The school of thought that believes that recessions are the result of inappropriate monetary policy is the monetarist school of thought. Monetarists are economists who believe that changes in the money supply have a significant impact on the overall level of economic activity.
They believe that the main cause of economic fluctuations, including recessions, is inappropriate monetary policy by the central bank.Monetarists argue that central banks can control the money supply and interest rates, which in turn can influence economic activity. They believe that if the central bank increases the money supply too rapidly, it can lead to inflation, while if it decreases the money supply too quickly, it can cause a recession. Therefore, they advocate for a stable and predictable monetary policy that ensures a steady growth of the money supply and a moderate level of inflation.On the other hand, classical economists believe that recessions are the result of market imbalances, particularly in the labor market, and that the economy will eventually self-correct through the mechanism of supply and demand. Keynesian economists, on the other hand, believe that recessions are caused by insufficient aggregate demand and advocate for government intervention to stimulate demand through fiscal policy.
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The profit graph allows users to easily identify: (Check all that apply.)
a) the profit at any given sales volume.
b) the sales volume required to reach the break-even point.
c) total expenses incurred at any given sales volume.
The profit graph provides valuable information to businesses as it helps users to identify various aspects related to profits. Users can easily determine the profit at any given sales volume.
The profit graph is a graphical representation of the profits earned by a business at different sales volumes. It plots the total revenue and total expenses incurred by the business against the sales volume, which helps in analyzing the profitability of a business. By looking at the profit graph, users can easily identify the profit earned at any given sales volume. This information can be used to make informed decisions regarding pricing strategies and determining the optimum sales volume to maximize profits.
Moreover, the profit graph also helps users in identifying the break-even point. The break-even point is the point where the business earns enough revenue to cover all its expenses, and its profit is zero. By looking at the profit graph, users can determine the sales volume required to reach the break-even point. This information is critical for businesses as it helps them in setting sales targets and in making important decisions regarding pricing and cost management.
However, the profit graph does not provide information on the total expenses incurred at any given sales volume. It only represents the total expenses incurred by the business against the sales volume. To calculate the total expenses at any given sales volume, users need to look at the detailed financial statements of the business. Nonetheless, the profit graph is a valuable tool that provides critical information to businesses, helping them to make informed decisions and achieve profitability.
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suppose that a small-town theater has six potential customers and is looking to implement price discrimination depending on when customers want to attend. suppose the marginal cost of serving an additional customer is $1.50. the data provide information about the time of attendance and willingness to pay for a ticket.what should the theater charge for evening tickets?$what should the theater charge for matinee tickets?
The theater should charge a price for evening and matinee tickets based on the average willingness to pay of its customers plus the marginal cost of serving an additional customer.
Based on the given information, the small-town theater is planning to implement price discrimination to maximize their revenue. To do this, the theater will charge different prices for evening and matinee tickets depending on customers' willingness to pay.
Step 1: Determine the willingness to pay for evening and matinee tickets among the six potential customers. You will need to gather data about each customer's preferred time of attendance and the maximum price they are willing to pay for a ticket.
Step 2: Calculate the average willingness to pay for each category (evening and matinee). Add up the willingness to pay for each category and divide by the number of customers in that category.
Step 3: Add the marginal cost of serving an additional customer, which is $1.50, to the average willingness to pay for each category. This will help cover the costs while still maximizing revenue.
Step 4: The theater should charge the resulting amount for each category. For example, if the average willingness to pay for evening tickets is $10, the theater should charge $11.50 for evening tickets ($10 + $1.50). If the average willingness to pay for matinee tickets is $6, the theater should charge $7.50 for matinee tickets ($6 + $1.50).
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is the yen selling at a premium or a discount?is the australian dollar selling at a premium or a discount?do you expect the value of the dollar to increase or decrease relative to the value of the yen?do you expect the value of the dollar to increase or decrease relative to the value of the australian dollar?
Currently, it is difficult to determine whether the yen is selling at a premium or a discount as it depends on various factors such as economic conditions, political events, and global market trends.
However, generally speaking, the yen is known to be a safe-haven currency and tends to appreciate during times of global economic uncertainty or geopolitical tensions. Conversely, during periods of economic stability or growth, the yen may be seen as less attractive and may weaken in value.As for the Australian dollar, it is currently selling at a discount. This is due to a few factors such as the country's high dependency on exports, particularly to China, which has been impacted by the ongoing trade tensions between China and the US. Additionally, the Reserve Bank of Australia has lowered interest rates to record lows in an effort to boost economic growth, which has put pressure on the Australian dollar.Regarding the value of the US dollar, it is difficult to predict its future direction relative to the yen as it also depends on various factors. However, currently, the dollar is relatively strong compared to the yen due to the Federal Reserve's decision to raise interest rates, which makes the dollar more attractive to investors seeking higher yields. Additionally, the ongoing trade tensions between China and the US have also contributed to the dollar's strength as investors seek safe-haven assets such as the dollar.
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a corporation purchases 8,316 shares of its own $7 par common stock for $15 per share, recording it at cost. what will be the effect on total stockholders' equity?
Thus, the corporation's purchase of 8,316 shares of its own common stock for $15 per share will result in a reduction of total stockholders' equity by $124,740, considering both the par value and the additional paid-in capital.
When a corporation purchases its own shares, it is referred to as treasury stock.
In this case, the corporation purchased 8,316 shares of its $7 par common stock for $15 per share, resulting in a total cost of $124,740 (8,316 shares * $15 per share).
Treasury stock reduces the total stockholders' equity, as it represents the company's repurchase of previously issued shares.
To understand the effect on total stockholders' equity, we need to consider two components: the par value of the shares and the excess of the purchase price over the par value, known as additional paid-in capital.
The par value of the shares is $58,212 (8,316 shares * $7 par value), and the additional paid-in capital is $66,528 ($124,740 total cost - $58,212 par value).
The effect on total stockholders' equity will be a reduction of both the par value and the additional paid-in capital by the respective amounts.
This means the total stockholders' equity will decrease by the sum of these two components, which is $124,740 ($58,212 + $66,528).
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An annual fee charged by some mutual funds to cover marketing and selling expenses is the:
a management fee.
b back-end load.
c transaction fee.
d 12(b)-1 fee.
e low-load.
The correct answer is d. 12(b)-1 fee. The 12(b)-1 fee is a fee charged by some mutual funds to cover marketing and distribution expenses.
This fee is included in a fund's expense ratio and is assessed annually as a percentage of the fund's net assets. The purpose of the fee is to compensate brokers and other intermediaries for promoting and selling the fund.
Management fees, on the other hand, are paid to the investment advisor who manages the mutual fund's portfolio. These fees are also included in the fund's expense ratio and are typically a percentage of the fund's net assets.
Back-end loads are fees charged when investors redeem shares in a mutual fund. These fees are usually a percentage of the value of the shares redeemed, and are designed to discourage short-term trading in the fund.
Transaction fees are charged when investors buy or sell shares in a mutual fund, and may be charged by the fund company, the broker, or both. Low-load funds typically charge lower sales fees than front-end load funds, but may have higher expense ratios to compensate for the lower fees.
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nfs can be used to share files natively
Yes, that is correct. Network File System (NFS) is a protocol that allows a computer system to access files over a network as if they were on a local storage device.
It is an open standard protocol used to share files over a network among multiple clients and servers.
NFS is commonly used in Unix and Linux operating systems to share files and directories between servers and clients.
With NFS, files and directories can be mounted on a client computer as if they were local files. This allows multiple users to access the same files simultaneously without having to make copies or transfer them over the network.
To use NFS, the server must have the NFS service running and the client must have an NFS client installed.
The client can then connect to the server and access the shared files and directories. NFS provides a simple, efficient, and scalable way to share files across a network.
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the difference between the flow of money into and out of a country is called its
Answer:
The difference between the flow of money into and out of a country is called its balance of payments.
Explanation:
The difference between the flow of money into and out of a country is called its balance of payments. The balance of payments is a record of all transactions between a country's residents and its foreign counterparts, including payments for the country's exports and imports of goods, services, financial capital, and transfer payments. If a country's exports exceed its imports, it has a trade surplus, and the balance of payments will be positive. Conversely, if a country's imports exceed its exports, it has a trade deficit, and the balance of payments will be negative. The balance of payments is an important indicator of a country's economic health, as it can reflect trends in trade, investment, and currency exchange rates.
Answer:
Your school has not been performing well of late in external examinations . Write a letter to your headmaster, giving at least three reason for this poor performance and suggestion vemedes
Which of the following financial assets might be least likely to have an active secondary market?
A. Common stock of a large firm
B. Bank loans made to smaller firms
C. Bonds of a major, multinational corporation
D. Debt issued by the United States Treasury
Bank loans made to smaller firms might be the least likely to have an active secondary market.
They are not traded on organized exchanges, and there may be restrictions on transferring them to other parties.
Additionally , bank loans made to smaller firms may be less attractive to investors because they often carry higher risk and may be harder to evaluate than publicly traded securities. As a result, the secondary market for bank loans may be less active and less liquid than the markets for other types of financial assets.
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Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?
The market circumstance that does not make a focused low-cost or focused differentiation strategy attractive is high market demand.
When there is high market demand, firms can achieve economies of scale by producing products in large quantities, leading to lower costs per unit. In this situation, a company may choose to pursue a cost leadership strategy or a broad differentiation strategy to gain a larger market share. However, in situations where market demand is low or specific customer needs are not being met by broad market offerings, a company may choose to pursue a focused low-cost or focused differentiation strategy to serve a niche market. These strategies allow firms to cater to the specific needs of a small group of customers, which may be unprofitable for larger firms with high overhead costs. In conclusion, high market demand is not a favorable market circumstance for pursuing a focused strategy.
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Which of the following statements is true regarding a merit-based pay plan? A) It bases pay levels on how many skills employees have or how many jobs they can do.
B) It is also called competency-based pay plan.
C) Unions typically resist merit-based pay plan.
D) It distributes compensation based on an established formula designed around a company's profitability.
E) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.
The correct statement regarding a merit-based pay plan is A) It bases pay levels on how many skills employees have or how many jobs they can do.
What does this do?This type of pay plan is designed to reward employees for their performance, skills, and contributions to the organization.
It encourages employees to improve their skills and increase their productivity, which in turn benefits the organization. While it may not always be called a competency-based pay plan, the two concepts are closely related. Unions may resist this type of pay plan if they feel it could lead to favoritism or bias in the evaluation process.
However, if implemented fairly and transparently, a merit-based pay plan can be an effective way to motivate employees and improve organizational performance.
Hence, option A. is correct.
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Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Ruby Red Corporation is incorporated in South Carolina, therefore it is considered a domestic corporation within the state. A domestic corporation is a business that is registered and operates within the state where it was incorporated.
A foreign corporation, on the other hand, is a business that operates in a state other than where it was incorporated. An alien corporation is a business that is incorporated outside of the United States and operates within the country. Lastly, a non-entity is a term used to describe a business that does not exist or is not recognized by the state. In this case, since Ruby Red is a registered corporation in South Carolina, it is not considered a non-entity.
Ruby Red Corporation, incorporated in South Carolina, is considered a domestic corporation in that state. A domestic corporation is a company that is formed and operates under the laws of the state in which it is incorporated. In this case, Ruby Red Corporation is subject to South Carolina's laws and regulations, making it a domestic corporation within the state.
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.Which type of utility is created when a company makes products available where consumers want them?
A) Time
B) Place
C) Possession
D) Form
E) Operations
The type of utility created when a company makes products available where consumers want them is Place utility.
The marketing concept of the "Four Ps" refers to the four key elements of a marketing mix: Product, Price, Place, and Promotion. Place, also known as distribution, refers to the process of getting a product from the manufacturer to the customer. By making products available where consumers want them, companies create place utility.
Place utility can be created by having a strong distribution network, convenient store locations, online shopping platforms, and other strategies that ensure that products are available in the right place at the right time. This helps to make the product more accessible and convenient for the customer, and can increase sales and customer satisfaction. Time, Possession, Form, and Operations are other types of utility that can be created through marketing efforts.
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a major labor market trend that contributed significantly to the growth of u.s. real gdp during the second half of the 20th century (1950-2000) was a steady group of answer choices decrease in the natural rate of unemployment. decrease in the average real wage rate. increase in the labor force participation rate for women. decrease in the fraction of young adults attending college instead of working. increase in the fraction of the employed people who work for the government.
A major labor market trend that contributed significantly to the growth of U.S. real GDP during the second half of the 20th century (1950-2000) was the increase in the labor force participation rate for women.
This trend allowed a greater number of workers to participate in the labor market, increasing the available labor supply, and contributing to the growth of the economy. The other options listed are either not accurate or not as significant in driving economic growth during this time period. For example, a decrease in the natural rate of unemployment and a decrease in the average real wage rate would contribute to economic growth, but these trends were not as significant as the increase in labor force participation by women.
The fraction of young adults attending college instead of working is not directly related to labor market trends, and an increase in the fraction of employed people who work for the government is not necessarily a positive trend for economic growth.
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the paper money used in the united states is multiple choice treasury notes. united states notes. national bank notes. federal reserve notes.
The paper money used in the United States is known as federal reserve notes. These notes are issued by the Federal Reserve System, which is the central banking system of the country.
They replaced the older national bank notes and United States notes, which were previously used. The federal reserve notes are backed by the assets of the Federal Reserve Banks and are accepted as legal tender throughout the country. They feature portraits of various American historical figures, such as George Washington and Benjamin Franklin, and are printed in a variety of denominations to suit different needs. The Federal Reserve System plays a crucial role in managing the money supply and ensuring the stability of the US economy. Overall, the federal reserve notes are an important part of the US monetary system and are widely recognized as a reliable and trusted form of currency.
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an important purpose of lgbtq job fairs is to: group of answer choices ensure that lgbtq employees would be able to seek employment opportunities in settings in which they would be comfortable. isolate lgbtq employees from heterosexual employees. promote homosexuality among heterosexual employees. promote matchmaking among homosexuals in order to further the cause of same-sex marriages.
An important purpose of LGBTQ job fairs is to ensure that LGBTQ employees would be able to seek employment opportunities in settings in which they would be comfortable.
These job fairs do not aim to isolate LGBTQ employees from heterosexual employees or promote homosexuality among heterosexual employees. Rather, they provide a safe and inclusive space for LGBTQ individuals to explore career options and connect with potential employers who are committed to diversity and inclusion. Additionally, LGBTQ job fairs can also help to promote equal treatment and employment opportunities for all individuals, regardless of their sexual orientation or gender identity, including those in same-sex marriages.
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suppose you invest $10,000 in boeing (ba) stock, and $30,000 in merck (mrk) stock. you expect a return of 10% for boeing and 16% for merck. what is the expected return for your portfolio?
The expected return for your portfolio is 14.5%.
To calculate the expected return for your portfolio, you need to find the weighted average of the expected returns of each stock. Here's a step-by-step explanation:
1. Determine the total investment amount: $10,000 (Boeing) + $30,000 (Merck) = $40,000.
2. Calculate the weight of each stock in the portfolio:
- Boeing weight: $10,000 / $40,000 = 0.25 (25%)
- Merck weight: $30,000 / $40,000 = 0.75 (75%)
3. Multiply each stock's weight by its expected return:
- Boeing: 0.25 * 10% = 0.025 (2.5%)
- Merck: 0.75 * 16% = 0.12 (12%)
4. Add the results from step 3 to find the portfolio's expected return: 2.5% + 12% = 14.5%.
So, the expected return for your portfolio is 14.5%.
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1. what are the main elements of the maritime transportation infrastructure? how does the quality and dependability of the maritime transportation infrastructure affect an international shipment?
Cranes, wharves, dredged channels, locks, dams, and other tangible constructions are commonly considered to be part of the maritime "infrastructure". Among other things, port infrastructure consists of docks, piers, and channel harbors.
Generally speaking, a port's terminal to terminal circumstances differ. However, maintaining infrastructure in severe marine conditions is a difficulty for all ports. Business executives' opinions of their home country's port infrastructure are gauged by the Quality of Port Infrastructure. The scale goes from 1 to 7, with a higher score signifying stronger port infrastructure development.
Every nation's success depends on its port infrastructure. The length of India's coastline is roughly 7,500 kilometers. In terms of volume and value, ports handle nearly 95% and 70%, respectively, of India's exports. Imports of crude oil, iron ore, coal, and other essential materials are made via the sea route.
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blockbuster's decision to begin selling dvds in addition to renting them is an example of:
Blockbuster's decision to begin selling DVDs in addition to renting them is an example of a diversification strategy. Diversification is a business strategy that involves expanding a company's operations into new products, services, or markets.
In the case of Blockbuster, adding DVD sales to their rental business was a way to increase revenue streams and stay competitive in the market. This move allowed Blockbuster to appeal to a broader customer base, including those who prefer to own their movies rather than rent them.
Additionally, selling DVDs allowed Blockbuster to profit from popular movie releases and avoid losing out to online retailers like Amazon. Overall, the decision to sell DVDs was a strategic move that allowed Blockbuster to diversify their business and improve their financial performance.
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Blockbuster's decision to begin selling DVDs in addition to renting them is an example of diversification.
Diversification is a strategy where a company expands its product or service offerings into new markets or industries. In the case of Blockbuster, the decision to sell DVDs in addition to renting them was a way to diversify their revenue streams and adapt to changing consumer preferences. By offering DVDs for sale, they were able to tap into a new market of customers who preferred to buy rather than rent. This allowed Blockbuster to capture more revenue from these customers and potentially increase their overall profitability. However, the decision to diversify also came with risks, as it required Blockbuster to invest in new inventory and distribution channels. Additionally, as digital streaming services emerged as a popular alternative to physical DVDs, Blockbuster's decision to sell DVDs may have been short-sighted in hindsight.
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swenor sees that someone in the organization has less education than him. what is among his likely actions according to equity theory
According to equity theory, Swenor may engage in a few likely actions when he perceives someone in his organization has less education than him. Firstly, he may try to reduce the perceived inequity by increasing his own inputs (such as working longer hours or taking on more responsibilities) or decreasing his outcomes (such as accepting a lower salary or fewer benefits).
Alternatively, Swenor may seek to decrease the inputs or increase the outcomes of the person with less education, such as by mentoring or advocating for their promotion. Another possible action is that Swenor may try to leave the organization altogether if he feels that the inequity is too significant and cannot be resolved. Ultimately, the specific action that Swenor chooses will depend on his personal values, the context of the situation, and his perception of fairness in the organization.
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true or false any contract involving a sale of goods of $100 or more must be in writing.
True. Under the Uniform Commercial Code (UCC), any contract involving the sale of goods for $100 or more must be in writing to be enforceable.
This is known as the "Statute of Frauds" and is meant to prevent fraud and misunderstandings in business transactions. The written contract must contain essential terms such as the parties involved, the description of the goods being sold, the price, and any warranties or guarantees.
However, there are some exceptions to this rule, such as when the goods are custom-made, the buyer has accepted the goods, or when there is part performance by one of the parties. In these cases, a verbal contract may be enforceable.
It's important to note that each state may have its own variations of the UCC, so it's best to consult with an attorney to ensure compliance with state laws.
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business researchers can safely assume that the great majority of web sources are reliable. True or False
FALSE. While the internet provides a vast amount of information that can be useful for business research, it is not safe to assume that the great majority of web sources are reliable.
The internet is filled with unreliable, biased, or outdated information that can negatively impact the research process. It is important for business researchers to carefully evaluate the credibility of each source they use and to use multiple sources to verify information. This includes assessing the authorship, publication date, and quality of the source, as well as checking for any potential biases or conflicts of interest. Ultimately, it is the responsibility of the researcher to ensure the reliability and accuracy of the sources they use in their research. Business researchers should not assume that the great majority of web sources are reliable. It is crucial for researchers to evaluate the credibility, accuracy, and trustworthiness of web sources before relying on them for decision-making or research purposes.
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Which of the following is not among the 'deadly sins of software security'? a.Implementationsins b.Networking sins c.Web applicationsins d.Extortion sins.
Extortion sins, as it is not one of the commonly recognized categories of software security sins.
The deadly sins of software security are a set of common programming mistakes that can lead to security vulnerabilities. The correct answer is d. Extortion sins, as it is not one of the commonly recognized categories of software security sins.
The seven deadly sins of software security, as identified by security experts, are:
1. Input validation and representation sins
2. Authentication and password management sins
3. Access control sins
4. Security configuration sins
5. Cryptographic sins
6. Error handling and logging sins
7. Code quality sins
None of these categories include "extortion sins," which is not a recognized category of software security issues.
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Sandy’s Socks makes the world’s best socks. Information for the last eight months follows: Month Number of Socks Produced Total Cost January 1,000 $1,800 February 3,250 4,000 March 4,300 5,350 April 1,250 2,150 May 5,350 6,800 June 6,900 7,818 July 3,500 4,750 August 4,250 5,300 Using the high-low method, calculate the total fixed cost per month and the variable cost per sock. (Round your "Variable Cost per Unit" answer to 3 decimal places.) Variable Cost per unit: Fixed Cost:
Using the high-low method, we can calculate the total fixed cost per month and the variable cost per sock for Sandy's Socks.
To start, we need to determine the variable cost per unit. We can do this by subtracting the total fixed cost from the total cost of production at the highest and lowest levels of production and then dividing by the change in units produced.
The highest level of production occurred in June, with 6,900 socks produced at a total cost of $7,818. The lowest level of production occurred in January, with 1,000 socks produced at a total cost of $1,800.
Variable cost per unit = (Total cost at high production - Total cost at low production) / (High production - Low production)
Variable cost per unit = ($7,818 - $1,800) / (6,900 - 1,000)
Variable cost per unit = $1.20 per sock
To calculate the total fixed cost per month, we can subtract the variable cost per unit multiplied by the number of socks produced in a month from the total cost for that month. This will give us the total fixed cost for that month.
For example, in June, we can calculate the total fixed cost as follows:
Total fixed cost = Total cost - (Variable cost per unit * Number of socks produced)
Total fixed cost = $7,818 - ($1.20 * 6,900)
Total fixed cost = $7,818 - $8,280
Total fixed cost = -$462 (rounded to the nearest dollar)
This calculation indicates that there may be some error or outlier in the data for June. To calculate the total fixed cost per month for the other months, we repeat the same calculation using the number of socks produced and the total cost for each month.
The results are:
January: $800
February: $1,700
March: $2,000
April: $450
May: $2,050
July: $1,450
August: $1,700
Overall, using the high-low method, we can estimate that the total fixed cost per month for Sandy's Socks ranges from $450 to $2,050. The variable cost per sock is $1.20
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southwest airlines is considering buying a new boeing 737. the airplane will cost 29 million dollars today and then generate 8 million dollars per year for the next 12 years. after 12 years, the airplane will not generate any cash for southwest airlines. if the cost of capital is 11%, what is the npv (in millions of dollars) of buying the new airplane?
The net present value (NPV) of buying the new airplane is $19.39 million.
The net present value (NPV) of buying the new airplane can be calculated by discounting the cash flows generated by the airplane at the cost of capital, and then subtracting the initial cost of the airplane from the present value of the cash flows.
The formula for NPV is:
NPV = -C + (CF1 / (1+r)^1) + (CF2 / (1+r)^2) + ... + (CFn / (1+r)^n)
Where: NPV = Net present value, C = Initial cost of investment, CF = Cash flow in the respective year, r = Discount rate (cost of capital), and n = Number of years.
To calculate the NPV of buying the new Boeing 737 for Southwest Airlines, we first need to calculate the cash flows generated by the airplane. The airplane costs $29 million today and generates $8 million per year for the next 12 years. Therefore, the cash flows are as follows:
Year 0: -$29 million
Year 1: $8 million
Year 2: $8 million
Year 3: $8 million...
Year 12: $8 million
To calculate the NPV, we need to discount each cash flow at the cost of capital (11%) and sum them up. We can use the formula above to do this. The NPV of buying the new airplane is:
NPV = -$29 + ($8 / (1+0.11)^1) + ($8 / (1+0.11)^2) + ... + ($8 / (1+0.11)^12)
= -$29 + $7.21 + $6.47 + $5.82 + $5.23 + $4.71 + $4.24 + $3.81 + $3.43 + $3.08 + $2.77 + $2.49 + $2.23
= $19.39 million
Therefore, the NPV is approximately $19.39 million (in millions of dollars).
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investor perception of low default risk for mbs resulting in a higher demand for them is attributed to a. supply of homes lagging demand increases b. the growing bubble in the housing market c. the ability of lenders to sell of loans easily to issuers like fannie mae and freddie mac d. the ability of the servicer to help a borrower restructure the loan repayments e. none of the above
The correct answer to the question is c. The investor perception of low default risk for mortgage-backed securities (MBS) resulting in a higher demand for them is attributed to the ability of lenders to sell off loans easily to issuers like Fannie Mae and Freddie Mac.
This is because Fannie Mae and Freddie Mac are government-sponsored entities that buy mortgages from lenders and package them into MBS, which are then sold to investors. The fact that these entities guarantee the payment of principal and interest on the MBS makes them highly attractive to investors, as it reduces the risk of default.
The other options listed are not directly related to the investor perception of low default risk for MBS. The supply of homes' lagging demand increases may affect the housing market as a whole, but it does not necessarily impact the demand for MBS. The growing bubble in the housing market is a phenomenon that may lead to higher default risk, and therefore, lower demand for MBS. The ability of the servicer to help a borrower restructure the loan repayments may reduce the risk of default, but it does not necessarily affect the demand for MBS.
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the charter of a corporation provides for the issuance of 118,683 shares of common stock. assume that 38,074 shares were originally issued and 4,727 were subsequently reacquired. what is the amount of cash dividends to be paid if a $2-per-share dividend is declared?
The amount of cash dividends to be paid when a $2-per-share dividend is declared is $66,694.
To calculate the cash dividends to be paid when a $2-per-share dividend is declared, you need to consider the number of outstanding shares. Outstanding shares are the shares that have been issued and are currently held by shareholders.
First, find the number of outstanding shares by subtracting the reacquired shares from the originally issued shares:
38,074 (originally issued) - 4,727 (reacquired) = 33,347 (outstanding shares)
Next, multiply the number of outstanding shares by the declared cash dividend per share:
33,347 (outstanding shares) x $2 (cash dividend per share) = $66,694
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farm z has the following information from the balance sheet. the farm expects a rate-of-return on assets of 15% and a cost of debt of 9%. the farm needs to pay an income tax rate of 25% and consumes 75% from after-tax net income. find the rate of growth of equity capital.
The rate of growth of equity capital for Farm Z is 4.875%.
The rate of growth of equity capital for Farm Z can be calculated using the DuPont Model as follows:
Return on Equity (ROE) = Net Income / Equity
ROE can be further broken down into two components: Return on Assets (ROA) and the Equity Multiplier. The Equity Multiplier is calculated as Total Assets / Equity.
ROE = ROA x Equity Multiplier
Given that the farm expects a rate of return on assets of 15%, we can calculate the Equity Multiplier as follows:
Equity Multiplier = Total Assets / Equity = 1 + (Total Debt / Equity)
Assuming that the farm has no preferred stock, we can calculate the after-tax cost of debt as follows:
After-Tax Cost of Debt = Cost of Debt x (1 - Tax Rate) = 9% x (1 - 0.25) = 6.75%
Using these values, we can calculate the Equity Multiplier as:
Equity Multiplier = 1 + (Total Debt / Equity) = 1 + (0.0675 / (1 - 0.25)) = 1.3
Now, we can calculate the ROE as:
ROE = ROA x Equity Multiplier = 0.15 x 1.3 = 0.195
Finally, we can calculate the rate of growth of equity capital as:
Rate of Growth of Equity Capital = ROE x (1 - Dividend Payout Ratio) = 0.195 x (1 - 0.75) = 0.04875 or 4.875%
Therefore, the rate of growth of equity capital for Farm Z is 4.875%.
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what do a security guard, a plumber, and a management consultant have in common?
A security guard, a plumber, and a management consultant have several aspects in common.
All three professions require specific skill sets, training, and expertise in their respective fields. They also share the responsibility of problem-solving to address clients' needs, whether it's maintaining a safe environment, fixing plumbing issues, or improving a company's efficiency.
Moreover, each profession involves interacting with clients or customers, which necessitates strong communication and interpersonal skills.
Additionally, all three professionals need to adapt to various work environments, exhibit professionalism, and adhere to industry standards and guidelines to ensure satisfactory results.
In summary, a security guard, a plumber, and a management consultant all possess unique skills and knowledge, engage in problem-solving, and demonstrate effective communication and professionalism in their work.
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compute the lost social welfare (deadweight loss) that stems from the $40 price floor.
To compute the deadweight loss from a $40 price floor, you need to understand the concepts of supply and demand. A price floor is a minimum price set by the government above the equilibrium price, which can lead to a surplus of goods. When a price floor is set at $40, it disrupts the market equilibrium, creating inefficiencies.
The lost social welfare or deadweight loss occurs when resources are not allocated optimally. In this case, the deadweight loss is represented by the area of a triangle formed between the supply curve, the demand curve, and the price floor. To calculate the deadweight loss, you need to know the base and height of this triangle, which would require information on the supply and demand curves.
In conclusion, to compute the deadweight loss, you would need additional information about the market's supply and demand curves. With that information, you can find the base and height of the triangle and calculate the lost social welfare resulting from the $40 price floor.
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how studying economics would benefit policy makers
Governments utilize economic tools to effect changes as they deem fit, even when external events may have an impact on economic activity. This might involve revisions to tax laws, changes to the federal funds rate, shifts in the quantity of money, or adjustments to government expenditure.
The issue of whether or not the government should become involved in the economy has philosophical roots. Some people think that the government has a duty to shield its people from financial hardship. Others think that free markets and free trade will operate naturally and self-regulate as they should.
The welfare of its population is something that the government has a natural interest in preserving. The government may decide to establish specific legislation in response to global situations in order to protect the standard of living for its citizens.
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