Answers
Answer:
I would issue stock because it is cheaper than borrowing.
Explanation:
First of all, issuing stock does not represent the obligation to pay interest over a long period of time, which can become very expensive if market conditions become adverse. Besides, if the company is small, it probably does not have the most advantageous financial conditions according to the banks, and the interest rate could be relatively high.
Besides, borrowing would mean increasing the liabilities in the financial statements, which could make the company less attractive for future investors.
Issuing stock does have the disadvantage of dilluting control of the company, because now stockholders own a piece of the company and could demand changes in management, and a different company strategy.
Related Questions
Difference between authority and responsibility
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period. Machine Hours Mfg. Overhead April 90,000 $ 170,000 May 80,000 $ 153,000 June 110,000 $ 198,000 July 95,000 $ 181,000 Using the high-low method, compute the fixed element of Olsen's
All of the following are forms of cognitive bias except:_____.A. Confirmation bias: This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions. B. Anchoring: This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information. C. Shifting: This is the bias involved in shifting perspectives too rapidly, thereby forgoing objectivity and sound reasoning. D. Halo effect: This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related. E. Overconfidence bias: This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.
Which of the following accurately describe depreciable cost? i. The amount of cost a company intends to depreciate over the life of the asset? ii. The acquisition cost of the asset. iii. The fair market value of the asset iv. The acquisition cost of the asset less the salvage value.
January 325 5,900
February 375 6,200
March 300 5,650
April 350 5,450
May 275 5,550
June 450 6,250
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)
Answers
Answer:
C = 6.5Q + 3,762.5
Explanation:
High-low method:
We subtract the high from the low:
The difference tell us that 100 untis generate 650 additional cost
So we can calcualte the variable cost:
cost 650 / Unis 100 = variable cost 6.5
Now on low or high we solve for fixed cost:
cost = 6.5 x 375 + fixed cost
Total Cost 6200
Variable 2437.5
Fixed Cost 3762.5
cost = 6.5 x 275 + fixed cost
Total Cost 5550
Variable 1787.5
Fixed Cost 3762.5
the formula will be:
C = 6.5Q + 3,762.5
Answers
The tax that needs to be reduced is $ 4.66 billion
Further Explanation
The amount (Deflationary / recessionary) gap =
Keynesian Spending Multiplier from government spending
k =
Tax Multiplier from tax
t =
Option 1: Increased government spending (Loosening / Expansionary Fiscal Policy) by
GovSpending (Gs) =
Option 2: Tax is reduced by (-)
Tax = =
In economics, deflation is a period in which prices generally fall and the value of money increases. Deflation is the opposite of inflation. If inflation occurs due to a large amount of money circulating in the community, deflation occurs due to a lack of money in circulation. One way to overcome deflation is to reduce interest rates.
In the macroeconomy, a recession is a condition when the gross domestic product (GDP) decreases or when real economic growth is negative for two quarters or more in one year. Recession can result in a simultaneous decline in all economic activities such as employment, investment, and corporate profits. Recession is often associated with falling prices (deflation), or, conversely, sharply rising prices (inflation) in a process known as stagflation. The economic recession that lasts long is called economic depression. The drastic decline in the level of the economy (usually due to severe depression, or due to hyperinflation) is called economic bankruptcy (economic collapse). Columnist Sidney J. Harris distinguishes the above terms in this way: "A recession is when a neighbor loses a job; depression is when you lose a job."
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Deflationary brainly.com/question/13135934
To Reduce Tax brainly.com/question/13135934
Details
Class: College
Subject: Business
Keywords: Deflationary, tax, recessionary
Final answer:
To close the remainder of the recessionary gap, taxes need to be reduced by approximately $11.67 billion.
Explanation:
To close the remainder of the recessionary gap of $10 billion, the government has approved a spending increase of $3 billion. The question asks how much taxes need to be reduced to make up the difference. We can use the concept of the Marginal Propensity to Consume (MPC) to find the answer.
The MPC represents the proportion of additional income that individuals spend. In this case, the MPC is given as 0.6. Therefore, for every additional dollar of income, individuals will spend $0.6.
To determine how much taxes need to be reduced, we can use the formula:
Tax Reduction = (Remainder of Recessionary Gap)/MPC
Substituting the values, Tax Reduction = $7 billion/0.6 = $11.67 billion. Therefore, taxes need to be reduced by approximately $11.67 billion to close the remainder of the recessionary gap.
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he contributes money to a partnership
he applies for a small business loan
he reports investor fraud to the SEC
Answers
The one that can be stated as an example of a businessman who is making an investment is by making a contribution in the form of money to a partnership. Hence, Option B is correct.
What is a businessman?
An individual who owns or has shares in a private sector and engages in commercial or industrial activities to generate cash flow, sales, and income by combining human, financial, intellectual, and physical capital with the goal of sustaining is referred to as a businessman or businesswoman.
Although it is a difficult career path, those who choose business reap the rewards of their labour and have access to employment options in almost every industry.
One may find them in almost any company, managing operations, hiring and firing staff, keeping the books balanced, and managing funds. The one that can be used as an illustration of a businessman investing is by giving a financial contribution to a partnership.
Therefore, Option B is correct.
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Answer:
he contributes money to a partnership
1. Define the data, uncontrollable inputs, and decision variables that influence total inventory cost.
2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost.
3. Implement your model on a spreadsheet.
4. Use data tables to find an approximate order quantity that results in the smallest total cost.
5. Use Solver to verify your result.
6. Conduct what-if analyses to study the sensitivity of total cost to changes in the model parameters.
7. Explain your results and analysis in a memo to the vice president of operations.
Answers
Answer:
Annual Demand = 15,000 units
Cost of each unit = $ 80
Holding Cost = 18% of unit value
Ordering Cost = $ 220 per order
For implementation of a good decision model regarding inventory after considering all type costs assisted to it such as: holding cost and ordering cost, concept of EOQ is applied.
EOQ = ((2 * Annual Demand* Ordering Cost) / (Holding Cost))1/2
= ((2 * 15000 * 220) / (80*18%))1/2
= 677 units
Hence this quantity states that this manufacturing company should reorder the quantity when it has 677 units.
2)Mathematically, costs related to inventory are computed in the following manner:
1) Annual ordering cost = Ordering cost per order * Number of orders in a year
= 220 * 15000/677 = 220 * 22 = 4840
2) Holding cost = Holding cost per unit * Average inventory throughout the year
Average inventory throughout the year = 15,000/12 = 1250 units
Holding cost = 18%* 1250 = 225
Total cost = 4840 + 225 = 5065
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answers
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
Final answer:
In 2019, Tyrone and Akira can deduct $21,500 in home and home equity loan interest, and $2,000 of their investment interest, which adds up to a total deductible interest amount of $23,500.
Explanation:
In 2019, Tyrone and Akira can deduct the Home acquisition debt interest, Home equity loan interest (given it was for home improvements), and Investment interest expense to an extent.
Their Home acquisition debt interest and Home equity loan interest are fully deductible, giving them a total of $21,500 ($15,000 + $6,500) in deductible interest. The credit card interest is non-deductible.
As for the Investment interest expense, it can only be deducted up to the level of their net investment income. Therefore, of their $10,000 investment interest expense, only the $2,000 that corresponds to their net investment income is deductible in 2019. Any leftover deductible interest may be carried over to the next year.
So in total, they can deduct $23,500 ($21,500 + $2,000) in interest in 2019.
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Answers
Answer:
The answer is C. Some firms exiting the market
Explanation:
When there is a sudden fall in the market demand in a competitive industry(e.g perfect competition) some firms would making economic losses and it is best if they shut down operation and production. Once these happen, they exit the market.
Option A is incorrect . Same as option B.
Option D is also incorrect
Final answer:
A sudden fall in market demand in a competitive industry can lead to a short-run market equilibrium price lower than the original equilibrium, some firms exiting the market, and a market equilibrium price higher than the short-run price.
Explanation:
In a competitive industry, a sudden fall in market demand can have several effects. The correct answer is (d) All of the above. When market demand falls, it creates excess supply in the market, leading to a decrease in the market equilibrium price. This means that option (a) is correct. The lower price in the short run may cause some firms to exit the market due to lower profitability, which confirms option (c). Lastly, in the long run, if demand remains low, the market equilibrium price may eventually be higher than the short-run price as the supply adjusts to the lower demand, validating option (b).
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