Consider the following statement: "A consistent countercyclical policy has no effect on employment and output, since individuals will recognize those policies as systematic and will anticipate them correctly." This statement is most closely associated withSelect one:
a. classical theory.
b. Keynesian theory.
c. new classical theory.
d. monetarist theory.
Answers
Answer:
c. new classical theory.
Explanation:
The new classical theory belives that grow, countries must open their economies, entrepreneurial development (risk taking), privatize state owned enterprises, and reform labor markets, such as by decreasing the authority of trade unions.
Moreover it also focused that there is no effect on the employment and the result or outcome as individuals recognized the policies in the correct way so that it helps to anticipate them
Hence, the third option is correct
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A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices
Determining Financial Statement Effects of Write-Offs and Bad Debt Expense Using the Allowance MethodUsing the following categories, indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) During the period, customer balances are written off in the amount of $10,000. At the end of the period, bad debt expense is estimated to be $8,000.
How much would $1, growing at 3.5% per year, be worth after 75 years? a. $12.54b. $13.20c. $13.86d. $14.55e. $15.28
Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2016, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date, $8 per share. Options cannot be exercised prior to January 1, 2018, and expire December 31, 2022. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Because the plan does not qualify as an incentive plan, Walters will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The income tax rate is 40%.Required: 1. Determine the total compensation cost pertaining to the stock option plan. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)2. Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)1. Record compensation expense on December 31, 2016.2. Record any tax effect related to compensation expense recorded in 2016.3. Record compensation expense on December 31, 2017.4. Record any tax effect related to compensation expense recorded in 2017.5. Record the exercise of the options on March 20, 2021 when the market price is $12 per share.6. Record any tax effect related to the exercise of the options.
Answers
If they increase taxation, more money will come into the state fund, and if they decrease spending, more money will actually stay there.
Answers
The net profit or loss from buying the call should be $3.17 and -$7.55.
Calculation of stock price per share:
here, a Stock price higher than the strike price option will be exercised.
Net profit = Stock price - Strike price - Option premium
= $110.72 - $100 - $7.55
Net profit = $3.17
Stock price is lower than the strike price option will fail.
Net profit = Stock price - Strike price - Option premium
= 0 - $7.55
Net profit(loss) = -$7.55
Learn more about net profit here: brainly.com/question/24364525
Answers
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
b) False
Answers
Inflation premium 5
Risk premium 4
Total return 13 %
Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 15 years remaining until maturity. Use Appendix B and Appendix D.
Answers
Answer:
"1143.817" is the appropriate answer.
Explanation:
According to the question:
Risk premium is:
=
=
K = N
⇒ Bond Price =
K = 15
On putting the values, we get
⇒ Bond Price =
=
Answers
Answer:
The number of shares that will be outstanding after the stock dividend is 424,000 shares.
Explanation:
This can be calculated as follows:
Number of shares outstanding before the stock dividend = 400,000
Percentage increase in the number of outstanding shares after stock dividend = 6%
Number of increase in the number of outstanding shares after stock dividend = Number of shares outstanding before the stock dividend * Percentage increase in the number of outstanding shares after stock dividend = 400,000 * 6% = 24,000
Therefore, we have:
Number of shares outstanding after the stock dividend = Number of shares outstanding before the stock dividend + Number of increase in the number of outstanding shares after stock dividend = 400,000 + 24,000 = 424,000
Therefore, the number of shares that will be outstanding after the stock dividend is 424,000 shares.
Final answer:
After a 6% stock dividend, CBA Inc will have 424,000 shares outstanding. A stock dividend increases the number of shares but doesn't change the overall worth of the company.
Explanation:
CBA Inc currently has 400,000 shares outstanding. When a company declares a stock dividend, it increases the number of shares outstanding. In this case, the company is declaring a dividend that will increase the total shares by 6%. Therefore, to find the total shares after the dividend you multiple the current shares by 1.06 (the 1 accounts for the original amount and the 0.06 for the increase).
So, 400,000 shares * 1.06 = 424,000 shares
A key point to remember is that a stock dividend does not change the overall worth of the company, it simply divides the total value over more shares. Therefore, while the number of shares has increased, the value per share would decrease assuming the total value of the company remains the same.
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