Answers
Answer:
Only changes in the amounts being produced is the correct answer to this question.
Explanation:
Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.
Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.
Final answer:
Changes in real GDP reflect both changes in prices and changes in the amounts being produced.
Explanation:
Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.
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Related Questions
The rate on T-bills is currently 5%. P. Tree Company stock has a beta of 1.69 and a required rate of return of 15.4%. According to CAPM, determine the return on the market portfolio.
On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were issued for $359,378, priced to yield 8%. What is the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1
The following information relates to year-end adjusting entries as of December 31, 2021. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,660. Six months’ of the one-year insurance policy purchased on July 1 has expired. Four months of the one-year rental agreement purchased on September 1 has expired. Of the $1,000 of office supplies purchased on July 4, $300 remains. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. Of the $2,100 of racing supplies purchased on December 12, $110 remains. Suzie calculates that the company owes $13,900 in income taxes.
A sudden fall in the market demand in a competitive industry leads to a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price higher than the short run price c. Some firms exiting the market d. All of the above
Answers
Answer:
Payback period = 2.5 years
Explanation:
given data
Year 0 1 2 3
cash -$500 $150 $200 $300
to find out
What is the project's payback
solution
Year Cash flows Cumulative Cash flows
0 500 500
1 150 350
2 200 150
3 300 150
so
Payback period = Last period with a negative cumulative cash flow +(Absolute value of cumulative cash flows at that period ÷ Cash flow after that period) .........................1
put here value we get
so
Payback period =
Payback period = 2.5 years
Final answer:
The payback period for the project is approximately 2.75 years.
Explanation:
The payback period is a financial metric used to assess the time it takes for an investment or project to generate enough cash flows to recover the initial investment cost. It's a simple tool for evaluating the risk and return of an investment, with shorter payback periods generally indicating lower risk. The payback period is the amount of time it takes to recover the initial investment in a project.
To calculate the payback period, we sum the cash flows until we reach or surpass the initial investment.
In this case, the initial investment is $500, and the cash flows are: $150, $200, and $300 in years 1, 2, and 3 respectively.
By adding the cash flows together, we find that the project's payback is 2 years and 25% of year 3, which is approximately 2.75 years.
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May 15 Purchase 400 shares of treasury stock for $26 per share.
July 10 Reissue 200 shares of treasury stock purchased on May 15 for $31 per share.
October 15 Issue 200 shares of preferred stock for $36 per share.
December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)
December 31 Pay the cash dividends declared on December 1.
Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2018, is $9,900.
Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger:
Required:
1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
2. Prepare the statement of stockholders' equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answers
Answer:
Explanation:
Attached herewith is a picture that explains all that is needed concerning this question. Thank you and i hope it helps you as you go through
Final answer:
The stockholders' equity section of the balance sheet as of December 31, 2018, shows Preferred Stock: $60,000, Common Stock: $64.00, Additional Paid-in Capital: $125,600, Treasury Stock: ($6,400), Retained Earnings: $ 50,420, and Total Stockholders' Equity: $229,680. The statement of stockholders' equity for the year ended December 31, 2018, shows the effects of the various transactions during the year, including stock issuances, treasury stock purchases and reissues, net income, and cash dividends declared.
Explanation:
Stockholders' equity section of the balance sheet as of December 31, 2018:
- Preferred Stock: $60,000
- Common Stock: $64.00
- Additional Paid-in Capital: $125,600
- Treasury Stock: ($6,400)
- Retained Earnings: $50,420
- Total Stockholders' Equity: $229,680
Statement of Stockholders' Equity for the year ended December 31, 2018:
- Beginning Balance: $31
- Additional Paid-in Capital: $125,600
- Common Stock Issuance: $33,000
- Treasury Stock Purchase: ($10,400)
- Treasury Stock Reissue: $6,200
- Preferred Stock Issuance: $7,200
- Net Income: $9,900
- Cash Dividends Declared: ($2,640)
- Ending Balance: $229,680
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Camera $11,200 $10,000
Camcorders 7,700 8,800
DVDs 13,900 12,700
Compute the lower-of-cost-or-net realizable value for company's inventory.
Answers
Answer:
$30,400
Explanation:
The computation of the lower-of-cost-or-net realizable value is shown below:-
Inventory Cost Net realizable value Lower cost
Camera $11,200 $10,000 $10,000
Camcorders $7,700 $8,800 $7,700
DVDs $13,900 $12,700 $12,700
The Lower cost $30,400
Final answer:
To compute the lower-of-cost-or-net realizable value for the company's inventory, compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value.
Explanation:
To compute the lower-of-cost-or-net realizable value for the company's inventory, you need to compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value. In this case, the cost data and market data are given for each category.
- For the Camera inventory category, the cost is $11,200 and the NRV is $10,000. The lower value is $10,000.
- For the Camcorders inventory category, the cost is $7,700 and the NRV is $8,800. The lower value is $7,700.
- For the DVDs inventory category, the cost is $13,900 and the NRV is $12,700. The lower value is $12,700.
Therefore, the lower-of-cost-or-net realizable value for the company's inventory is $10,000 for the Camera category, $7,700 for the Camcorders category, and $12,700 for the DVDs category.
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Answers
Answer:
The correct answer is the third option: A global strategy would be appropiate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal.
Explanation:
To begin with, in order to understand that using a global strategy is better and more suitable for the company first we need to understand that the company is working in the industry of mobile phones and therefore that is makes great sense to employ a global strategy that is focus on launching the products to the whole world or at least to the greater amount of countries that the company can because when it comes to mobile phones the needs of the consumers in every part tend to be the same and therefore it would no need much customization and the company will be able to release their product globally.
Final answer:
A mobile phone company should employ a transnational strategy because it allows for the application of the same strategic theme while permitting necessary country-specific customization to meet diverse consumer preferences, balancing standardization benefits with local adaptation needs.
Explanation:
If a company's product is mobile phones, it would likely make better strategic sense to employ a transnational strategy. This strategy is appropriate because it allows the company to apply the same strategic theme across different markets while still acknowledging the need for country-specific customization. Conforming to different consumer preferences in mobile phone features across countries is essential, given that tastes and functional requirements may vary significantly. For instance, a mobile phone that is successful in one country may require modifications to suit the network availability, cultural preferences, or legal requirements in another country.
On the other hand, a global strategy assumes a universal demand across all markets, which is not typically the case for mobile phones due to varied consumer needs and standards. Lastly, a multidomestic strategy may result in excessive fragmentation of the product line, undermining the advantages of economies of scale, which multinational companies (MNCs) like mobile phone manufacturers seek to exploit. Therefore, a transnational strategy strikes a balance between standardization and customization, ideal for competing in the international mobile phone market.
Answers
Answer:
d) 6.33
Explanation:
The computation of the expected dividend a year from now is shown below:
As we know that
Price of the stock = Expected dividend ÷ (Required rate of return - growth rate)
Expected dividend = Price of the stock × (Required rate of return - growth rate)
= $63.25 × (0.17 – 0.07)
= $6.325
hence, the correct option is d. $6.33
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Contribution per unit $20 $30 $40
Machine hours per unit 2.5 3.25 4.5
Which of the following would be an accurate conclusion based on these facts?
A. Since Product C has the greatest contribution margin per unit and therefore emphasizing its production and sales will lead to the highest operating income in the short-run
B. Since A takes less time to produce, maximization of operating income will occur by emphasizing production and sales of A.
C. A balanced mix of 1/3 A, 1/3 B, and 1/3 C should be the goal when maximizing operating income in the short-run.
D. Product B should be emphasized if the goal is to maximize contribution margin.
Answers
Answer:
D
Explanation:
A B C
Contribution per unit 20 30 40
Machine hours per unit 2.5 3.25 4.5
Contribution per hour 8 9.23 8.89
Product B has the highest contribution per hour .
It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.
Therefore product B should be emphasized if the goal is to maximize contribution margin.