The real inflation tax paid by Maria for the second year is $100
At the beginning of the second year, the real value of the $1,000 is $900.
This is because the inflation rate of 10% over the year has caused the purchasing power of the money to decrease by 10%.
Therefore, the real inflation tax paid by Maria for the second year is $100, which is the difference between the original $1,000 and the real value of the money after one year of inflation.
The rate at which prices increase over a specific time period is known as inflation.
Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living. But it can also be computed more precisely for some products, like food, or for services, like a haircut, for instance.
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Why do many food processing companies package their food products in tamper resistant containers?
Many food processing companies package their food products in tamper resistant containers, it assures customers of the integrity of the product especially for pharma companies.
The tamper resistant containers refers to the packaging having an indicator or barrier to entry that could reasonably be expected to provide visible evidence that tampering had occurred.
The tamper resistant containers is designed to resist opening and access to the product within the container. In the one way, that organizations in the food and beverage industry as well as pharma companies, cosmetics and other industries.
These companies are making their product packages resistant to tampering is by using shrink film.
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zelo, inc. stock has a beta of 1.23. the risk-free rate of return is 4.5% and the market rate of return is 10%. what is the amount of the risk premium on zelo stock
The risk premium on the zelo stock is 6.765%.
According to the capital asset pricing model (CAPM), the risk premium on a stock is calculated as:
stock risk premium = stock beta * market risk premium
stock risk premium = 1.23 * (10% - 4.5%)
stock risk premium = 6.765%.
The needed return on an asset is calculated using the capital asset pricing model as the product of the risk free rate and the asset's risk premium. The beta parameter of an asset serves as a summary of its market risk, and the asset's risk premium is the product of its beta and market risk premium. The relationship between systemic risk, or the general dangers of investing, and expected return for assets, particularly equities, is described by the Capital Asset Pricing Model (CAPM).
A linear link between the needed return on an investment and risk is established by this financial model. The relationship between an asset's beta, the risk-free rate (usually the interest rate on Treasury bills), and the equity risk premium, or the projected return on the market less the risk-free rate, serves as the foundation for the model.In order to quantify this systematic risk, CAPM was developed. It is frequently used in the financial industry to value hazardous securities and calculate projected returns for assets given their risk and cost of capital.
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What is the most important feature of a checking account?
Managing and administering large amounts of money, this is the most important feature of a checking account.
A checking account is an account that allows you to receive large amounts of money and make payments directly, in addition to making electronic transfers and handling checks.
What is a bank account?It is a financial contract that a person or a company has with a bank that is managed virtually or physically, bank accounts are intended to store the financial income of individuals in order to manage them.
It is possible to open a checking account or a savings account, the checking account is the one that allows to deposit funds immediately and the savings account is the one that allows to save in time and to generate interest.
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irawaddy company, a retailer, had cost of goods sold of $230,000 last year. the beginning inventory balance was $45,000 and the ending inventory balance was $47,000. the company's average sale period was closest to:
The company's average sale period was closest to Inventory velocity period by the help of cost of goods sold to average inventory i.e. 72 Days.
What is cost of goods sold?The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution.
Calculating Inventory Turnover ratio or Inventory velocity period, cost of goods sold play important role, this can be understand in the following manner (assuming 360 days operating days in a year):
a) Inventory Turnover ratio is a reciprocal of Velocity period, which is near to average sales period:
b) Velocity period = (Average Inventory ÷ Cost of Goods sold)× 360 Days
= [{($45000+$47000)÷2} ÷ $230,000]×360 days
= 72 Days
Cost of goods sold = $230,000the beginning inventory balance was $45,000the ending inventory balance was $47,000Thus the company's average sale period was closest to inventory velocity period 72 days.
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Suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed ______.
If the demand for U.S. dollars decreases, the Fed would likely buy dollars to raise the exchange rate back to the target rate of 90 yen per dollar.
This would be the case because when demand for a currency decreases, its value also decreases, so in order to maintain the target exchange rate, the Fed would need to intervene by buying dollars to increase its value and bring the exchange rate back to the target rate. Therefore, the correct answer is option A: "buys dollars to raise the exchange rate."
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Complete Question:
Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90 yen per U.S. dollar. If the demand for U.S. dollars decreases, the Fed ______
A. buys dollars to raise the exchange rate
B. sells dollars to raise the exchange rate
C. sells dollars to lower the exchange rate
D. buys dollars to lower the exchange rate
glass co. had net income of $70,000 during the year. depreciation expense was $10,000. the following information is available: accounts receivable increase $20,000 equipment gain on sale (sale price $100,000) 10,000 increase nontrade notes payable increase 50,000 equipment purchases 40,000 increase accounts payable increase 30,000 what amount should glass report as net cash provided by investing activities in its statement of cash flows for the year?
Glass Co. earned $70,000 in net income for the year. The cost of depreciation was $10,000. The following is a statement of cash flows for the entire year.
What does the annual cash flow statement look like?Equipment purchases and sales are considered investing activities.Equipment was purchased for $40,000, but it was also sold for $100,000. $60,000 is the net cash inflow ($100,000 - 40,000).
What exactly does "cash flow" mean?The movement of money into and out of a business is known as cash flow. Cash spent indicates outflows, whereas cash received indicates inflows. A financial statement that details the sources and uses of a company's cash over time is called a cash flow statement. But profit is the money you have left over after subtracting your business expenses from overall revenue.
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The __________ method is a framework for operationalizing a firm's strategic plan by focusing on measurable outcomes based on for dimensions of a firm's performance.
The Balanced scorecard method is a framework for operating a firm's strategic plan.
The Balanced scorecard is a management performance metric used to identify and improve the company's internal operations to help in managing their external outcomes.
It forms an important part of managing the internal factors which can be controlled and helps to measure past performance data as well as provides feedback to make better decisions. Used to measure and provide feedback to organizations.
It was developed for profit, non-profit, and government organizations. It helps companies to pool information in a single report.
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your package is moving within the usps network and is on track to be delivered to its final destination. it is currently in transit to the next facility.
True. The package that is still in transit is one that is still on its way to the place that it would be delivered to the consumer.
What does it mean for a package to be in transit?Your package is "in transit" if it is traveling to its destination. Your cargo may not actually be in a moving vehicle like a truck or an airplane.
"In transit" can refer to a shipment that has just left the pickup facility, is halfway between two hubs, or is already traveling to your location. In conclusion, if your package or order is "in transit," it simply implies that everything is on track for delivery and that you should get it shortly.
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your package is moving within the usps network and is on track to be delivered to its final destination. it is currently in transit to the next facility. True / False
true or false: the process to calculate a portfolio's beta is opposite of the process to calculate a portfolio's expected return.
The process to calculate a portfolio's beta is opposite of the process to calculate a portfolio's expected return is false.
What is the expected return of a portfolio?The weighted average rate of return for all the assets in the portfolio is the projected return for the portfolio. Simply multiplying each asset's rate of return by its corresponding percentage will yield the weights, which show the percentage of the overall investment portfolio that is invested in each asset.
An investment's expected return is the expected value of the probability distribution of the potential profits it might offer investors. The expected return of a portfolio is the total expected return of all the assets, weighted by their respective proportion. The weighted average of the returns on each asset in a portfolio is the expected return for that portfolio.
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The return of your portfolio is 7.6875.
Explanation:
To calculate the return of your portfolio, you need to multiply the weight of each stock by its respective return and then sum up these weighted returns.
Let's calculate:
Walmart: 15% * 12.53 = 1.8795Disney: 25% * 8.83 = 2.2075Oracle: 35% * 13.53 = 4.7455NBC: 25% * -4.58 = -1.145Now, sum up the weighted returns:
1.8795 + 2.2075 + 4.7455 - 1.145 = 7.6875
Therefore, the return of your portfolio is 7.6875.
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Approximately how long after the big bang did the era of nucleosynthesis end, marking the time when the basic chemical composition of the universe was determined?
Approximately The Era of nucleosynthesis lasted until 3 minutes after the Big Bang marking the time when the basic chemical composition of the universe. This predicted by Big Bang theory.
The process of creating new atomic nuclei—the protons and neutrons that make up the centers of atoms—is known as nucleosynthesis. Within a few minutes after the Big Bang, the process of nucleosynthesis began. Protons and neutrons were created at that moment from a quark-gluon plasma, a mixture of quarks and gluons.
The Big Bang Nucleosynthesis theory predicts that about 25% of the universe's mass will be made up of helium. Approximately 0.01% deuterium and even lower amounts of lithium are also predicted. The density of baryons at the moment of nucleosynthesis has a significant impact on the prediction. The required density of baryons is a few percent in terms of the critical density of matter that exists now.
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Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of
a. the primary duties of the jobs.
b. all of the choices.
c. a seniority or merit system.
d. any factor other than gender.
Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of
the primary duties of the jobs.seniority or merit system.any factor other than gender.The Option B is correct.
What did the Equal Pay Act provide?
Fully known as the Equal Pay Act of 1963, was a United States labor law amending the Fair Labor Standards Act, aimed at abolishing the wage disparity based on s-ex. It was signed into law on by John F. Kennedy as part of his New Frontier Program.
In passing the bill, Congress stated that sex discrimination depresses wages and living standards for employees necessary for their health and efficiency, prevents the maximum utilization of the available labor resources, cause labor disputes thereby burdening, affecting, and obstructing commerce, burdens commerce and the free flow of goods in commerce and constitutes an unfair method of competition.
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What are examples of transition economy?
Countries such as the People's Republic of China and Vietnam adopt a gradual transition model, but Russia and some other Eastern European countries, such as the former Socialist Republic of Yugoslavia, use a transition model.
Change more actively and faster. Countries economies in transition are considered countries that are undertaking macroeconomic reforms with the aim of changing the way their Socialist economies operate. This has traditionally involved the country making structural adjustments from a state-run economy to a more market-oriented system. Countries with economies in transition (CEIT) are the countries of the former Soviet Union and the countries of Central and Eastern Europe.
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when considering perfect competition, the absence of entry barriers implies that:_____.
Option d. Firms can enter and leave the industry without serious impediments is the correct answer. When considering perfect competition the absence of entry barriers implies that firms can enter and leave the industry without serious impediments.
The restrictions imposed on the firms to enter the market to sell their products are known as entry barriers. Entry barriers reduce the level of competition between the firms in the market.
Option d. Firms can enter and leave the industry without serious impediments is correct.
It is a correct option because when there are no entry barriers, the firms in that industry can enter the market anytime and they do not have to deal with any sort of impediments. Firms with no entry barriers are not restricted from entering the market.
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a book store opens across the street from the university book store (ubs). the new store carries the same textbooks but offers a price 20 percent lower than ubs. if the cross-price elasticity is estimated to be 1.5, and ubs does not respond to its competition, how much of its sales is it going to lose?
If the new retailer offers the same textbooks at a price 20 percent less than UBS, if the cross-price elasticity is determined to be 1.5, and if UBS does not react to its competition, it will lose 30% of sales.
Given:
Offer a price 20 percent lower than UBS
The cross-price elasticity is estimated to be 1.5
The sales is it going to lose = 20% × 1.5 = 30%
UBS is a global investment bank based in Switzerland.It was created by the amalgamation of Swiss Bank Corp. and Union Bank of Switzerland.Investment & retail banking and asset & wealth management are two of UBS's primary business segments.Swiss private bank accounts are facilitated by its retail banking division.About $4.8 billion in assets are being managed by the organization.One of its predecessor companies, the Union Bank of Switzerland, is where the term UBS originates.The Union Bank of Switzerland and Swiss Bank Corporation amalgamated in 1998, giving rise to the current UBS.As a result, UBS is now used as the organization's official name rather than as an acronym.UBS offers goods and services to a wide range of customers through a number of significant divisions.Learn more about UBS, here
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keynes explained that recessions and depressions occur because of keynes explained that recessions and depressions occur because of excessive aggregate supply. inadequate aggregate demand. inadequate aggregate supply. excessive aggregate demand. excessive investment spending
Option B is correct, Keynes recessions and depressions occur because of inadequate aggregate demand.
The aggregate demand curve is plotted with actual output on the horizontal axis and the fee degree on the vertical axis. at the same time as it is theorized to be downward sloping, the Sonnenschein–Mantel–Debreu results display that the slope of the curve cannot be mathematically derived from assumptions approximately man or woman rational behavior. instead, the downward-sloping combination demand curve is derived with the help of 3 macroeconomic assumptions approximately the functioning of markets: Pigou's wealth effect, Keynes' hobby fee effect, and the Mundell–Fleming exchange-fee impact. The Pigou impact states that a better fee stage implies a decrease in actual wealth and consequently lower consumer spending, giving a lower quantity of products demanded inside the aggregate.
The Keynes effect states that a higher price level implies a decrease in actual money delivery and therefore better hobby prices because of financial market equilibrium, in turn ensuing in lower investment spending on new physical capital and therefore a decreased amount of goods being demanded within the aggregate.
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if the economy is currently in short-run equilibrium at point a, what type of monetary policy would be most effective to bring the economy back to long-run equilibrium?
Because producers are inflexible in the short term and unable to alter fast in response to market forces, they will gradually modify prices and wages.
By the time the economy reaches its potential GDP, wages, prices, and resource costs will have fully adjusted, moving the short-run supply curve to its long-term level. When total output and total demand are equal, this is referred to as short-run equilibrium. When prices respond to market changes and the economy is operating at its maximum potential, long-run equilibrium has been reached.
When the total amount of output required and supplied equals one another, an economy is in short-run equilibrium.
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which of the following is a reason to worry about government debt? future generations can help repay the debt. high and rising debt slows economic growth. the government never really needs to repay the debt. most of the debt is domestic debt.
The reason to worry about government debt is: b. high and rising debt slows economic growth.
What is government debt?
Government debt can be defined as the loan amount or debt amount that a country government borrowed from another nation or country. Government debt tend to occur in a situation where the accumulated budget deficits is higher than the accumulated budget surpluses.
A nation should tend to worry about government debt because high and rising debt can slow down economic growth or lead to decline in the economy growth of that nation.
Therefore the correct option is B.
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concept testing involves taking a product idea to consumers to test their reactions. concept testing involves taking a product idea to consumers to test their reactions. false true
The process of taking a product idea to consumers to test their reactions is known as product screening.
What is consumers?Product concept tests are a type of market research that provide important early-stage information into how customers will react to product, design, and marketing ideas. Concept testing can help you fine-tune the finished product and determine what connects with consumers before you devote time, resources, and manufacturing hours. When you create a product, you do so with the expectation that consumers will find it appealing. Simply put, product concept testing aids in the verification of that presumption.It enables you to get rid of terrible ideas If your team is considering several product concepts, concept testing can assist you in determining which (if any) may be useful to clients. Bad ideas can be expensive to pursue, and if they receive enough attention, they may harm the reputation of your business. You may conserve resources and money by conducting market research on your ideas before they are developed. This will help you weigh opposing viewpoints intelligently and make wise conclusions.You save time and money: Concept testing does take more time throughout the development process, but consider how much time and money you'll save by only buying things that have been examined (and approved) by a test group.
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double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to partnerships. true false
Double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to partnerships.
The given statement is False.
What do you mean by double taxation?
Due to the fact that corporations must pay income taxes at a rate that is double that of partnerships, double taxation is a disadvantage to corporations. A corporation may deduct the cost of cash dividends as an expense.The following are a corporation's drawbacks:Income is taxed twice. Shareholders pay taxes a second time on dividends.To know more about Taxation here
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Which financial statement conveys a company's ability to generate profits in the current period?
A. income statement
B. statement of cash flows
C. Balance sheet
D. Statement of stockholders equity
Income statement conveys a company's ability to generate profits in the current period.
Hence, Option A is correct
An income statement is a financial statement that lists the revenue and expenses of the company. Additionally, it displays a company's profit or loss over a specific time frame. You may better comprehend your company's financial situation by comparing the income statement to the balance sheet, cash flow statement, and cash flow forecast.An income statement displays the revenues, costs, and profitability of a business over time. It is also sometimes referred to as an earnings statement or a profit-and-loss (P&L) statement. It displays your sales revenue for goods and services. expenses for running your firm and generating money.To know more about Income statement here
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needs to raise $60 million and wants to issue 15-year zero-coupon bonds for this purpose. assume the required return on the bond issue will be 4.8% the tax rate is 21%. the par value of each bond is $1000. how many bonds would the company need to issue to raise the money it requires
In this case, the business needs to issue 121217 Bonds to raise $60 million.
Nike needs to raise $60 million
Par value = $1000 (FV)
Time = 15 years (n0
Return = 4.8% (r)
The bond value is calculated by using the present value formula i.e
P.V = F.V * 1 / (1+r)ⁿ
F.V = $1000
n = 15
r = 4.8%
Bond value = $1000 * [1/(1+4.8%)¹⁵]
Bond Value = $1000 * [1/2.0203]
Bond value = $ 494.98
Calculation on the number of bonds that need to be issued
Number of Bonds = Amount to be raised / Bond value
No. of bonds = 60,000,000/494.98
Number of Bonds = 121217.012 ≅ 121217
Here the company needs to issue 121217 Bonds to raise the amount of $60 million.
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a credit card provider uses a software to determine the likelihood of customers defaulting on their payments. the software assigns a credit score to each customer based on their past transactional records. this software is an example of a(n) system. question 7 options: a) bpr b) ai c) pm d) bi
This credit card provider software is an example of business intelligence (BI) system.
What is business intelligence?Business intelligence (BI) refers to the methods and tools employed by organizations for the administration and analysis of business data. In order to find, develop, and otherwise create new strategic business possibilities, BI technologies can handle huge amounts of structured and occasionally unstructured data. They seek to make these large data easily interpretable. Businesses can gain a competitive market edge, long-term stability, and the ability to make strategic decisions by recognizing new opportunities and putting an efficient plan based on insights into practice. Businesses can utilize business information to inform a variety of decisions, from tactical to strategic. Product positioning or price are examples of fundamental operational decisions. Priorities, goals, and directions are the three main components of strategic business decisions.
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What are the two biggest expenses in the federal budget?
Healthcare and Social Security are the two biggest expenses in the federal budget. And defense is also a major expense for federal budget.
The operational costs a business bears in order to make money are referred to as expenses. Simply put, it is the amount of money necessary to acquire anything. According to a proverb, "making money costs money."
Paying suppliers, paying employees, leasing facilities, and depreciating equipment are examples of frequent costs. To reduce their taxable income and therefore their tax liability, businesses are permitted to deduct tax-deductible expenses on their income tax returns; however, the Internal Revenue Service (IRS) sets tight guidelines on which expenses firms are permitted to claim as a deduction. The major objective of management teams in businesses is to enhance profits. This is accomplished by increasing income while controlling costs.
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using a simulation model allows one to ignore the common assumptions required to use analytical models. group of answer choices true false
It's true that while utilizing a simulation model, one can omit the typical premises needed to employ analytical models one to ignore the common assumptions.
When you assume that something is true or will occur, you accept that it is true or will occur, frequently without any actual evidence. Life's Typical Assumptions I've Never Assumed to be True .I can't wait for retirement. A fruitful life is a busy life. Mothers-in-law are terrible. Money doesn't alter you. Parenting teenagers is miserable. Extended time with extended relatives is to dreaded. Recognizing Assumptions, Worldview assumptions that relate to how you perceive and organize the world are known as paradigmatic assumptions. Prescriptive assumptions are what you believe ought to occur in each circumstance. Causal assumptions have to do with how things operate and how you can influence them.
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the model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the:
The model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the Symmetrical Model.
What do you mean by the public relations?"Public relations is a strategic communication process that creates relationships between organizations and their publics that are beneficial to both parties."
In order to build a stronger brand reputation, public relations entails distributing the appropriate messages to the appropriate audience and target audience. PR firms assist their clients in achieving this goal and promoting them within their respective industries.
An inclusive, non-exploitative celebration of the client's customers is what good PR does. The term "public relations" is used. It is crucial to develop messages and marketing strategies that accomplish more than simply sell. Additionally, effective public relations welcomes criticism, especially from "neutrals," and adjusts tactics accordingly.
Therefore, the model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the Symmetrical Model.
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wireless solutions reports operating expenses of $865,000. operating expenses include both rent expense and salaries expense. prepaid rent increases during the year by $18,000 and salaries payable increases by $14,000. what is the cash paid for operating expenses during the year? (list cash outflows and any decrease in cash as negative amounts.)
Wireless solutions records operating expenses in its cash flow during the year as $869,000.
From the case, we know that Wireless solution has:
Operating expene = $865,000
Increase in prepaid rent = $18,000
Increase in salaries payable = $14,000
In cash flow, every activities that produce money should be recorded as positive amounts and called as cash inflow. Meanwhile any activities that spend and use cash will be recorded in negative amounts and called as cash outflow.
Now let's define the relationship of each increase scenario with cash flow.
Prepaid rent is a form of prepairds expenses. Prepaid expenses are paid ahead of time and being amortized over the time period of benefit. Any increase in prepaid expense means that the current amortization should be greater than the previous expected expense. Any decrease in prepaid expense refers to the lower amortization for the prepaid account than the expected amount. Hence, the increase of prepaid rent will generate more cash outflow.
Liabilities are cash that a company owes to a lender or any third parties to finance the assets or expenses. An increase in liability account means the more available cash to be allocated to another areas. A decrease in liabilities means that the liabilities are paid with cash by the company.
In this case, an increase in salaries payable means that the company holds some cash originally prepaid to pay its emlployees' salaries. It shows an cash inflow movement.
From the explanation above, we could calculate the total operating expense of Wireless solution.
Please note that any cash outflow will be recorded as negative amounts and we are using expenses' perspective.
Total operating expense = Operating expense + increase in prepaid rent - increase in salaries payable
Total operating expense = $(865,000) + $(18,000) - $14,000
Total operating expense = $(869,000) --> cash outflow
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stingy corporation is expected have ebit of $1.2m this year. stingy corporation is in the 30% tax bracket, will report $133,000 in depreciation, will make $76,000 in capital expenditures, and will have a $24,000 increase in net working capital this year. what is stingy's fcff?
The increase in net working of stingy corporation's capital this year is of $873,000.
By using the formula, FCFF = CFO + Int(1 – Tax rate) – FCInv
1,200,000(.7)+133,000-76,000 - 24,000
= 873,000
The amount by which a company's operating cash flow exceeds its demands for working capital and expenditures for fixed assets is known as free cash flow or free cash flow to firm. After depreciation costs, taxes, working capital, and investments are taken into account, FCFF is the cash flow from operations that is available for distribution.
Possibly the most significant financial indication of a company's stock value is free cash flow. A high ratio of price to free cash flow suggests that the company is undervalued. To assess if a company is under- or over-valued in the industry it competes in, its P/FCF should be contrasted to the ratios of other, comparable companies.
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when the fed lowered the discount rate in late 2008, the action was ultimately designed to: multiple choice increase the money supply. increase the prime rate. decrease the monetary base. increase the reserve requirement.
When the Federal Reserve lowers the reserve ratio, which lowers the amount of cash banks must keep in reserves, banks are able to offer more discount loans. The correct answer is increasse in reserve requirements.
One way the Federal Reserve can increase the money supply is by lowering the discount rate.When the discount rate is lower, depository institutions are more inclined to borrow, which increases their reserves and lending activity.By changing the discount rate, the Fed can influence the money supply, which in turn can help to stimulate economic activity or help to restrain inflationary pressures. The Fed will encourage banks to increase lending if it reduces the discount rate.If the Fed lowers its discount rate, the funds will be used to make decisions on monetary policy, open market operations, and purchases of or relating to money or the mechanisms employed to supply and transfer funds within an economy.
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which of the following shifts aggregate demand to the left? a. an increase in the price level b. a decrease in the money supply c. a decrease in the price level d. an increase in the money supply
An increase in the money supply shifts aggregate demand to the left. So, the correct answer is option d.
The correlation between price level and real GDP demand is known as aggregate demand, or AD. While variables affecting the components of GDP (consumption, investment, government expenditure, and net exports) will cause the AD curve to shift, a change in the price level will cause the AD curve to move. A move to the right denotes an increase, whereas a shift to the left denotes a reduction.
As the components of aggregate demand consumption spending, investment expenditure, government spending, and spending on exports minus imports increase, the aggregate demand curve, or AD curve, moves to the right. With the decline of these components, the AD curve will turn back to the left.
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when the owner of cash or commercial paper, such as a check, makes it payable to bearer, who then gives it to a third person, the original owner cannot demand the return of the money from a third party to whom it was given in exchange for something of value. this is an example of:
This is an example of an unconditional order to pay, or an order to pay the bearer.
Commercial paper, inside the global economic marketplace, is an unsecured promissory observation with a fixed adulthood of rarely greater than 270 days. In layperson phrases, it's miles like an "IOU" but may be sold and sold because its customers and sellers have some diploma of self-belief that it may be correctly redeemed later for cash, based totally on their evaluation of the creditworthiness of the issuing employer.
Industrial paper is a money-market protection issued by using big companies to attain finances to satisfy brief-term debt duties (for instance, payroll) and is subsidized only via an issuing financial institution or company promise to pay the face quantity on the maturity date specified on the observe. since it is not sponsored by way of collateral, the best companies with fantastic credit rankings from an identified credit score rating organization might be able to sell their industrial paper at a reasonable charge. industrial paper is usually sold at a discount from face value and generally includes lower hobby reimbursement quotes than bonds because of the shorter maturities of business paper. usually, the longer the maturity on notice, the higher the hobby charge the issuing group will pay. interest prices vary with market conditions but are commonly decreased than banks' quotes.
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