in terms of cost allocation, the overhead amount to be allocated is known as the group of answer choices cost driver cost pool fixed costs budgeted costs

Question a: Gross Domestic Product (GDP) is the sum total of all economic activity within a country over a certain period of time. It is equal to the sum of Consumption (C), Investment (I), Government Spending (G), and Net Exports (X). C/Y* = C/Y, I/Y* = I/Y, X/Y* = X/Y

Question b: After the increase in government spending to 150, the government spending’s share of GDP is now 15% and the nongovernment share is 85%.

Question c: The increase in government spending causes C/Y*, I/Y*, and X/Y* to decrease since the government spending increases while C, I, and X do not change.

Question d: The mechanism by which C/Y*, I/Y*, and X/Y* decrease is through an increase in the denominator, GDP. Since only the numerator (C, I, and X) remains the same, the fraction of each component relative to GDP decreases.

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In the following question, among the conditions given, Skittles has a lower DOL than Starburst, a 10% increase in sales would produce a greater percent increase in income for Skittles than Starburst.

The degree of operating leverage (DOL) measures the sensitivity of a company's operating income to changes in sales. It is calculated by dividing the contribution margin by the operating income.
For Skittles, the DOL can be calculated as follows:
Denominator: Operating income = $3,680,000
Numerator: Contribution margin = $5,430,000
DOL = Numerator/Denominator
DOL = $5,430,000/$3,680,000
DOL = 1.48
For Starburst, the DOL can be calculated as follows:
Denominator: Operating income = $1,272,000
Numerator: Contribution margin = $3,992,000
DOL = Numerator/Denominator
DOL = $3,992,000/$1,272,000
DOL = 3.13
Since Skittles has a lower DOL than Starburst, a 10% increase in sales would produce a greater percent increase in income for Skittles than Starburst.

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A fishing company was formed in Juneau, Alaska. Within ten years a canning plant, a processing plant, and a boat repair facility had also opened in Juneau. This is an example of agglomeration economics.

Agglomeration economics refer to the advantages and cost savings that firms reap by locating near to each other in a region or city. The term "agglomeration" is used to refer to a spatial concentration of firms that arise because of their mutual competitive gains. Agglomeration economies can be external, meaning that they accrue to all firms in a given region, or internal, meaning that they accrue to a single company. In this way, a fishing company being formed in Juneau, Alaska and then having additional facilities like a canning plant, a processing plant, and a boat repair facility open in the area, can be considered an example of agglomeration economics. Fishing is a vital sector of the economy in many countries, particularly those with long coastlines or abundant inland waterways. Fishing companies may operate in many different ways, from small, family-owned businesses to large multinational corporations.

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Nolan's total annual cycle inventory for mangos is 899.

What is annual cycle inventory?

Annual cycle inventory, also known as seasonal inventory, is a type of inventory management that involves stocking up on certain products in anticipation of seasonal demand. It is a strategy that businesses use to ensure they have enough inventory on hand to meet the demand for their products during a particular time of the year.

For example, a retailer selling winter coats may order a large number of coats in the summer months, when the demand for coats is low, to ensure they have enough inventory to meet the demand when the weather turns colder in the winter. By doing so, the retailer can avoid stockouts during peak demand periods and potentially maximize sales and profits.

The annual demand for mangos is 11,991 and the optimal order quantity is 30. That means Nolan places an order of 30 mangos every 399.7 days (11,991 / 30). Every order costs $40 and the holding cost is $1, meaning Nolan spends $41 every 399.7 days. To calculate the total annual cycle inventory, multiply the order cost ($41) by the order period (399.7 days) and divide by 2.

That gives Nolan an annual cycle inventory of 899 mangos.

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The right answer is option C because this is what usually happens when one of the partners tries to expand into a developing market.

A joint venture is a popular way to combine the resources of two firms that are otherwise unrelated in order to fulfill a project or objective while minimizing costs and distributing the associated risk.

Joint ventures between businesses are typically transient alliances.

Unless a distinct legal body is established specifically for the joint venture, the contract that creates joint ventures exposes each company to the liability that comes with a partnership.

Despite the fact that joint-venture partners share control, work processes and resource allocation are not necessarily distributed equally .

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The revenue cannot be recognized on June 1st for I, II, and III. This is because for revenue to be recognized, the performance of services or delivery of goods must be completed.

Revenue recognition is the revenue generated during the normal activities of a business. Income itself represents one element of the basic accounting equation: capital. 

In scenario 1, ABC Lawncare performed the service and was paid, so revenue can be recognized. In scenario 2, the raw material has not been delivered yet, so revenue cannot be recognized yet. In scenario 3, the services were rendered on May 1st, but payment was not collected until June 1st, so revenue cannot be recognized until June 1st.

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The net present value of a microwave is $95.54

The present value of annual savings will be computed using the following formula:

PVA= Payment Amount (yearly savings)/PVA factor

Let's substitute the values given:

PVA= $83/3.352

PVA= $24.76

Let's now compute for the net present value:

NPV= PV of annual savings - cost of the microwave

NPV= ($24.76 × 3.863) - $174

NPV= $95.54

Round off the PVA factor to 3 decimal places: 3.352

Final answer rounded to 2 decimal places: $95.54

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At a lower price of $1.40 per gallon, the quantity demanded of gasoline will be higher than at a higher price of $1.60 per gallon.

Suppose the price of gasoline is $1.60 per gallon. The question is asking if the quantity demanded at the price of $1.60 per gallon is higher or lower than the quantity demanded at the price of $1.40 per gallon.

To answer the question, we need to understand the law of demand, which states that the quantity demanded of a good or service decreases as the price of that good or service increases, and vice versa.

Therefore, we can assume that the quantity demanded of gasoline will decrease as the price increases, and increase as the price decreases.

Therefore, at a lower price of $1.40 per gallon, the quantity demanded of gasoline will be higher than at a higher price of $1.60 per gallon. This is because a lower price will incentivize consumers to buy more gasoline, while a higher price will deter consumers from buying as much gasoline.

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If the APR is 3.7 percent compounded quarterly,  the price of the security is  $270.27.

The price of a perpetuity is the sum of an infinite geometric series, which can be calculated using the following formula:

P = D / r

Where:

P = price of the security

D = the periodic dividend payment

r = the periodic interest rate

In this case, the periodic dividend payment is $2.50 per quarter, and the periodic interest rate is 3.7% per year, compounded quarterly. To convert the annual interest rate to a quarterly rate, we divide by 4:

r = 3.7% / 4 = 0.925%

Substituting the given values into the formula for the price of a perpetuity:

P = $2.50 / 0.00925

P = $270.27

Therefore, the price of the security is $270.27.

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Because of a change in the required rate of return from 11 percent to 13 percent, the bond price of a zero-coupon bond will fall from $1,000 to $860. Therefore, the bond price elasticity for this bond is -1.16.

The formula for calculating bond price elasticity is:

P = ((P₁ - P₀) / ((P₁ + P₀) / 2)) / ((Y₁ - Y₀) / ((Y₁ + Y₀) / 2))

Where:

P₀ = Initial price of the bond

P₁ = New price of the bond

Y₀ = Initial yield to maturity of the bond

Y₁ = New yield to maturity of the bond

Given:

P₀ = $1,000

P₁ = $860

Y₀ = 11%

Y₁ = 13%

Substituting the given values into the formula we will get the bond price elasticity for this bond is -1.16

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Answer:

The future value (FV) is the total value of the investment at the end of the period. The future value is calculated by combining the initial investment with the interest earned over the period.

Explanation:

The formula for calculating the future value is:

FV = PV × (1 + r)n

Where FV is the future value; PV is the present value; r is the interest rate; n is the number of compounding periods

Since the person spends $10 on coffee per week or $500 per year, the present value is $500. Also, the interest rate is 3%, and the number of compounding periods is 6 years. Therefore, we can calculate the future value as:

FV [tex]= PV × (1 + r)^n[/tex]

[tex]= $500 × (1 + 0.03)6[/tex]

[tex]= $500 × 1.191[/tex]

[tex]= $595.50[/tex]

Therefore, the future value of $500 deposited in an account earning 3 percent after 6 years is $595.50.

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A Bill of Lading documents a service that the business has received and is obligated to pay the vendor later. An expense form keeps track of costs that were paid at the time a product was produced.

A debit note is a document that either a seller uses to remind a buyer of ongoing debt responsibilities or a buyer creates when returning items they borrowed. There may be information concerning an immediate payment on the debit note.

Double-entry bookkeeping is a system of documenting transactions in which an entry is made as a debit or credit to at least two accounts for each business transaction.

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The ethical use of hypothesis testing in a business situation is to find out if the claims being made about the product are accurate. Hypothesis testing is a way of determining whether or not a hypothesis is accurate.

Hypothesis testing is an important tool for businesses, as it allows them to test their ideas and theories about the market and the products they sell. This can help businesses to make better decisions about how to market and sell their products, as well as identify potential areas for improvement. It involves a set of statistical methods used to determine whether or not an effect or relationship is real, based on data.

In conclusion, an ethical use of hypothesis testing in a business situation is to test the accuracy of claims made about the product.

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Syntaxes are extremely important for a society.

Sin taxes are intended to deter people from engaging in socially harmful actions. The goal is to make harmful products more expensive to obtain, thereby reducing or eliminating their consumption. They also provide government with a source of revenue.

A sin tax is a fee imposed on products or services deemed hazardous or expensive to society. Tobacco, alcohol, sugary drinks, and gambling are typical types of goods and services.

The primary goals of imposing cigarette taxes are to minimize the use of harmful goods while increasing government revenue. According to research, the sin taxations on both alcohol and cigarettes actively discourage their consumption. The reduction in tobacco and alcohol consumption leads to a reduction in medical problems linked to the use of harmful substances.

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Studying market history can reward us by demonstrating that market cycles are normal and expected and that different economic, political, and social conditions can have an impact on market performance.

Historical analysis of the markets can provide useful insights into the direction and performance of financial instruments, allowing investors to gain an understanding of the context and causes of past market trends. This helps them to recognize opportunities and plan their strategy accordingly.

In particular, studying market history can provide a better understanding of the key drivers of the markets, such as market volatility, trading volume, and overall market performance. By analyzing past market data, investors can better anticipate potential shifts in the market and plan their investments accordingly. Furthermore, they can use historical analysis to identify potential support and resistance levels in the markets, allowing them to enter and exit trades at the optimal time.

Moreover, by studying past market cycles, investors can also get an idea of how various economic and political events may affect the markets in the future. For example, an analysis of the markets following the Great Recession of 2008 can give investors valuable insight into the type of market conditions that can be expected in similar situations in the future. This can help them to prepare for the potential effects of certain economic or political events and plan their investments accordingly.

Overall, studying market history can provide investors with valuable insights that can help them to make more informed investment decisions. It can give them a better understanding of the key drivers of the markets, as well as how various economic and political events may affect the markets in the future. By studying past market cycles, investors can better anticipate potential shifts in the market and plan their investments accordingly.

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In the following question, Allowing credit cards, returns or discounts for early payment affects the recording of "accounts receivable."

Accounts receivable is a term used to describe funds owed to the organization by the debtor for the delivery of goods or services on credit. Accounts receivable are a significant part of a company's balance sheet, and they have a direct impact on the firm's cash flow and profitability.

Accounts receivable are frequently recorded on the balance sheet as an asset. At the end of each reporting period, the accounts receivable balance is recalculated based on the amount of accounts receivable that have been paid off or written off as uncollectible debts. The accounts receivable balance is the starting point for calculating the company's net income, and it also has an impact on the company's tax obligation.

When a customer makes a purchase using a credit card, the company must record it as a debit to its cash account and a credit to its accounts receivable account. If the customer returns the item, the company must issue a credit memo, which will decrease the company's accounts receivable.

If the company grants a discount to a customer for early payment, the discount will be recorded as a debit to the company's discount account and a credit to the customer's account receivable account.

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Absorption costing treats fixed manufacturing overhead as a option (d) product

Absorption costing is a method of accounting for the cost of producing a product that includes all direct costs (such as direct materials and direct labor) and indirect costs (such as manufacturing overhead) associated with the production of that product.. In absorption costing, fixed manufacturing overhead costs are considered to be a product cost because they are part of the cost of producing a unit of product.

This means that fixed manufacturing overhead costs are absorbed into the cost of each unit of product, along with variable manufacturing costs such as direct materials and direct labor.

Therefore, the correct answer is (d) product.

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Using the midpoint formula, the price elasticity of demand for hot dogs is inelastic. (option B)

We can compute the price elasticity of demand using the midpoint formula as follows:

Elasticity = ((Q2 - Q1) / ((Q1 + Q2) / 2)) / ((P2 - P1) / ((P1 + P2) / 2))

where:

Q1 = 400

Q2 = 500

P1 = $2.00

P2 = $1.50

Hence,

Elasticity = ((500 - 400) / ((400 + 500) / 2)) / (($1.50 - $2.00) / (($2.00 + $1.50) / 2))

Elasticity = (100 / 450) / (-$0.5 / $1.75)

Elasticity = -0.777

Since the absolute value of the elasticity is less than 1, the demand for hot dogs is inelastic. (option  B)

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When advertising agencies, trade associations, and marketing organizations develop standards to control potentially deceptive promotion tactics, they are engaged in self-regulation.

What is self-regulation? Self-regulation refers to a process by which an industry establishes and enforces standards for its members, typically as an alternative to government regulation. Self-regulation is commonly used in media and advertising, finance, and other industries. What is a deceptive promotional strategy? Deceptive promotion is an advertisement, promotional strategy, or sales strategy that intentionally or unintentionally misleads consumers into believing something false or deceptive. False advertising, bait-and-switch schemes, and unproven statements about a product's quality or effectiveness are all examples of deceptive promotion tactics. Why is self-regulation necessary? When an industry self-regulates, it establishes standards that must be met by its members. Members who fail to comply with these standards may be expelled or punished in some other way. Self-regulation can be a more effective way to safeguard consumers than government regulation in some situations, but it relies on the industry's willingness to set and enforce standards. What are the benefits of self-regulation? Self-regulation has several benefits, including the ability to establish standards quickly, the ability to modify standards as needed, and the ability to resolve disputes among members without involving the government. Additionally, self-regulation can be less costly than government regulation.

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It is important for your credit report to be completely accurate because it affects your ability to obtain credit, loans, or even a job in the future. Inaccuracies on your credit report can result in higher interest rates, being denied credit, and even legal issues.

A credit report is a detailed report that shows an individual's credit history. It contains information about how much credit they have been given, how much they have used, and how much they have paid back.

Credit reports are utilized by lenders, credit card companies, and other financial institutions to determine the risk associated with lending an individual money or credit. These reports help companies determine if an individual is a reliable borrower, and it also helps them determine the terms and conditions of lending money or credit.

If there are errors on a credit report, a lender may think the individual is a riskier borrower than they actually are, which could result in higher interest rates, being denied credit, and even legal issues. Therefore, it is essential that credit reports be accurate.

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Kamal works in a restaurant as a runner. Most nights he is busy, but on slow evenings, he finds himself bored and disengaged. As a result, his manager suggests he add extra tasks to his role. This relates to the skill variety dimension of the job characteristics model.

The Job Characteristics Model (JCM) is a work design theory that aims to enhance work motivation and productivity by increasing employees' psychological states that contribute to performance. The model emphasizes five fundamental dimensions of work that influence employees' motivation, satisfaction, and performance.

Skill variety is the degree to which the work necessitates different skills and talents to accomplish, implying that employees can perform a variety of tasks rather than merely concentrating on a limited, routine job. It refers to the assortment of tasks performed in a job that requires the use of a variety of skills and abilities.

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The innovation characteristic of Phineas’s product that will help in wide acceptance of his product in the local market is its option e. relative advantage.

Relative advantage is one of the innovation characteristics that represents the degree to which a new product is perceived as better than the existing product by customers and due to competitive price, customers are more attracted to it. When the new product has a significant relative advantage over the existing products in the market, it is more likely to be accepted by the customers.

Trialability is another innovation characteristic that represents the degree to which an innovation can be experimented on a limited basis. It is believed that innovations that are easily and inexpensively tried will be adopted faster.

Observability is another innovation characteristic that represents the degree to which the result of an innovation is visible to others. It is believed that when an innovation is highly visible, the likelihood of adoption increases.

Complexity is another innovation characteristic that represents the degree to which an innovation is easy to understand and use.

Compatibility is another innovation characteristic that represents the degree to which an innovation is consistent with the needs, values, and experiences of potential adopters. It is believed that innovations that are consistent with the values and experiences of the potential adopters will be more likely to be adopted.

Hence, relative advantage (option e.) is the innovation characteristic which will help Phineas in wide acceptance of his product.

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The only option that could result in the price change is c. Gas prices have significantly risen in the past day.

Gas prices are affected by the production cost, crude oil prices, local taxes, and supply and demand in the market. Gas prices can be volatile and often fluctuate. When gas prices increase, it can result in the rise in the price of a ride share, taxi, or bus ride. The price change could be either temporary or permanent.

When gas prices rise, companies that provide ride-sharing services such as Uber and Lyft increase the fares to offset the high fuel costs, which would affect their bottom line. Options A, B, and D are irrelevant and cannot result in the price change above.

Option A: There is an increase in the number of Uber drivers available. The number of drivers on the road does not affect the price of a ride, and it has no effect on supply and demand. It is the price mechanism that affects supply and demand.

Option B: A local convention has increased traffic in the area, resulting in a longer travel time for your trip. An increase in traffic does not affect the price of a ride. The fares are based on the distance covered and not the travel time.

Option D: The price of taxicab rides has fallen. A decrease in the price of taxicab rides does not affect the price of an Uber ride. The two are different ride-hailing services that operate differently.

So, the only option guiding the forces of increase in the price of taxi fares is option c.

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If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on retention strategies. Option B is the correct answer.

Customer retention is a strategic marketing technique that involves increasing customer loyalty and repeat business from current customers. It's critical because retaining current clients is less expensive than acquiring new ones. A retention strategy's main aim is to keep current customers engaged, active, and happy with the company's goods or services. This helps to improve customer loyalty, satisfaction, and long-term sales.

The correct answer is B. retention.

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Canada is a postindustrial market economy because of its emphasis on service-based sectors, high-value knowledge-based businesses, economic integration, social safety net, infrastructure, and transportation system.

Due to a number of important features, Canada's economy is classified as a postindustrial market economy. First, there has been a transition in the economy away from manufacturing and heavy industry and towards service-based sectors like banking, healthcare, and information technology. Also, a focus is placed on high-value, knowledge-based businesses that demand specialized training and education, such as digital media, biotechnology, and research and development. Canada also has a high degree of economic integration with other nations, which is fueled by trade, investment, and involvement in international supply chains. In addition to promoting social equity and economic stability, the nation's robust social safety net and government funding for social programs also facilitate the smooth flow of people and things across the nation. Overall, the highly trained workforce, innovation, and integration into the international market are the hallmarks of Canada's postindustrial market economy.

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Answer:

Forrester Research repeatedly confirms there is a strong relationship between the quality of a firm's customer experience, which in turn increases revenue.

Explanation

What is customer experience?

Customer experience is the overall perception of the customer of the company or its brand, as described by the interactions that the customer has with the company. For instance, a customer who has a satisfactory experience of purchasing and using a product from a particular company may have positive views and vice versa.

What is the impact of customer experience on revenue?

Customer experience (CX) has a significant influence on the revenue of an organization. Companies with better customer experience tend to be more successful than their counterparts, which makes it a critical factor for growth. A survey conducted by Forrester in 2016 found that the revenue of companies that prioritize CX outperforms those that do not by 5.1 times over a three-year period.Thus, the answer to the given question is that there is a strong relationship between the quality of a firm's customer experience, which in turn increases revenue.

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True. All accounts that appear in the balance sheet, including retained earnings, are permanent accounts, and we carry forward their balances from period to period.

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and equity. The balance sheet is a snapshot of the company's financial position at a single point in time, detailing what the company owns (assets), what it owes (liabilities), and the value of shareholder equity.

Balance sheet accounts are classified into two categories: permanent accounts and temporary accounts. The accounts that appear in the balance sheet are permanent accounts, while the accounts that appear in the income statement and statement of cash flows are temporary accounts.

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Trung and Dylan have planned to use Equity financing for the expansion of their business. The correct answer is C. equity financing.

It can be venture capital (VC) or angel investor in order to raise funds for business expansion. Equity financing, unlike debt financing, does not require a regular payment of interest or principal, making it a better option for businesses with uncertain future cash flows.

In the scenario given, the partners have decided to sell stock in their business to family members, friends, and employees. This process is known as equity financing. So, the correct answer is C. equity financing.

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To eliminate an AD shortfall of $120 billion when the economy has an MPC of 0.75, the government should decrease taxes by $30 billion. (option c)

To eliminate an AD (Aggregate Demand) shortfall of $120 billion when the economy has an MPC (Marginal Propensity to Consume) of 0.75, the government should decrease taxes by:

Change in aggregate demand = 1 / (1 - MPC) x Change in autonomous spending

where MPC = 0.75 and Change in aggregate demand = AD shortfall = $120 billion

Therefore, the equation becomes:

$120 billion = 1 / (1 - 0.75) x Change in autonomous spending

$120 billion = 4 x Change in autonomous spending

Change in autonomous spending = $30 billion

Since the government wants to decrease taxes to eliminate the AD shortfall, the decrease in taxes should be equal to the change in autonomous spending, which is $30 billion. Therefore, the correct answer is (c) $30 billion.

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If the company were to issue $100,000 of 10% bonds instead of $100,000 in stock, the return on equity would be 34.5%.

Return on equity (ROE) is a financial ratio that measures the profitability of a company by calculating the amount of net income returned as a percentage of shareholder's equity. ROE is calculated as:

ROE = Net Income / Shareholder's Equity

Assuming income before interest and taxes is estimated to be $100,000, income taxes are 21%, and stockholders' equity is initially $200,000, the net income after taxes would be:

Net Income = Income Before Taxes x (1 - Tax Rate)

Net Income = $100,000 x (1 - 0.21)

Net Income = $79,000

If the company were to issue $100,000 of 10% bonds instead of $100,000 in stock, the interest expense would be:

Interest Expense = Bond Amount x Interest Rate

Interest Expense = $100,000 x 0.10

Interest Expense = $10,000

This interest expense would be deducted from the net income before calculating the ROE. Therefore, the net income available to shareholders would be:

Net Income Available to Shareholders = Net Income - Interest Expense

Net Income Available to Shareholders = $79,000 - $10,000

Net Income Available to Shareholders = $69,000

Assuming the company issues $100,000 in bonds, the shareholder's equity would remain at $200,000, since there is no change in the amount of equity.

Using the formula for ROE, we can calculate the ROE with the bond issue as:

ROE = Net Income Available to Shareholders / Shareholder's Equity

ROE = $69,000 / $200,000

ROE = 0.345 or 34.5%

Therefore, the ROE would be 34.5% if the company were to issue $100,000 of 10% bonds instead of $100,000 in stock. This is lower than the ROE that would be obtained if the company were to issue stock, as the interest expense associated with the bonds reduces the net income available to shareholders.

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