Question : (TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called 9. Question : (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that 10. Question
9. Given: wages, salaries, and fringe benefits = $7.2 trillion; interest = $550 billion; profits = $300 billion; rent = $50 billion; indirect business taxes = $400 billion; and depreciation = $600 billion. Find National Income, NNP, and GDP. 10. Given: Consumption = $5.8 trillion; investment = $1 trillion; government spending = $1.2 trillion; indirect business taxes = $300 billion; imports = $650 billion; and exports = $550 billion.
Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows. • Investors are risk averse. Other things equal they prefer to pay more for stocks that are less risky and that have relatively certain cash flows than other stocks. When determining the value of a firm, which of the following statements is ture? • A financial asset is considered to have value if it has the ability to generate positive cash flows.
If Marriott decide to deleverage totally their capital structure, their equity beta will come down significantly. Indeed, the more debt Marriott have, the more risky is their equity (because their financial risk increases with their leverage ratio, even if their operational risk remains the same). Actually, debt holders are the first to be repaid through cash flows. However, deleveraging the capital structure doesn't mean that the Marriott's cost of capital will decrease. Indeed, the cost of debt is lower than the cost of equity (even if the equity beta is lower).
Inventory turnover 56,534,254 / 8,517,203 = 6.6 * Profitability ratios 5. Asset turnover $56,534,254 / 34,825,498 = 1.6 times 6. Profit margin $2,430,872 / 56,534,254 = 4.3 7. Return on assets $2,430,872 / 34,825,498 = 6.9 8. Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9.
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative
3. Based on the results in Appendix B, different methods of recruitment are successful or failures based upon the market. The most costly and least beneficial method does seem to be the kiosk method. There is a large up front cost and the benefits and recruitment results do not support the cost. The referral program seems to be successful in the markets in where it is used.
This will lead to lower prices as average costs went down. (econ of scale diagram) Economies of scale can occur to different reasons. For example technical, which is if one firm has low fixed costs, then mergers will have low average costs, which is good. Also they might have better interest rates when merged together. A vertical merger would normally benefit less from economies of scale, as it will not receive an advantage from technical economies of scale.
If inventory levels are stable or increasing, an argument which is not an advantage of the LIFO method as compared to FIFO is a. income taxes tend to be reduced in periods of rising prices. b. cost of goods sold tends to be stated at approximately current cost on the income statement. c. cost assignments typically parallel the physical flow of goods. d. income tends to be smoothed as prices change over time. MULTIPLE
Total liabilities ÷ Total stockholders' equity 283,800÷292,200=97.1% 248,000÷268,000 = 92.5% j. (Income before taxes+ Interest) Interest (55,000 + 8,000) ÷ 8,000 = 7.9 times (54,800 + 7,200) ÷ 7,200 = 8.6 times k. Plant assets ÷ Long-term debt 270,000 ÷ 132,000 = 2.05 : 1 255,000 ÷ 127,000 = 2.01 : 1 l. Net income ÷ Net sales 32,000 ÷ 230,000 = 13.9% 32,800 ÷ 210,000 = 15.6% m. Net sales ÷ Avg. total assets 230,000 ÷ 546,000=0.42 210,000 ÷ 516,000=0.41* n. Net income ÷ Avg. total assets OR (l.) x (m.) 32,000 ÷ 546,000 = 5.9% 32,800 ÷ 516,000 = 6.4%* o. Net income ÷ Avg.