Chapter 6‚ Problem 1 1. Assume Yn =11‚600‚ t=0.2 and G=2610 (a) Compute the amount of taxes at natural real GDP The amount of taxes at the natural real GDP is .2 x 11600=2320 (b) Explain why there is a natural employment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP. Because based on the information in the question and answer to part A: 2320‚ we see that taxes(money coming in) is less than government
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Final Finance Exam Notes Definitions: 1. Capital Budgeting is the process of evaluating proposed large‚ long-term investment projects. Capital budgeting is primarily concerned with evaluating investment alternatives. The first step in the capital budgeting process is idea development. A characteristic of capital budgeting is the internal rate of return must be greater than the cost of capital. One of the simplest capital budgeting decision method is the payback method. Capital budgeting
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ETH 125 Week 8 Quiz # 5 Chapter: 17 Age and Disability This is a multiple choice quiz and each item is worth two points for a total possible of 60 points. There is only one correct response for each numbered item‚ and you should use the Schaefer text as needed to determine the best response. Please write the letter of your answer on the line next to each question or highlight your answer. Review your work prior to submission and make sure you have responded to all questions. Save your work
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Chapter 17 Homework CA 17-1) Situation 1- Since the Fair value is lower than the cost your T-account is as follows. Unrealized holding G&L – Income $4200 So the journal entry would look like Unrealized holding G&L –income statement $4200 Fair Value adjustment (trading) $4200 Situation 2- When this change is made for the measurement basis: Security transferred at fair value at the date of transfer‚ which is the new cost basis of the security
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annual compensation of $10‚000 to Wasser‚ and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary‚ and 40% each for Wasser and Nolan. Net income was $150‚000 in 2012 and $180‚000 in 2013. Each partner withdrew $1‚000 for personal use every month during 2012 and 2013. 1/1/12 Balance Interest Compensation % of Net Income Total Clearly 100K 10K 0
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Infection control & OSHA – the lack of not being complaint with the State codes and regulations can cause the project on the on halt due to the safety of contractors’ workers. This would prolong the inspection process until up to city code. 5. Delay in equipment shipment schedule – would cause delay in the setup and deployment stages which would expand the launch date. 6. Lack of resources from contractors – job site will be full of equipment and materials that have yet install. As result
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‚ then ECE’s return on equity (ROE) is (a) 10% (b) 12% (c) 18% (d) 24% If ECE’s net profit margin is 8% ‚ then ECE’s return on equity (ROE) is: (a) 10% (b) 12% (c) 24% (d) 30% If ECE’s earnings are $10 million‚ its price-earnings ratio is (a) 10 (b) 5 (c) 20 (d) Cannot be determined 2 3 Capital budgeting (3 points) Fancypants Fashion is going to purchase new sewing machines worth 50 million Euros to manufacture purple trousers for the coming five years‚ after which purple trousers will be out
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International Trade Finance Assignment-1 Evaluation of Viability of the Transaction of Export of “Mobile Evaluation of Viability of the Transaction of Export of “Mobile Cases” To India from China Submitted To - Submitted By- Fernando Montero Sandeep Singh Buttar (000312846) Amanpreet Kaur (000313147)
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MPF753 FINANCETrimester 2‚ 2012 | Financial Report for Greentech Company | | | Name: Mengtian Li ID: 212018465 Name: Chaowei Jiang ID: 211676326 Word count: 1890 Executive Summary This report aims to investigate whether Australia has the short-run IPO underpricing phenomenon in its stock market‚ followed with a research of the initial returns and the 2-year holding period returns of 52 Australian firms as well as relevant reasons why Facebook’s IPO experienced a failure. Numerous
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β=1 Beta 3 Accept Projects Y and/or Z? Expected Return IRRz WACC = E[RM] IRRY SML Z Y Rf β=1 Beta 4 Accept Projects Y and/or Z? E[R] SML E[RZ] Z WACC = E[RM] Y E[RY] Rf βY β=1 βZ Beta 5 Accept Projects Y and/or Z? E[R] SML Incorrect Z WACC = E[RM] acceptance Incorrect rejection Y Rf β=1 Beta 6 Project Y § IRR of Project Y is lower than WACC § Project Y would be rejected based on WACC §
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