Answer:
Related to Micro Economics : A, B, C, E.
Related to Macro Economics : D.
Explanation:
Micro Economics is the study of a single individual consumer, producer, industry. Eg - Price of a good
Macro Economics is the study of all consumers, producers, industries of the economy at a whole. Eg - General Price level.
Both Micro Economics and Macro Economics deal with aggregates. But:- Micro Economic aggregates have lower level of aggregation & are contextually less related to wide total, than Macro Economics.
<u>Micro Economics </u>: 'A student's decision about how to allocate his time between studying two subjects' ; 'A firm's decision on which production method to use' :- are related to single economic units.
'The effect of rent control on the housing market' ; 'The effect of externality on the quantity produced by the market' :- are related to only those particular industry markets & not to economy as a whole.
<u>Macro Economics </u>: 'The effect of an increase in income tax on national income' :- is an impact of country's government policy at its whole national income.
Answer:
$100,000
Explanation:
Operating expenses refers to the expenses incurred by the firm at the time of starting the business.
Total amount of annual operating expenses for this income-producing property:
= minor roof repairs + property taxes + maintenance + janitorial + security
= $20,000 + $30,000 + $25,000 + $15,000 + $10,000
= $100,000
Answer:
b.100 in 2002
Explanation:
This question can be solved without any calculations. When calculating consumer price index, the CPI for the year chosen as base is always 100. In this case, 2002 was chosen as the base year and, therefore, the CPI was 100 in 2002. Since that is one of the alternatives, no further steps are required and the answer is alternative b.
Answer:
a. 4.94%
b. 11.48%
Explanation:
Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.
We proceed as follows;
a. From the question;
The debt equity ratio = 1.15
since Equity = 1 ; Then
Total debt + Total equity = 1 + 1.15 = 2.15
Mathematically ;
WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)
Where WACC = 8.6%
Cost of equity = 14%
Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15
Pretax cost of debt = ?
Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15
Tax rate = 21% = 0.21
Substituting these values, we have;
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))
Pretax cost of debt = 4.94%
b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt
8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15
Cost of equity = (8.6%-3.26279%)/(1/2.15)
Cost of equity = 11.48%
Answer:
The broker is doing two different jobs; so it is okay to have two different licenses.
Explanation:
In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.
