000 * 17.5%)

Explanation:

As we know that,

Self Supporting Growth Rate = Return on Equity * (1 - Payout Ratio) ...Eq1

Here

Payout ratio given is 50%

and

Return on Equity = 35% (Step 1)

By putting values in Eq1, we have:

Self Supporting Growth Rate = 35% * (1 - 50%)

Self Supporting Growth Rate = 17.5%

Which means that Sales will increase by $350,000 (2000,000 * 17.5%) which is 17.5%.

Step 1: Find Return on Equity

We know that:

Return on Equity = Net Income / Equity ..............Eq2

As we are not given value of Net Income we can not calculate the value of return on equity. But there is another way that we can calculate by simply multiplying and dividing by sales on Left hand side of the Eq2 equation.

Return on Equity = Net Income / Equity * Sales / Sales

By rearranging, we have:

Return on Equity = Net Income / Sales * Sales / Equity

Now here,

Net Income / Sales = Profit Margin

By putting this in the above equation, we have:

Return on Equity = Profit Margin * Sales / Equity

Here

Profit Margin is 7% given in the question.

Sales were $2,000,000

And

Equity is $400,000 (Step 2)

By putting values, we have:

Return on Equity = 7% * $2,000,000 / $400,000

Return on Equity = 35%

Step 2. Find Equity

Equity = Assets - Liabilities

Here,

Assets are worth $1,400,000

Liabilities are standing at $1,000,000 which includes only current liabilities because company doesn't have any long term borrowings

By putting the values, we have:

Equity = $1,400,000 - $1,000,000 = $400,000

Brother, don't forget to rate the answer.

5 0

2 years ago

MM Proposition I with corporate taxes states that:

OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

8 0

2 years ago