Answer:
c. protect lessees against lessors who abuse leased assets.
Explanation:
The residual value guarantee may be defined as a guarantee that is made to the lessor where the value of an underlying asset will become at least some specified amount at the end of the lease. The guarantee is given by the party unrelated to a lessor.
The residual value guarantee provides to protect the lessor against the lessees who tries to abuse the leased assets. It does not protect the lessees against the lessors.
A firm has a tax burden of 0.6, a leverage ratio of 1.2, an interest burden of 0.7, and a return-on-sales ratio of 14%. The firm generates $2.64 in sales per dollar of assets. What is the firm's ROE
Answer:
18.63%
Explanation:
Calculation for the firm's ROE
Using this formula for
ROE=(Tax burden)(Leverage ratio)(Interest burden)(Return-on-sales ratio)(Sales per dollar of assets)
Let plug in the formula
ROE = (.6)(1.2)(.7)(.14)(2.64)
ROE=18.63%
Therefore the firm's ROE is 18.63%
Andrews Corp. ended the year carrying $46,369,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
a. $264,018,840
b. $191,318,000
c. $67,711,000
d. $104,076,000
Answer: $46,369,000
Explanation:
At the end of the year, all the costs associated with inventory and operations have been dealt with in the income statement.
This means that if the entire inventory were sold at current prices which is $46,369,000, the addition to revenue will be what the goods were sold for which is the current price.
Options do not have this answer but that is it.
If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates
Answer:
a. Increase / Increase
Explanation:
Since in the question it is mentioned that there is an increase in taxes and government spending so it represents the positive stimuls as it occurs because the government incurrent all the revenue for the public welfare due to which there is a rise in the government expenditure that boost the aggregate demand also the GDP value would be rise because of the multiplier effect
Therefore the employment level and the rate of interest would also increased
Answer:
The correct answer was increase / no change
Explanation:
Just took the test
Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 4.5%/year compounded monthly. If the future value of the annuity after 11 years is $55,000, what was the size of each payment?
Answer:
The size of each payment was $322.78.
Explanation:
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value of the amount after 11 years = $55,000
M = Monthly payment = ?
r = Monthly interest rate = 4.5% / 12 = 0.045 / 12 = 0.00375
n = number of months = 11 years * 12 = 132
Substituting the values into equation (1) and solve for M, we have:
$55,000 = M * (((1 + 0.00375)^132 - 1) / 0.00375)
$55,000 = M * 170.394706737074
M = $55,000 / 170.394706737074
M = $322.779979808101
Rounding to 2 decimal places, we have:
M = $322.78
Therefore, the size of each payment was $322.78.
The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.
Answer:
The labor participation rate would not change because it counts the labor force as a percentage of the total adult population, and the labor force includes both the number of people employed and the number of people unemployed, so, even if those working part-time were counted as unemployed by the BLS, they would still be part of the Labor Force.
The labor participation rate formula is:
Labor Participation Rate = (Labor Force / Total Adult Population) x 100
The unemployment rate would indeed change, because it counts the number of unemployed as a percentage of the labor force. If those working part-time were counted as unemployed by the BLS, the number of people unemployed would obviously spike.
The formula is:
Unemployment Rate = (Number of Unemployed / Labor Force) x 100
