A share of stock with a beta of 0. 75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The t-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? what will investors do? at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today?.

Answers

Answer 1

What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .

What is Equilibrium in business?

When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.

The holding period return, which is (earnings (dividends) + (ending stock price - beginning stock price))/beginning stock price = (2 + (52 - 50))/50 = 4/50 = 8%, can be used to determine the actual return.

CAPM can be used to determine the Opportunity Cost of Capital. = Risk Free Rate + beta(Market Premium) = 4% + 0.75(7%) = 9.25%

The stock is a bad buy since the Opportunity Cost of Capital exceeds the Actual Return on the stock.

Investors won't buy anything.

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Related Questions

The process of aggregating prospective buyers into groups with common needs that will respond similarly to a marketing action is called ______.

Answers

Market segmentation is the process of grouping potential customers into groups with comparable demands that will react similarly to a marketing initiative.

Explain about the Market segmentation?

Market segmentation separates a market into subsets based on demographics, desires, goals, similar interests, and other psychographic or behavioral factors used to better understand the target audience. By studying your market segments, you may apply this targeting to your efforts in sales, marketing, and product development.

Market segmentation is a marketing tactic that involves identifying particular client groups in order to provide them with particular products or product lines in a way that appeals to their tastes.

Market segmentation aims to assist organizations in comprehending the many customer segments that make up their market. Marketers may successfully target the segments that are most useful to their organization by combining people with similar traits and features.

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What is the test for whether a contract is governed by the statute of frauds because of the one-year rule?.

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Contracts that cannot be fulfilled in a year. Contracts frauds that cannot be carried out within a year after the contract's formation must be in writing in accordance with this clause of the Statute of Frauds. The contract's one-year time frame begins on the day it is made.

The goal is to stop fraud and other types of harm. Contracts frauds involving the sale or transfer of land and contracts that cannot be completed within a year are the most frequent contract kinds to which the Act applies. any vows made, including presents like an engagement ring, that are related to the marriage. contracts that take longer than a year to fulfil. contracts for buying and selling land.

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which of the following are outcomes associated with various types of organizational culture? multiple select question. stronger quality and innovation in hierarchy cultures higher financial performance in market and hierarchy cultures higher customer satisfaction in clan and market cultures higher market share in adhocracy cultures more positive organizational outcomes in market cultures higher market share in clan and market cultures

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The appropriate behavior inside an organization is determined by its culture, hence the correct answers are- (b), (c), (d) and (e).

Outcomes associated with various types of organizational cultures are-

Higher financial performance in market and hierarchy culturesHigher customer satisfaction in clan and market culturesMore positive organizational outcomes in market culturesHigher market share in clan and market cultures

All team members' behavior is influenced and guided by the values, beliefs, and procedures that make up the organization's culture. Regard it as the assortment of features that characterize your corporation. While a disordered organizational culture brings forth traits that can hamper even the greatest successful corporations, a positive organizational culture displays desirable traits that encourage superior efficiency.

The complete question is here:

Which of the following are outcomes associated with various types of organizational culture? (Choose every correct answer.)

Multiple select question.

Higher financial performance in market and hierarchy culturesHigher customer satisfaction in clan and market culturesStronger quality and innovation in hierarchy culturesHigher market share in adhocracy culturesMore positive organizational outcomes in market culturesHigher market share in clan and market cultures

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Answer: higher customer satisfaction in clan and market cultures

Higher market share in clan and market cultures

More positive organizational outcomes in market cultures

Explanation:

us firms that issue securities in the us have to comply with sec regulations. if these firms issue securities in the eurobond market, an advantage is limited blank requirements, as they do not have to provide as much information. multiple choice question. disclosure taxation political economic

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Politics and economics are both involved in the topic of taxes. Political leaders have implemented a variety of tax changes, such as lowering (or raising) tax rates, altering the definition of taxable income, enacting new taxes on particular goods, and so forth, to further their political objectives.

Explain about the taxation political economic?

A taxation authority, typically a government, levying or imposing a financial obligation on its inhabitants or residents is known as taxing them. Since ancient times, paying taxes to governments or officials has been a fundamental aspect of civilization.

Specific tax preferences can have an impact on how economic resources are allocated, whereas high marginal tax rates can discourage work, saving, investing, and innovation. Tax cuts, however, can also reduce long-term economic development by raising deficits.

For instance, the highest payroll taxes in the United States are 2.9% for Medicare and 12.4% for Social Security, totaling a 15.3% tax rate. In this instance, the employer pays half of the payroll taxes, or 7.65% of the tax rate.

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selena, a surgeon, purchases a disability policy with a base benefit of $5,000 per month and an sis offset benefit of $1,500. selena is now disabled and receives a $1,000 in social security disability benefits. how much will selena receive from the insurance company initially

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If selena, a surgeon, purchases a disability policy with a base benefit of $5,000 per month and  selena is now disabled and receives a $1,000 in social security disability benefits. The amount she will  receive from the insurance company initially is $5,500.

What is disability insurance?

Disability insurance can be defined as type of insurance policy that help to cover a person in case of unforeseen or unexpected event  happen to the person that led to the person to be disabled.

Now let determine the amount of money she will received from  the insurance company using this formula

Amount to received = Cost of disability policy + ( Offset benefit - Socail security disability benefits)

Let plug in the formula

Amount received = $5,000 + ( $1,500 - $1,000)

Amount received = $5,000 + $500

Amount received = $5,500

Therefore we can conclude that she will receive the amount of $5,500 form the insurance company.

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the primary advantage of the high-low method over other cost estimation methods is that: a. it is a more straightforward approach to determining the variable and fixed elements of mixed costs b. it utilizes only two data points rather all data points within a relevant range c. it can only be applied within the relevant range of observations of the independent variable d. it relies on judgment to determine the cost estimation model

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The primary advantage of the high-low method over other cost estimation methods is that: a. it is a more straightforward approach to determining the variable and fixed elements of mixed costs.

Mixed cost is the fee that modifications with a exchange inside the company's manufacturing quantity, because the variable fee, and the equal cannot be eliminated from the enterprise's overall price just like the constant fee. they're frequently associated with production or manufacturing.

Variable expenses are costs that alternate as the quantity of the good or provider that a enterprise produces adjustments. Variable prices are the sum of marginal expenses over all devices produced. They also can be taken into consideration regular fees. constant costs and variable costs make up the 2 additives of overall price.

Variable charges are people who range with manufacturing or activity ranges. general blended costs are located via including each the constant expenses and variable costs collectively.

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as part of an anti-obesity program, the government places an excise tax on high-fat foods. we would expect consumers to pay almost all of this tax if demand is:

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As part of an anti-obesity program, the government levies an excise tax on high-fat foods. We expect consumers to pay almost all of this tax if demand is inelastic and supply is elastic.

Because the flexibility of demand and supply affects the tax burden. More of the tax burden is borne by people the more inelastic the curve is.

When the elasticity is greater than one, it indicates that the demand or supply is very responsive to changes in price. A demand or supply is said to be inelastic if its elasticity is less than one, indicating that it is not very responsive to price changes.

A boost in demand will cause a small price increase but a significant increase in demand when the supply is elastic. If supply is inelastic, a rise in demand will lead to a big price increase but a little rise in demand. The supply is said to be price inelastic if the price elasticity of the supply is less than 1.

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which of the following is a factor that determines the coupon rate of a company's bonds? multiple choice the amount of uncertainty about whether the company will be able to make all the payments. the term of the loan. the level of interest rates in the overall economy at the time. all of these choices are correct.

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In other words, the issuer's creditworthiness and current interest rates both have an impact on the coupon rate.

The coupon rate and market price of a bond are both directly impacted by the current interest rate.

A bond's annual payments are totaled up and divided by the bond's face value (also known as its "par value") to determine the coupon rate. Credit risk is the biggest factor influencing corporate bond interest rates after current interest rates.

Bond prices increase when a coupon is more than the current interest rate; prices decrease when a coupon is lower. Most bonds include fixed coupon rates that don't fluctuate with the national interest rate or the state of the economy.

Bonds with lower coupon rates typically have a larger interest rate risk than bonds with higher coupon rates of the same type.

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during a risk management project, an evaluation of several controls determines that none are cost-effective in reducing the risk related to a specific important asset. what risk response is being exhibited by this situation?

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During a risk management project Acceptance is being exhibited by this situation.

The required details about risk management is mentioned in below paragraph.

Risk management is concerned with foreseeing what might go wrong and putting measures in place to reduce uncertainty to a manageable level. Risk can be seen favorably (as opportunities) or adversely (as dangers) (downside threats). A risk is the possibility for a circumstance or event to have an impact on the accomplishment of particular goals. Before beginning the risk analysis phase of the risk management process, the project professional, in collaboration with the risk owner, makes sure that hazards are precisely recognized.

The project risk management process captures and manages emerging risks and updates previous risk analysis to reflect new information, reflecting the dynamic nature of project activity.

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which of the following statements about ratio analysis is true? a. ratio analysis determines the causes of variances between planned goals and actual results. b. as part of a loan agreement, creditors may require hospitality businesses to maintain specific ratio standards. c. managers, creditors, and investors have the same purposes in using ratio analysis. d. ratios are always expressed as percentages

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Creditors may stipulate in the terms of a loan arrangement that hospitality enterprises must maintain particular ratio analysis.

By examining a company's financial documents, such as the balance sheet and income statement, ratio analysis is a quantitative technique for gaining ratio analysis insight into its liquidity, operational enterprises effectiveness, and profitability. A crucial component of fundamental equity analysis is ratio analysis.

Ratio analysis is a tool that analysts and investors use to assess a company's financial standing by carefully examining both its historical enterprises and current financial records. Comparative data can be used to predict ratio analysis expected future performance and show how a company is doing over time. This information can be used to compare a company's financial performance to sector averages and gauge how it compares to rivals in the same industry.

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stereo corp. produces radios. the following information on inventory and production pertains to the year 2017. total manufacturing costs debited to wip in 2017 $336,000 beginning wip $37,000 ending wip $82,000 beginning finished inventory $0 ending finished goods inventory $45,500 overapplied overhead $7,500 calculate the cost of goods manufactured at stereo corp. in the year 2017.

Answers

The cost of goods manufactured at stereo corp. in the year 2017 is $285,000.

What is Manufacturing?
Manufacturing is the process of turning raw materials or sections into finished goods using tools, human labour, machinery, and chemical products.

Manufacturing enables companies to sell finished goods at a price higher than the cost of the materials used. Huge manufacturing allows for the mass production of goods using assembly line procedures and sophisticated technology as core assets. Manufacturing techniques that are efficient allow manufacturers to start taking advantage of scale economies of scale, generating more units at the a lower cost. Manufacturing is a vital and significant component of the economy. It entails the transformation of raw materials such as ore, timber, and food into finished goods such as metal goods, soft furnishings, and processed foods.

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A share of stock with a beta of 0. 75 currently sells for $50. Investors expect the stock to pay a year-end dividend of $2. The 1 year t-bill currently sells for $961. 54, and the historic return on the market is 11%, the historic risk free rate is 4%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?.

Answers

Expected price next year = $62.58

Beta is 0.75, PO is $50, D1 is $2, RF is 11%, and RM is 4%.

Where,

Expected Dividend = D

Po = Price as of today.

Risk-free Rate is Rf.

Market risk premium is Rm.

g = rate of growth

Equity cost is Rf plus beta minus Rm.

Equity cost is 11% plus 0.75 and 4%.

Equity cost = 3.33%

Making use of the Dividend Discount Model to Estimate Growth Rate

(D1/P0) + g = ke

(2/50) + g = 3.33%

0.04 + g= 3.33%

g = 3%

Expected price for the following year = $2*1.033/ (0.03-0.033)

Expected price next year = $62.58

What is Expected price?

As its name suggests, predicted price level is a forecast that takes into account accurate evaluation of pertinent economic data to foretell what will happen with those goods and services in the future. Making changes to this level when new information becomes available is essential because unknowable factors may become real over time.

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during the year, brenda (70), a single taxpayer, received $18,000 in social security benefits. her only other income consisted of $6,000 in wages from a part-time job and a pension distribution of $8,500. how much of brenda's social security benefits are taxable?

Answers

Since Brenda's income is less than $25000 therefore none of her social security benefits is taxable

For individuals with a total gross income that includes Social Security of at least $25,000 or couples filing jointly with a combined gross income of at least $32,000, up to 50% of Social Security income may be subject to taxation. If you and your spouse file jointly and have a combined income between $32,000 and $44,000, you will owe taxes on half of your benefits. If your income is higher than that, up to 85% of it may be taxed.

Computing income of Brenda:

Brenda's social security benefits = $18000

Amount of social security benefits to be considered for taxation = 50% of 18000 = $9000

Income from wages = $6000

Income from a part-time job and pension distribution = $8500

The combined income of Brenda = Social security benefits + Income from wages + Income from a part-time job and pension distribution

= 9000 + 6000 +8500

= $23,500

The combined income is $23500 which is less than $25,000 therefore none of her benefits is taxable

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expected return american eagle outfitters (aeo) recently paid a $.44 dividend. the dividend is expected to grow at a 16.10 percent rate. at the current stock price of $24.67, what is the return shareholders are expecting? multiple choice 16.12% 18.17% 16.10% 17.92%

Answers

18.17% return the shareholders are expecting.

According to the constant dividend growth model

price = d1 / (r - g)

Next dividend to be paid=(0.44 x 1.1610)

Cost of equity= r

Growth rate=0.1610

24.67 = (0.44 x 1.1610) / (r - 0.1610)

24.67 x (r - 0.1610) = 0.51084

(r - 0.1610) = 0.02070

cost of equity, r= 0.2070+0.1610

cost of equity, r = 0.1817

                          = 18.17%

shareholders return expecting = 18.17%

A person or legal organisation that is officially recognised by a corporation as the owner of shares of the share capital of a public or private corporation is referred to as a shareholder.

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the donut stop acquired equipment for $27,000. the company uses straight-line depreciation and estimates a residual value of $5,000 and a four-year service life. at the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. at the same time, the company also changed the estimated residual value to $2,800 from the original estimate of $5,000. required: calculate how much the donut stop should record each year for depreciation in years 3 to 6.

Answers

Depreciation is the process of allocating costs over the course of an asset's life.

The donut shop needs to keep $4,750 in records every year from years three to six for depreciation.

What is depreciation?

Depreciation: Depreciation is the process of allocating costs over the course of an asset's life. Assets with a lifespan of more than five years are referred to as long-lived assets. It is a cost of doing business. The units of production technique, the declining method, and the straight-line method can all be used to compute depreciation. Depreciation cannot be used to calculate the asset's real value.

Straight-line technique: This method divides the asset's life by the difference between its cost and residual value to calculate the amount of depreciation. In this system, the depreciation amount is distributed equally across the asset's useful life.

Depreciation for year 3 is $4750 and is calculated as follows:

Asset's cost was $27,000

less  Depreciation (2 years) 8,000

Book Value $19,000

divide remaining life 4 yrs

$4,750 in depreciation

Therefore,The donut shop needs to keep $4,750 in records every year from years three to six for depreciation.

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quaker state wings has 310,000 shares outstanding and net income of $970,000. the company stock is currently selling for $65.23 per share. if the company repurchases $632,000 of its stock, what is the earnings per share after the repurchase?

Answers

Earnings per share after the repurchase of quaker state wings will be $3.23.

When businesses opt to repurchase their stock, share repurchases take place. companies that buy back their stock from investors or on the open market. Also referred to as a share repurchase, it is frequently carried out to a rise in the value of the equity, a strengthening of the business's financial situation, and Consolidation.

A share repurchase boosts earnings per share since it lowers the number of outstanding shares (EPS). The market value of the remaining shares rises as EPS increases. The shares are canceled or kept as treasury shares after repurchase, which means they are no longer held publicly and are no longer in circulation.

Basic EPS = (Net income - preferred dividends) ÷ weighted average of common shares outstanding during the period.

Preferred dividends should be eliminated from the net income because they are not available to common stockholders. Net income can also be broken down into "continued operations" P&L and "total P&L".

Shares repurchased = $632,000/310,000 = 9,688.79 shares

New EPS = $970,000/(310,000 − 9,688.79) = $3.23

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________ flows involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

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Financial flows involve money transfers, payments, payment schedules, credit card information and authorization, credit-related data, and e-payments.

Financial flow is one of the three main flows of the supply chain. Financial flows involve the transfer of money from consumers to suppliers. Financial flows of supply chain management deal with the financial and economic aspects of businesses. Financial flows can be considered from two perspectives: the first is from the cost and investment perspective and the second is from the perspective of flow of funds.

The financial flow includes payment schedules,  credit terms, and consignment, and title ownership arrangements. In order to manage financial flows in the supply chain, a number of opportunities and challenges are encountered that need to be addressed properly. Since the financial flow is a key supply chain management activity that directly impacts cash flow positions and the profitability of the organization.

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which statement correctly names the type of hr management software that should be used for the described activity? more than one answer may be correct.

Answers

These are all the given statements, that can be considered as the names of the HR management software that should be used for the described activity. Hence, Options A, B, and C are correct.

What is HR management software?

The daily operations of human resources and the organization's broader HR objectives can be managed and optimised with HR software. HR managers and staff are able to allocate their time and resources more effectively to tasks that will yield greater profits thanks to HR software.

Hiring and recruiting software is needed to look into the future to assess the company's personnel requirements. Software for pay management is needed to guarantee that hourly, salaried, and independent contractor workers are paid appropriately.

Software for employee evaluation is needed in order to record employee performance and provide an equal system for grading performance.

Therefore, Options A, B, and C are correct.

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The complete question is attached in text form:

Which statement correctly names the type of HR management software that should be used for the described activity? More than one answer may be correct

-Looking ahead to determine the future workforce needs of the corporation requires recruiting and hiring software.

-Ensuring that hourly or salaried employees and independent contractors are paid correctly requires compensation management software.

-Documenting employee performance and providing an equitable means of ranking performance requires employee evaluation software.

bims corporation uses the weighted-average method in its process costing system. the assembly department started the month with 2,800 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. an additional 63,000 units were transferred in from the prior department during the month to begin processing in the assembly department. there were 22,000 units in the ending work in process inventory of the assembly department that were 60% complete with respect to conversion costs. what were the equivalent units for conversion costs in the assembly department for the month? multiple choice 43,800 82,200 55,040 57,000

Answers

The solution is 59,400.

The required details for weighted average method in given paragraph

Each data point's value is multiplied by the allotted weight in a weighted average before being added together and divided by the total number of data points. The accuracy of the data can therefore be increased by using a weighted average. To keep track of the cost basis of shares purchased at various points in time, stock investors utilize a weighted average.

Weighted average approach

Units moved to the next department equal 4,400 + 67,000 - 30,000 = 41,400 units. Units started into production equal 4,400 + 67,000 - 30,000.

Transfer of Conversion Units to the Following Department 41,400

completing ongoing work:

(30,000 units x 60%) conversion 18,000

Equivalent production units: 59,400

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the action that eventually led to polaroid's bankruptcy was their major strategic shift into the digital camera market. question 14 options: true false

Answers

False .  Polaroid was forced to declare bankruptcy after 30 years of strong financial performance.

Why did polaroid have to declare bankruptcy ?

Patent infringements and bad corporate governance were to blame for Polaroid's inability to adjust quickly. Around the year 2000, the business concepts that had sustained their success since its foundation in 1937 began to crumble. The failure of Polaroid was mostly caused by two factors: a flawed business strategy and aversion to becoming a leader in their industry. Given all of their early work on digital photography, Polaroid may have controlled the industry today.

But very early on, failure anxiety set up within the firm. If you want to continue being successful, you can't let business failure scare you too much. The ability to diversify, innovate, and understand the market are crucial competencies.

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when a firm produces and sells 150 units of output, its average total cost is $24.50. when the firm produces and sells 151 units of output, its average total cost is $24.55. when the firm increases its output from 150 units to 151 units, its marginal cost is

Answers

Total profit earned by the firm is $2,325 considering total cost $6000 and marginal cost per unit = $0.05.

No. of units = 150

Average cost per unit = $24.50

Total cost = 150* 24.50 = $3,675

Selling price per unit = $40

Total selling price = $40*150 = $6000

Profit = $6,000-$3,675 = $2,325

Average total cost of producing 151 units = $24.55

Marginal cost per unit = $24.55-$24.5 = $0.05

Total cost is the total of all costs associated with producing a certain output of any kind. The whole cost approach is preferable from an accounting perspective since operational costs must be attributed to particular assets. Only indirect costs are more likely to be included in short-term decision-making, which makes it far less likely that total cost will be taken into consideration.

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The question was incomplete. Check below the full question.

The information below applies to a competitive firm that sells its output for $40 per unit.

• When the firm produces and sells 150 units of output, its average total cost is $24.50.

• When the firm produces and sells 151 units of output, its average total cost is $24.55.

When the firm produces 150 units of output, its profit is

a. $2,150.00.

b. $2,325.00.

c. $3,100.75.

d. $3,675.00.

rising cotton prices have forced quilters to switch from fabric to linen. what happened to consumer surplus in the market for linen, assuming supply held steady and the market sells at the equilibrium price?

Answers

Consumer surplus will be smaller after increase in demand.

Shopper excess is the contrast between the greatest value clients will pay for an item or administration, and the real cost for the item or administration. The interest bend ordinarily has a descending slant, since clients can continuously purchase a bigger amount given a lower cost. The region underneath the interest bend or more the balance cost is the buyer excess.

What befalls shopper overflow when the cost increments?

Buyer excess generally increments as the cost of a decent falls and diminishes as the cost of a decent ascents.

How are the shopper excess and maker excess impacted by decline in balance value because of shift in supply bend?

On the off chance that there is an outward shift of supply - for instance brought about by an improvement underway innovation or efficiency, then, at that point, the harmony cost will fall, and amount requested will grow. This prompts an expansion in shopper surplus to another area of AP2C.

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which of the following statements about fiscal policy is accurate? the tax multiplier has a greater impact than the spending multiplier. government spending has a direct impact on short-run aggregate supply. it will decrease the inflation rate. it can only be used to correct a recessionary gap. there is a time lag between discretionary spending and its impact. distractor

Answers

Fiscal policy which is accurate is there is a time lag between discretionary spending and its impact.  

What is Fiscal policy?

The employment of government spending and taxation to affect the economy is known as fiscal policy. Governments often utilize fiscal policy to encourage robust, long-term growth and to lower poverty.

In order to stimulate the economy, for instance, governments can decrease taxes and increase spending; normally, these expenditures go toward social programs and infrastructure projects that generate employment and income. A government may also decide to cut spending while raising taxes if the economy is strong.

Because it has the power to impact the overall quantity of output produced—that is, the gross domestic product—fiscal policy is a crucial tool for controlling the economy. An increase in demand for products and services is the first effect of a fiscal expansion. Increased demand causes both output and prices to rise.

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Answer:

E) There is a time lag between discretionary spending and its impact.

if the nominal exchange rate is expressed as foreign currency per dollar , which of the following would both make americans more willing to buy italian goods? the nominal exchange rate a. falls, the price of goods in italy rises. b. rises, the price of goods in italy falls. c. rises, the price of goods in italy rises. d. falls, the price of goods in italy falls

Answers

if the nominal exchange rate expressed as foreign currency per dollar, rises, the price of goods in Italy rises will make Americans more willing to buy Italian goods.

The domestic currency needed to buy one unit of a specific foreign currency is known as the nominal exchange rate. Nominal currency appreciation is the term used to describe a decline in this variable.

Interest rates, consumer confidence, the current account on the balance of payments, economic expansion, and relative inflation rates are some of the variables that affect exchange rates.

The amount of local currency required to buy foreign currency is known as the nominal exchange rate. The NEER is a measure of a nation's ability to compete internationally in the foreign exchange (forex) market.

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the balance sheets of davidson corporation reported net fixed assets $620,000 at the end of year 1 and $340,000 at the end of year 2. net sales for year 2 totaled $1,440,000. what is the fixed-asset turnover ratio for year 2?

Answers

The fixed asset turnover ratio is 3.0

Net fixed assets for year 1 = $620,000

Net fixed assets for year 2 = $340,000

Net sales for year 2 = $1,440,000

Analysts typically utilize the fixed asset turnover ratio (FAT) to gauge operating performance. This efficiency ratio assesses a company's capacity to generate net sales from its fixed-asset investments, specifically property, plant, and equipment (PP&E). It compares net sales (income statement) to fixed assets (balance sheet) (PP&E).

Fixed Asset turnover ratio is given by:

= Net sales for years 2/{(Net fixed assets for year 1 + net fixed assets for year 2)}/2

= 1440000/{(620000+340000)}/2

= 3.0

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emil has an investment that earns 14% return on investment. if inflation is 3%, what is emil's real rate of return? question 2 options: 9.45%. 10.68%. 11.53%. 12.79%.

Answers

The real rate of return for Emils investment is  is 10.68%

how to calculate real rate of return?

The simple formula applied in the present calculator is the following:

rᵣ = (1 + rnom) / (1 + π) − 1.0

[tex]r_{r} = \frac{(1+r_{nom})}{(1+\pi) } -1.0[/tex]

Where:

rᵣ - real rate of return;

rnom - nominal rate of return; and

π - annual inflation rate.

so

[tex]r_{nom}[/tex]=14%

[tex]\pi[/tex]=3%

[tex]r_{r} = \frac{(1+14)}{(1+3) } -1.0[/tex]=10.68%

The real rate of return is the periodic chance of return on an investment, acclimated for affectation. In other words, the real rate of return is the return that reflects factual growth in terms of unborn buying power. thus, the real rate of return is the return that you would see if there were no affectation.

For illustration, suppose you invest,1000

now and admit, 100 in one time. The nominal rate of return is 10percent.However, that is, the affectation rate is 10 percent, If the general position of prices increased by 10 percent. thus, you garnered a zero percent real rate of return on your investment.

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Why would a young adult be likely to purchase disability insurance?

Answers

Answer:

D

Explanation:

The only time a healthy young person will purchase disability assurance is when they work in an interstate that requires them to this interesting will most likely be dangerous

rich and merle purchase a property for 275,000. they obtain a new 75% loan from the abc lending company. how much was their loan, and how would it appear on their settlement statement?

Answers

The loan would be $206,250 and it would appear on their settlement statement as $206,250; credit the buyer.

The loan obtained by Rich and Merle can be calculated as follows;

As they purchased a property for $275,000 and the loan obtained was 75%; therefore we multiply this percentage by the total amount of the property;

Loan = 75% of $275,000

Loan = 75% × 275,000

Converting this percentage into decimals as follows;

75% = 75 ÷ 100 = 0.75

Loan = 0.75 × 275,000

Loan = $206,250

Therefore the loan is calculated to be $206,250 and as it would be a credit to the buyer, it would appear on their settlement statement as $206,250; credit the buyer.

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Invented by the well-known quality control statistician dr. Kaoru ishikawa, what is the name of the analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects?.

Answers

Fishbone diagram was the name of the analysis tool invented by the well-known quality control statistician dr. Kaoru Ishikawa, that provides a systematic way of looking at effects and causes that create or contribute to effects.

Who was Dr, Kaoru Ishikawa?

Kaoru Ishikawa was a famous Japanese organizational theorist. He is regarded as the key figure in the development quality initiatives in Japan, outside Japan he is well diagram known for the Ishikawa or cause and effect diagram (also known as fishbone diagram)

What is Fishbone Diagram?

Fishbone diagram also called Ishikawa diagram are casual diagrams which was created by Kaoru Ishikawa which showed the potential causes of a specific event. This diagram is used in product development and troubleshooting process. The advantages of fishbone diagram are

Easy to constructHelps in finding out the cause for the problem

Disadvantages

SubjectiveCan be oversimplified

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Because this type of conflict is due to organizational design, adjusting the design often reduces or eliminates the conflict.

Answers

The type of conflict that is due to organizational design and in which adjusting the design often reduces or eliminates the conflict is: Structural Conflict.

What is structural conflict?

Structural conflict is a kind of conflict situation that arises when there is an unequal distribution of power. This causes an imbalance that upsets the organization. It also often arises due to the way the organization is set up. This kind of conflict is often seen in the economy and in social and political settings. Structural conflict is a matter that stems from the design of the setup.

To correct such a conflict, the setup has to be adjusted so that all who are involved will be able to have relief from the underlying problems. Structural conflict can affect people's relationships with each other. It can also be a problem with the person who is given the task of making critical decisions in an establishment.

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