Answer:
A) increased by $20 billion
Explanation:
The Change in government spending should have a corresponding increase of the MPC multiplied by the change in taxes.
Therefore,
$16billion = 0.8 × change in taxes
Change in taxes = $16billion /0.8 = $20 billion(increase)
Answer:
Net dollar sales projection for this year = 516,971.00
Explanation:
<em>Projected sales volume </em>
130%× 4,600= 5,980units
<em>Project selling price</em>
=140% × $65
= $91
<em>Total sales value </em>
= $91 × 5980units
= $ 544,180.00
<em>Net dollar sales projection</em>
= Total sales value - Returned merchandise
= 544,180.00 - (5% × 544,180.00 )
= $ 516,971.00
Net dollar sales projection for this year = 516,971.00
Answer: ER(P) = ERX(WX) + ERY(WY)
16 = 13(1-WY) + 9(WY)
16 = 13 - 13WY + 9WY
16 = 13 - 4WY
4WY = 13-16
4WY = -3
WY = -3/4
WY = -0.75
WX = 1 - WY
WX = 1 - (-0.75)
WX = 1 + 0.75
WX = 1.75
The amount to be invested in stock Y = -0.75 x $106,000
= -$79,500
The Beta of the portfolio could be calculated using the formula:
BP = BX(WX) + BY(WY)
BP = 1.14(1.75) + 0.84(-0.75)
BP = 1.995 - 0.63
BP = 1.365
Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500
The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.
Answer:
<u>EQUITY AND LIABILITIES</u>
<u>EQUITY</u>
Retained earnings $ 41,563
Preferred stock $ 8,485
Common stock - Issued $ 8,743
Treasury stock $ 2,450
Share Premium $ 52,878
Total Equity $114,119
Explanation:
The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.
<u />
