The value of a firm is derived using the firm's ---- rate and its ---- rate.

Answers

Answer 1

The value of a firm is derived using the firm's discount rate and its growth rate.

The discount rate is the rate at which future cash flows are discounted to their present value, while the growth rate is the rate at which future cash flows are expected to increase over time. The growth rate is a term used in business valuation that refers to the projected rate of increase of a company's earnings or revenue in the future.

In order to perform a financial valuation, an analyst must make predictions about future growth rates based on a company's history and other data sources.

The growth rate is a key factor in determining the value of a business. The rate at which earnings or revenue are projected to rise is known as the growth rate. The growth rate has an impact on the valuation of a company because it affects the level of future cash flows that will be generated by the firm.

This rate reflects the time value of money and the risk associated with an investment. A higher discount rate implies greater risk, which leads to lower valuations. Conversely, a lower discount rate implies lower risk, which leads to higher valuations

.The discount rate is used to calculate the net present value of a company's future cash flows. The net present value is the sum of the present values of all future cash flows that are expected to be generated by the business.

This value is an estimate of the total value of the business.

For more such questions on firm

https://brainly.com/question/28039495

#SPJ11


Related Questions

whatever the firm's quantity of production, ____ must exceed total costs if it is to earn a profit.

Answers

No matter how much is produced by the company, total revenue must surpass total costs in order for the business to be profitable.

If total income and total cost are equal, what happens?

When the whole income matches the total cost, the corporation does not make any more profit but also does not lose any money. The point at which revenues and costs are equal is known as the break even point.

That occurs when total revenue surpasses whole expenses.

When total revenues exceed total costs, the business is in the black. Profit is maximized at 10 cans per day, when the gap between total income and total cost is the biggest.

What is it called when expenses exceed income?

There is a net loss when total expenses (including taxes, fees, interest, and depreciation) exceed the income or revenue made over a given time frame. Compare and contrast a net loss with a net profit, often known as after-tax income or net income.

Learn more about break even point: https://brainly.com/question/29063970

#SPJ1

shirley, a u.s. citizen, has invented a solar-powered amplifier that can be used in small speakers, such as bluetooth speakers, to increase the volume up to five times. she decides to apply for a patent for this device in the united states. if she receives approval for the patent, what would be the duration of patent protection?

Answers

Shirley, a U.S. citizen, has invented a solar-powered amplifier that can be used in small speakers, such as Bluetooth speakers, to increase the volume up to five times. She decides to apply for a patent for this device in the United States. If she receives approval for the patent, the duration of patent protection would be 20 years.

What is a patent?

A patent is a legal document granted by a government that gives the patent holder exclusive rights to use, manufacture, and sell an invention for a certain amount of time. The inventor may gain the right to prevent other people from manufacturing, selling, or utilizing their invention. There are a few requirements for getting a patent, such as uniqueness, non-obviousness, usefulness, and public disclosure.

What is the duration of patent protection?

The duration of patent protection is the length of time during which the patent holder may exercise their exclusive rights. Patent protection lasts for a set amount of time, typically 20 years from the filing date of the patent application, according to the United States Patent and Trademark Office (USPTO). After that time, the patent holder must relinquish their exclusive rights, and the invention enters the public domain, becoming available for others to utilize or sell.

Learn more about patent here:

https://brainly.com/app/ask?q=Patent+

#SPJ11

Angerstein Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. In the Assembly Department, the material received from Printing is assembled into individual calendars and bound. Each department maintains its own Work in Process Inventory, and costs are assigned using weighted average process costing. In Assembly, conversion costs are incurred evenly throughout the process; direct material is added at the end of the process. For September 2013, the following production and cost information is available for the Assembly Department: Beginning WIP Inventory: 5,000 calendars (30 percent complete as to conversion); transferred in cost, $7,550; conversion cost, $1,093Transferred in during September: 80,000 calendarsCurrent period costs: transferred in, $80,000; direct material, $10,270; conversion, $13,991Ending WIP Inventory: 6,000 calendars (80 percent complete as to conversion)For the Assembly Department, compute the following:a. equivalent units of production for each cost componentb. cost per EUP for each cost componentc. cost transferred to Finished Goods Inventoryd. cost of ending WIP Inventory

Answers

Angerstein Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. The total Cost of Ending WIP Inventory: $9,636

Equivalent Units of Production (EUP) for each cost component:
• Beginning WIP Inventory (30% complete): 5,000 x 30% = 1,500 equivalent units
• Transferred in during September: 80,000 equivalent units
• Total EUP for Conversion Costs: 81,500 equivalent units
• Total EUP for Direct Materials: 86,500 equivalent units

Cost per EUP for each cost component:
• Conversion Costs: $1,093 + $13,991 = $15,084 total cost / 81,500 EUP = $0.185 per EUP
• Direct Materials: $80,000 + $10,270 = $90,270 total cost / 86,500 EUP = $1.045 per EUP

Cost Transferred to Finished Goods Inventory:
• Total EUP: 86,500 equivalent units
• Total Cost: $90,270 + $15,084 = $105,354
• Cost Transferred to Finished Goods Inventory: $105,354

Cost of Ending WIP Inventory:
• Ending WIP Inventory: 6,000 x 80% = 4,800 equivalent units
• Total Cost: 4,800 x ($0.185 + $1.045) = $9,636
• Cost of Ending WIP Inventory: $9,636

For more questions on Inventory

https://brainly.com/question/10117829

#SPJ11

Which of the following would most likely be included in the positive side of the U.S. current account balance?
a. U.S. foreign aid sent to as disaster relief to Haiti
b. interest payments to foreign investors invested in the U.S.
c. money spent by U.S. tourists in Europe
d. money earned by U.S. firms in Europe

Answers

The one that is most likely to be included in the positive side of the U.S. current account balance is the money earned by U.S. firms in Europe. Therefore, the correct answer is D.

Current account refers to that part of the balance of payments that measures the inflow and outflow of goods, services, investment incomes, and unilateral transfers. The current account comprises four components: trade in goods, trade in services, investment income, and unilateral transfers.

The US current account balance reflects the overall trade balance of the US. A trade deficit occurs when imports exceed exports, resulting in a negative current account balance. A trade surplus is recorded when exports exceed imports, resulting in a positive current account balance. Thus, money earned by US firms in Europe is most likely to be included in the positive side of the US current account balance.

Learn more about current account at https://brainly.com/question/28182592

#SPJ11

Let's suppose the marginal propensity to consume is 0.8. If the government cuts taxes by $500 billion and households believe the tax cuts to be permanent, by how much would national expenditures increase, assuming no crowding out?

Answers

Given the assumptions of a marginal propensity to consume of 0.8 and a government tax cut of $500 billion that is assumed to be permanent, the resulting increase in national expenditure will be $400 billion.

The marginal propensity to consume (MPC) is the fraction of any increase in disposable income (after-tax income) that households will consume rather than save. In this case, the MPC is assumed to be 0.8, which means that, for every dollar of increased disposable income, households will consume 80 cents and save 20 cents.

When the government cuts taxes by $500 billion, it is assumed that households will view this as a permanent increase in their disposable income. As such, they will spend 80% of this, or $400 billion. This increase in consumption is the increase in national expenditures that will result from the tax cut.

In other words, when the MPC is 0.8 and the government cuts taxes by $500 billion, households will increase their consumption by $400 billion, resulting in an overall increase in national expenditures of $400 billion.

Learn more about  marginal propensity:https://brainly.com/question/17930875

#SPJ11

The economic growth model predicts that poor countries will grow __________ than richer countries.A) slowerB) in a more stable mannerC) faster

Answers

In the following question, in the missing blank, option (A). The economic growth model predicts that poor countries will grow "slower" than richer countries.

What is economic growth? Economic growth is a measure of the increase in the economic activity of a region or country over time. It is frequently expressed as a percentage and can be calculated in a number of ways. The GDP, or gross domestic product, is one of the most commonly used measures of economic growth. In contrast to wealth, which is a stock concept, economic growth is a flow concept, implying that the quantity in question rises over time.

The following are some of the reasons for economic growth: Increasing population Capital formation, increased productivity of factors of production, and technological advancement are some of the reasons why economic growth occurs. It's important to note that economic growth is only part of the picture. Economic growth is beneficial, but only if it is equitably distributed. Economic growth can exacerbate inequality by benefiting the wealthy, who can more readily profit from the increased opportunities that come with economic growth. So, in the economic growth model, poor countries will grow slower than richer countries.

For more such questions on economic growth

https://brainly.com/question/29621837

#SPJ11

art has come out with a new and improved product. as a result, the firm projects an roe of 25%, and it will maintain a plowback ratio of 0.20. its earnings this coming year will be $3 per share. investors expect a 12% rate of return on the stock. what price do you expect art shares to sell for in 4 years?

Answers

In four years, I anticipate art shares selling for $41.68.

What is the current value of the stock?

Market value is another name for the current price. This value is the price at which a share of stock or any other security was last traded. In an open market, the current price serves as a starting point.

The amount Does Value Cost?

The cost of equity is the company's required return on an investment or project. For instance, the required return to justify the initiative is determined by the cost of equity when a company decides whether to take on new financing.

Dividend per share= $3

Divided=1-retained profits=1 - 0.2= 0.8

Cost of equity= 12%

Growth rate= 25%*.2= 5%

The formula is;

Current Stock price=Dividend/(cost of equity-growth rate)

Current stock price=$3(0.8)/(0.12-0.05)=$34.29

Share price after 4 year will be=$34.29 (1+ 5%)^4=$41.68

Learn more about cost of equity: https://brainly.com/question/14041475

#SPJ1

suppose an individual spends 65 cents of each additional dollar of disposable income she receives and saves the rest. in this case, mpc=

Answers

If the individual spends 65 cents of each additional dollar of disposable income, the MPC is 0.65.

MPC stands for Marginal Propensity to Consume. It is the fraction or percentage of an additional unit of disposable income that a consumer spends on consumption. In other words, it represents the change in consumer spending that results from a change in disposable income.

For example, if a consumer receives an additional $100 in disposable income and spends $80 of it, the MPC would be 0.8 ($80/$100).

In the problem, the individual spends 65 cents of each additional dollar of disposable income she receives and saves the rest. It means:

MPC = 65 cents/ 1 dollar

MPC = 65 cents/100 cents = 0.65

Learn more about MPC here:

https://brainly.com/question/20376297

#SPJ11

Seymore Corp. has the following number of shares of stock outstanding: Cumulative preferred stock, 8%, $100 par Common stock, $12 par 2,000 shares 20,000 shares Seymore will distribute $80,000 to the two classes of stockholders this year. Not counting the current year, the preferred stoc dividends are one year in arrears. Indicate whether each of the following statements is true or false. a) Preferred stockholders will receive $16,000 of cash dividends in the current year. b) After all required preferred dividends are paid, preferred and common stockholders will share the remaining dividend. c) Common stockholders will receive $48,000 of cash dividend in the current year. d) The amount of common dividends per share that stockholders will receive in the current year is $6.40. e) The amount of dividends in arrears is zero after the $80,000 of dividends have been paid.

Answers

From the above statement about preferred stocks, the correct answers are a, b, and e. While c, and d are inappropriate statements.

a) Preferred stockholders will receive $16,000 of cash dividends in the current year. True. The preferred stockholders will receive $16,000 of cash dividends in the current year, as there are 8% cumulative preferred stock with $100 par value, and 2000 shares outstanding, which totals to $16,000.

b) After all required preferred dividends are paid, preferred and common stockholders will share the remaining dividend. True. After the $16,000 of preferred dividends have been paid, the remaining $64,000 will be shared between preferred and common stockholders.

c) Common stockholders will receive $48,000 of cash dividend in the current year. False. Common stockholders will receive $64,000 of cash dividend in the current year. This is calculated by subtracting the $16,000 of preferred dividends from the total $80,000 of dividends.

d) The amount of common dividends per share that stockholders will receive in the current year is $6.40. False. The amount of common dividends per share that stockholders will receive in the current year is $3.20. This is calculated by dividing the $64,000 of common dividends by the 20,000 shares of common stock.

e) The amount of dividends in arrears is zero after the $80,000 of dividends have been paid. True. After the $80,000 of dividends have been paid, the amount of dividends in arrears is zero.

Learn more about preferred stocks: brainly.com/question/18068539

#SPJ11

Lacy is a single taxpayer. In 2022, her taxable income is $44,000. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Required:
All of her income is salary from her employer.
Her $44,000 of taxable income includes $1,000 of qualified dividends.
Her $44,000 of taxable income includes $5,000 of qualified dividends

Answers

If a single taxpayer has an ordinary taxable income of $44,000 then tax liability is $4,807.50 add 22% of the excess over $41,775. Salary income is taxed with ordinary tax rates.

In this case, $1,000 in qualifying dividends, which are taxed at a lower rate than regular income, is included in Lacy's $44,000 taxable income. Her tax obligation would be $8,164 based on the rates for capital gains and dividends.

Her taxable income of $44,000 includes $5,000 in eligible dividends.

Lacy's taxable income in this instance is $44,000, which also includes $5,000 in eligible dividends. Her tax obligation is $8,764 based on the Dividends and Capital Gains Tax Rates.

Learn more about taxable income, here;

https://brainly.com/question/30617249

#SPJ12

From a macroeconomic point of view, which of the following is a source of demand for financial capital?
A. savings by households and firms
B. foreign financial investment
C. domestic household private savings
D. government borrowing

Answers

From a macroeconomic point of view, option (A) savings by households and firms are a source of demand for financial capital.

Macroeconomics is a branch of economics that studies the economy as a whole rather than individual markets, industries, or firms. It looks at economy-wide phenomena such as gross domestic product (GDP), inflation, employment, and trade.It studies how the overall economy works, including its strengths and vulnerabilities. A source of demand for financial capital. A source of demand for financial capital is savings by households and firms, from a macroeconomic standpoint.Financial capital refers to cash, checking accounts, savings accounts, money market accounts, and other assets that can be transformed into cash without difficulty.The demand for financial capital is determined by households, businesses, and governments. The most important factors driving this demand are rates of interest and investment returns, liquidity requirements, and the availability of various sources of funding. Thus option (A) is the correct answer.

To know more about Macroeconomics: https://brainly.com/question/24114380
#SPJ11

Given the information below for Seger Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Year 2014 2015 2016 2017 2018 2019
Price $ 103.50 $ 109.40 $ 108.10 $ 105.60 $ 127.10 $ 142.50
EPS 4.59 5.30 6.10 6.80 7.75 8.75
CFPS 8.02 8.84 9.16 10.87 12.25 13.40
SPS 60.10 65.10 64.50 68.00 79.20 87.20

Answers

Seger Corporation, the expected share price at the end of 2020 using price ratio analysis is $166.01.

Price ratio analysis is a method of analyzing a company's financial information using its stock prices, earnings per share, and other financial measures.

Stock analysts use a range of ratios to analyze a company's earnings and make investment decisions. Price ratio analysis is a valuable tool for determining whether a company's stock is overpriced or underpriced.

The price-earnings ratio, price-to-sales ratio, and price-to-cash flow ratio are the three most popular ratios used in price ratio analysis.

Therefore, the expected share price of a company is calculated by multiplying the expected earnings per share by the price-earnings ratio.

To calculate the expected share price of Seger Corporation, we must first compute the Price to Earnings Ratio (P/E Ratio), which is the ratio of the stock price to earnings per share. To calculate the P/E Ratio, divide the stock price by the earnings per share.

P/E Ratio = Stock Price / Earnings Per Share

2014 P/E Ratio = 103.5 / 4.59 = 22.54

2015 P/E Ratio = 109.4 / 5.30 = 20.63

2016 P/E Ratio = 108.1 / 6.10 = 17.73

2017 P/E Ratio = 105.6 / 6.80 = 15.52

2018 P/E Ratio = 127.1 / 7.75 = 16.40

2019 P/E Ratio = 142.5 / 8.75 = 16.28

The average P/E Ratio is: P/E Ratio = (22.54 + 20.63 + 17.73 + 15.52 + 16.4 + 16.28) / 6 = 18.76

To calculate the expected share price, multiply the average P/E ratio by the expected EPS.

Expected Share Price = Expected EPS x P/E Ratio

For Seger Corporation, the expected EPS can be calculated using the historical growth rates.

The average historical (arithmetic) growth rate for EPS is:((5.30-4.59)/4.59 + (6.10-5.30)/5.30 + (6.80-6.10)/6.10 + (7.75-6.80)/6.80 + (8.75-7.75)/7.75) / 5 = 12.65%

Therefore, expected EPS for 2020 = $8.75 x (1 + 12.65%) = $9.86

Therefore, the expected share price at the end of 2020 using price ratio analysis is:

Expected Share Price = Expected EPS x P/E Ratio= $9.86 x 18.76= $184.96

Thus, the expected share price at the end of 2020 using price ratio analysis for Seger Corporation is $166.01.

Learn more about the expected share price here:

https://brainly.com/question/30176349

#SPJ11

if analysts expect that the demand for loanable funds will decrease and the supply of loanable funds will increase, they would most likely expect interest rates to and prices of existing bonds to a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase

Answers

Answer: The correct answer is d. decrease; increase. If analysts expect that the demand for loanable funds will decrease and the supply of loanable funds will increase, they would most likely expect interest rates to decrease and prices of existing bonds to decrease.


Explanation:

The demand for loanable funds refers to the total amount of loans that borrowers are willing to obtain at any given interest rate. This demand is inversely related to the interest rate. That is, when interest rates are low, borrowers are more willing to borrow, and when interest rates are high, they are less willing to borrow.

The total amount of loans that lenders are willing to lend at a given interest rate is referred to as the supply of loanable funds. This supply is directly proportional to the interest rate. When interest rates are low, lenders are less willing to lend, and when interest rates are high, they are more willing to lend.

When demand rises and supply remains constant, the equilibrium interest rate rises, and the quantity of loanable funds rises.

A decrease in the supply of loanable funds will increase the equilibrium interest rate and decrease the quantity of loanable funds.

The correct answer is d. decrease; increase.

Learn more about interest rates here:

https://brainly.com/question/25720319

#SPJ11

which of the following statements about the managerial system of marketing life insurance is (are) true? i. it uses branch offices run by independent agents who represent several companies. ii. the branch manager is an employee of the insurer who has the responsibility for hiring and training new agents.

Answers

Option ii. option, the branch manager is an employee of the insurer who has the responsibility for hiring and training new agents is the correct answer.

What is marketing life insurance?

There are four major systems of marketing life insurance. They include career, personal producing general agents, managerial systems, and independent agency systems.

The managerial system uses branch offices run by independent agents who represent several companies. The branch manager is an employee of the insurer who has the responsibility for hiring and training new agents.

This system provides the advantages of a large company in terms of training, service, and security while offering flexibility and entrepreneurial opportunities associated with the independent agency system.

This system is beneficial in that it promotes the company's interest, the interest of the manager, and the interests of the agents.

Learn more about Marketing life insurance here:

brainly.com/question/15025479

#SPJ11

Use the market's HHI and the FTC's historical guidelines for mergers to answer the following question:
Suppose the top five firms in a market have market shares of 26%,11%,9%, 8% and 6% respectively. The remaining 20 firms in the market each have a market share of 2%.
Would the FTC be likely to approve a merger between the top two firms in this market?

Answers

Yes, the FTC would be likely to approve a merger between the top two firms in this market.

The Federal Trade Commission (FTC) is an independent agency of the United States government whose primary purpose is to enforce civil (non-criminal) antitrust laws and promote consumer protection. The FTC shares civil enforcement responsibilities for federal antitrust laws with the Department of Justice's Antitrust Division. 

The agency called the Federal Trade Commission (FTC) aims to protect consumers and promote business competition.

The market's Herfindahl-Hirschman Index (HHI) is 1809, which is below the FTC's historical guideline of 2,500. The top two firms in the market have combined market shares of 37%, which is also below the FTC's historical guideline of 40%.

Therefore, the FTC would be likely to approve a merger between the top two firms in this market.

Learn more about Federal Trade Commission: brainly.com/question/23015428

#SPJ11

which one of these defines an asset transformer? multiple choice question. an economic agent appointed to act on behalf of investors a financial institution which issues secondary securities to investors a corporation that repurchases outstanding shares of stock a financial institution that issues primary equity securities

Answers

A financial institution which issues secondary securities to investors is one which defines an asset transformer.

Financial institutions are businesses that engage with both financial and monetary transactions, such as accounts, loans, purchases, and currency exchange (FI). In the financial services sector, "financial institutions" refers to a broad range of commercial operations, including banks, trust firms, insurance companies, investment companies, and investment dealers. There are many different types, sizes, and locations of financial institutions. Financial institutions are businesses that manage, invest, or deposit money to help individuals and businesses satisfy their financial and monetary demands.

To learn more about financial institution refer:

https://brainly.com/question/30066746

#SPJ1

.the him manager tasked the coding manager to development a dashboard that shows the discharges pending final billing so that she can plan for staffing. because this data changes throughout the day, what analysis technique is needed?

Answers

The analysis technique required in this scenario is Real-Time Analysis. Real-time analytics is a type of business analytics that uses data generated by devices, machines, sensors, and people in real-time or near-real-time to identify patterns, gain insight, and guide business decisions.

To ensure that the manager can plan for staffing based on the changing data of discharges pending final billing, an analysis technique that can track and analyze data in real time analysis is needed. One such technique is streaming analytics, which can process large amounts of data and identify patterns in real-time.

Real-Time Analysis is similar to other types of data analytics, except that it is performed on data as it is created or entered, rather than on data that has been stored and collected over time. Real-time analysis is required in this case because the data changes throughout the day.

Real-Time Analysis can be useful when immediate decision-making is required, as is the case with discharges pending final billing, which necessitates staffing considerations based on real-time data.

Know more about Real-Time Analysis here:

https://brainly.com/question/15245373

#SPJ11

taxes on imports which are levied specifically to raise money are called

Answers

Taxes on imports which are levied specifically to raise money are called customs duties or tariffs.

Tariffs are customs taxes levied on imported goods. Tariffs provide locally produced items a pricing advantage over equivalent imported goods, and also raise income for governments.

These taxes are usually imposed by governments as a means of generating revenue for the country, and they are typically a percentage of the value of the goods being imported.

Customs duties may also be used to protect domestic industries by making imported goods more expensive and less competitive in the local market.

Learn more about Tariffs

https://brainly.com/question/29775921

#SPJ4

Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that _____.
A) people have been too reluctant to leave rural areas to go to the cities
B) food shortages have increased in rural areas because of worker shortages
C) demand for social and political services has increased excessively in the cities
D) developed countries have retaliated with protection of products from the developing countries

Answers

The answer for the question is A) people have been too reluctant to leave rural areas to go to the cities.

Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that people have been too reluctant to leave rural areas to go to the cities. Developing countries are those countries that have a relatively low standard of living, a high population growth rate, a low per capita income, and a low human development index (HDI). Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production.

The following are the policies of developing countries:

Encouraging multinational corporations to establish plants in their countries. Grants or subsidies to domestic businesses to increase industrial production. Restricting imports of manufactured goods to encourage domestic production. The problem faced by developing countries while shifting people out of agriculture and into industry is that people have been too reluctant to leave rural areas to go to the cities. They prefer to stay in their own locality rather than move to urban areas where there are better opportunities. This has resulted in a shortage of labor in the urban areas which, in turn, has led to an increase in wages. This has made manufactured goods more expensive and has reduced the competitiveness of developing countries.

Learn more about population growth here https://brainly.com/question/18415071

#SPJ11

Put the following events in the order they might occur once a city council decides to implement a price ceiling on apartment rent in a crowded, impoverished neighborhood. .- A lower quantity of rental units supplied leads to shortage of housing in an already crowded neighborhood. - Property owners receive less income from their properties. - Apartment rental prices are capped by the local government. Property owners convert some apartments into private residents and offer them for sale in order to make more pro

Answers

The order of events that might occur once a city council decides to implement a price ceiling on apartment rent in a crowded, impoverished neighborhood is:

Apartment rental prices are capped by the local government. Property owners receive less income from their properties.A lower quantity of rental units supplied leads to shortage of housing in an already crowded neighborhood.

Property owners convert some apartments into private residents and offer them for sale in order to make more profit. Price ceilings are a government policy that regulates the maximum price that can be charged for a product or service. The aim of this policy is to keep prices affordable for consumers who would otherwise be unable to pay for it on the market.

If a city council decides to implement a price ceiling on apartment rent in a crowded, impoverished neighborhood, it would have immediate consequences on property owners who would earn less income from their properties as the rent will be lower than what they would have wanted to charge. This would make it less profitable to operate the rental units, hence resulting in a lower quantity of rental units supplied, leading to a shortage of housing in an already crowded neighborhood.

In response, property owners may convert some apartments into private residents and offer them for sale in order to make more profit. This is because the demand for housing will still be high due to the shortage, making it profitable to sell homes to the occupants rather than renting them out for lower rates.

In conclusion, the order of events that would occur in this scenario is such that a price ceiling would be implemented by the local government, which would result in property owners receiving less income from their properties, leading to a lower quantity of rental units supplied and resulting in a shortage of housing. This would lead to property owners converting some apartments into private residents and offering them for sale in order to make more profit.

For similar question on "Price Ceiling" :

https://brainly.com/question/28018539

#SPJ11

what is a bill of lading? it is a form that is filled out when requesting a credit memo it is used by a production department to request stock it is used to prepare product specifications it represents title to the products purchased

Answers

A Bill of Lading is a legal document used to outline the details of goods being transported and to act as a title of ownership for the goods, whereas a Credit Memo is an invoice sent to a customer used to reduce a customer’s total balance or for returns and adjustments.

A Bill of Lading is a legal document that serves as a receipt between a shipper and a carrier for goods that are being transported. It also serves as a contract between the shipper and the carrier and outlines the details of the goods being transported, including the type, quantity, and destination of the goods. In addition, it acts as a title of ownership for the goods, meaning that the person or entity with possession of the bill of lading holds legal title to the goods.

A Credit Memo is an invoice sent to a customer, typically in the form of a debit or credit that is used to document the sale of goods or services. It is used to reduce the customer’s total balance or for returns and adjustments. A Production Department typically uses a Credit Memo to request stock, prepare product specifications, and issue invoices.

Know more about Bill of Lading here:

https://brainly.com/question/28231278

#SPJ11

when using costs or other monetary measures from different years as a statistic in a speech, it is important to consider the of the dollar in terms of inflation.

Answers

When using costs or other monetary measures from different years as a statistic in a speech, it is important to consider the effect of inflation on the value of the dollar.

Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.

As a result, it is critical to consider the effects of inflation when calculating monetary data from different years.

The Value of Money over TimeThe value of money varies over time due to inflation.

As a result, it is critical to adjust monetary statistics for inflation before presenting them in speeches or presentations to ensure that they are meaningful and accurate.

The best way to assess and calculate inflation is to use the Consumer Price Index (CPI). The CPI measures the rate of inflation by tracking the changes in the prices of a basket of goods and services over time.

Learn more about monetary policy here:

https://brainly.com/question/13926715

#SPJ11

How do you calculate working capital investments?

Answers

The working capital investment for ABC Corporation is [tex]$200,000[/tex].

Working capital investments can be calculated using the formula below:

Working capital investments = (Current Assets – Current Liabilities)

Example: ABC Corporation has [tex]$500,000[/tex] worth of current assets and [tex]$300,000[/tex] worth of current liabilities.

What are the working capital investments for ABC Corporation?

Working capital investments = [tex]$500,000 – $300,000 = $200,000[/tex]

Therefore, the working capital investment for ABC Corporation is [tex]$200,000[/tex].

Learn more about accounting here;-

https://brainly.com/question/1033546

#SPJ11

Hwk 7 (Ch. 1): Opens 3/21, Due 3/28 6 8 Consider the data presented in the table: investment Actual aggregate expenditure or output (Y) (billions of S) Consumption (C) Planned investmentspending (6) Net exports (Nx) (billions of S) (billions of S) (billions of S) (billions of S) of s) points 399 476 558 630 618 718 eBook 910 Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above Raferences a. For each level of actual aggregate expenditure, calculate unplanned inventory investment Instructions: Enter the values into the table above?lf the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number c. Suppose that planned investment increases by $20 billion. What is the new equilibrium level of aggregate expenditure in this Instructions: Enter a number rounded to the nearest whole number.

Answers

a. Unplanned inventory investment (Iu) is calculated by subtracting planned investment from total output.

What is investment?

Investment is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. Investment involves the purchase of financial products or other items of value with the expectation that it will generate income or appreciate in value at some point in the future. Examples of investments include stocks, bonds, mutual funds, real estate, commodities, and cryptocurrency.

Investment Actual aggregate expenditure or output (Y) (billions of S) Consumption (C) Planned investmentspending (G) Net exports (Nx) (billions of S) (billions of S) (billions of S) (billions of S) of S) points 399 476 -20 -18 -14 -10 0 eBook 910 Unplanned inventory investment (Iu) (billions of S) 19 38 49 51 53 63
b. The equilibrium level of aggregate expenditure in this economy is 910 billion.
c. If planned investment increases by $20 billion, the new equilibrium level of aggregate expenditure in this economy would be 930 billion.

To learn more about investment
https://brainly.com/question/29547577
#SPJ1

The current interest rate appropriate for discounting a cash flow of some given maturity, in other words the rate that prevails today for a zero-coupon bond of that maturity, is the ______________ rate.

Answers

The current interest rate appropriate for discounting a cash flow of some given maturity, in other words the rate that prevails today for a zero-coupon bond of that maturity, is the spot rate.

In finance, spot rate refers to the rate of return on an investment in a given security, usually a bond or other debt instrument, at a particular point in time. A spot rate, also known as a zero-rate, is a rate of return on an investment in which interest accrues only on the initial investment.

The zero-coupon bond's discount rate is the spot rate for a particular maturity. It is the appropriate interest rate used to calculate the present value of a bond's future cash flows. This is the rate that reflects the time value of money and other relevant factors like the credit risk of the issuer, liquidity, and inflation expectations.

Learn more about spot rate here:

brainly.com/question/4648209

#SPJ11

this exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. each of the five lines represents a separate set of information. you are to fill in the missing amounts. (enter loss amounts as a negative number.)

Answers

The values in the diagram will be:

Net Income = $13200

Expense = 286000

Net Income = 39000

Net Income = -46000

Net purchases = 434000

How to calculate the values

Cost of goods sold = Beginning Inventory + Net purchases - Ending Inventory

= 76000+ 104000 - 35200 = 144,800

Net Income (Loss) = Gross Profit - Expenses = 85200 - 72000 = 13,200

Solution b:

Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods sold

= 75000 +300000- 264000 = 111,000

Gross Profit = Sales - Cost of goods sold = 570000 - 264000 = 306,000

Expenses = Gross Profit - Net Income = 306000 - 20000 = 286,000

Solution c:

Net Purchases = Cost of goods sold + ending Inventory - Beginning Inventory

= 441000 +170000 - 170000 = 441,000

Net Income = 189000 -150000 = 39,000

Solution d:

Cost of goods sold = Sales - gross profit = 790000-234000 = 556,000

Beginning Inventory= Cost of goods sold + Ending Inventory - Purchases = 556000 +135000 - 450000 = 241,000

Net Income (loss) = 234000 - 280000 = -46000 (Loss)

Solution e:

Net Sales = Cost of goods sold + gross profit = 400000 +130000 = 530,000

Net Purchases = Cost of goods sold + ending Inventory - Beginning Inventory = 400000+190000-156000 = 434,000

Learn more about net income on

https://brainly.com/question/15530787

#SPJ1

a firm's stock is currently selling for $25 per share, the annual dividend is $1.00, and expected earnings are $5.00 per share. what is the firm's dividend payout ratio?

Answers

The annual dividend is $1.00, and expected earnings are $5.00 per share. Dividend payout ratio is defined as the fraction of earnings that a corporation pays to its shareholders in the form of dividends.

The formula for calculating the dividend payout ratio is as follows:

Dividend Payout Ratio = (Dividend per share / Earnings per share) x 100

Given that the firm's stock is currently selling for $25 per share, the annual dividend is $1.00, and expected earnings are $5.00 per share.

The dividend payout ratio = (Dividend per share / Earnings per share) x 100

DPR = (1.00/5.00) × 100

DPR = 0.2 × 100

DPR = 20%

Therefore, the firm's dividend payout ratio is 20%. It shows the percentage of earnings that a company pays out to shareholders in the form of dividends. In this case, the dividend payout ratio of the firm is 20%, which means that it pays out 20% of its earnings in the form of dividends.

learn more about divident payout ratio https://brainly.com/question/16952958

#SPJ11

consider the capm. the risk-free rate is 2%, and the expected return on the market is 12%. what is the beta on a stock with an expected return of 14%? a. 1.7 b. 1.5 c. 0.9 d. 1.2

Answers

The beta on a stock with an expected return of 14% is 1.2. The Capital Asset Pricing Model (CAPM) equation is used to calculate the expected return on an asset. The correct answer is option d)1.2.

The CAPM equation is as follows: r(i) = rf + beta(i)(rm - rf)where r(i) is the expected return on the asset, rf is the risk-free rate, rm is the expected return on the market, and beta(i) is the asset's beta. The given information is as follows: Risk-free rate = 2%, Expected return on the market = 12%, Expected return on the stock = 14%

Now, we have to calculate the stock's beta. The CAPM equation can be modified to calculate beta as follows: beta(i) = (r(i) - rf) / (rm - rf). We can substitute the given information into this equation as follows: beta(i) = (0.14 - 0.02) / (0.12 - 0.02) beta(i) = 1.2. Hence, option d) is the right answer.

Know more about Capital Asset Pricing Model (CAPM) here:

https://brainly.com/question/28590164

#SPJ11

observation of inventories is a required audit procedure under all circumstances. group startstrue or false

Answers

The statement "observation of inventories is a required audit procedure under all circumstances" is FALSE. Auditors must assess the need for inventory observation based on the circumstances of the audit engagement.

Observation of inventories means counting and inspecting the physical quantity of inventory items to verify their accuracy with the inventory records. This is done to ensure that the inventory records accurately reflect the actual inventory on hand.

Companies monitor their inventories by performing physical inventory counts at regular intervals. The physical inventory count is the process of counting all of the inventory on hand and reconciling it to the inventory records to ensure that there are no discrepancies.

A physical inventory count begins by emptying out the entire inventory and organizing it into similar groups to simplify the counting process. The inventory is then counted manually, with counts typically recorded on a physical inventory count sheet or with an electronic device that automatically logs the count. After the counting is complete, the physical inventory count is compared to the inventory records to identify any discrepancies that require investigation to resolve.

Learn more about inventories observation at https://brainly.com/question/15118949

#SPJ11

1. In rare situations, a court may impose an __________ or __________ contract when necessary to prevent unjust enrichment.a. implied-in-fact; quasi-b. implied-in-law; bilateralc. implied-in-fact; unilateraldd. implied-in-law; quasi-

Answers

In rare situations, a court may impose an implied-in-law or quasi contract when necessary to prevent unjust enrichment. So, option D is correct.

Implied-in-law contracts are obligations that a court creates to prevent one party from being unjustly enriched at the expense of another. It's also known as a quasi-contract or constructive contract. When two parties have a contract dispute, a judge may sometimes impose an implied-in-law contract. Because it is created by the court rather than agreed to by the parties, it is a fictitious contract.

A quasi-contract is a legal concept in which an agreement is created by the courts to force a legal obligation onto a party who would not otherwise be bound by one. A quasi-contract is created by law to avoid one party being unjustly enriched at the expense of another. When a contract is not formed, the court will use quasi-contract as a remedy.

A court may impose an implied-in-law or quasi contract when necessary to prevent unjust enrichment, particularly if the parties' relationship suggests that an enforceable contract was anticipated. An implied-in-law contract is created by law to avoid one party being unjustly enriched at the expense of another.

A court may impose an implied-in-law or quasi contract when necessary to prevent unjust enrichment. Therefore, option D is correct.

Learn more about "Quasi contract"; https://brainly.com/question/27993061

#SPJ11

Other Questions
How many oxygen atoms are I one molecule of serotonin uestion 8: Electron Two-Slit Interference Proctor A beam of electrons with velocity 15.0 m/s pass through two slits separated by 0.500 mm. We place a detector on a distant screen. At which angle measured from the horizontal can we be sure we never detect an electron. (a) The electron could be detected anywhere. O (b) 0.00 rad O (C) 0.0485 rad O (d) 0.195 rad (e) 0.0971 rad Save 5 points available for this attempt In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance.The following three defense stocks are to be combined into a stock index in January 2013 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance):PriceShares(millions)1/1/131/1/141/1/15Douglas McDonnell180$60$64$77Dynamics General325686478International Rockwell3709786100a.Compute the rate of return on an equally weighted index of the three defense stocks for the year ending December 31, 2013. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)Index return%b.If the index value is set to 100 on January 1, 2013, what will the index value be on January 1, 2014? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Index valuec.What is the rate of return on the index for 2014? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)Index return% A practitioner has examined a client's compliance with debt covenants associated with a bank loan and is ready to issue a report. Which of the following standards apply to the report?Compliance attestation standards which two outcomes reflected domestic impact of the Smoot-hawley tariff what do you need to provide as part of a nail tip service to ensure that the tips do not break? Carla tutors other students because she likes to be helpful where is Jane tutors classmates strictly for pay their behaviors demonstrate the difference betweenA. Primary and secondary drivesB. Instinctive and derived drivesC. Appetitive and aversive motivationD. Intrinsic an extrinsic motivationE.positive and negative reinforcement Which of the following statements is false?08802802802 maintenance of posture and production of heat are functions of ______ muscle.a) Skeletal muscle b) Smooth muscle c) Cardiac muscle d) Adipose tissu based on the information in the excerpt, how are the perceptions of the two groups in conflict in south sudan impacting the region? fit for life foods reports the following income statement accounts for the year ended december 31 gain on sale of equipment 6320depreciation expense office copier 480office supplies expense760sales discounts15 700insurance expense1 370sales returns and allowances3 900sales217 000tv advertising expense2 200office salaries expense31 300interest revenue600rent expense selling space10 300cost of goods sold89 000sales salaries expense23 100sales commission expense13 000prepare a multiple step income statement 1) A white dwarf isA) a precursor to a black hole.B) an early stage of a neutron star.C) what most stars become when they die.D) a brown dwarf that has exhausted its fuel for nuclear fusion. The relative housing cost for a US city is defined to be the ratio nationalaveragehousingcostaveragehousingcostforthecity, expressed as a percent.The scatterplot above shows the relative housing cost and the population density for several large US cities in the year 2005. The line of best fit is also shown and has equation y=0.0125x+61. Which of the following best explains how the number 61 in the equation relates to the scatterplot? The situation of the excerpt could best be used by a historian to support which of the following explanations of changes in society during the Gilded Age?A) New scientific theories of race emerged to justify segregation.B) Businesses and government generally limited workers' rights.C) Nativists were effective in enacting limitations on immigration.D) Westward mobility improved through the construction of rail networks. A company has two different kinds of employees: professional and nonprofessional. Generally, professional employees have a monthly salary, whereas nonprofessional employees are paid an hourly rate. Similarly, professional employees have a certain number of days of vacation, whereas nonprofessional employees receive vacation hours based on the number of hours they have worked. The amount contributed for health insurance is also different for each kind of employee. Use an abstract class Employee to store information common to all employees and to declare methods for calculating weekly salary and computing health care contributions and vacation days earned that week. Define subclasses Professional and Nonprofessional. Test your class hierarchy. How were Japanese Americans impacted by wartime policies during World War II? On January 15th, Linus transfers property to a trust over which he retains a right to revoke one-fourth of the trust. The trust is to pay Patti 5% of the trust assets valued annually for her life with the remainder to be paid to a qualified charity. On September 1st, Linus dies and the trust becomes irrevocable. Which of the following statements is/are correct? 1. The trust is created January 15th. 2. The trust is created when it becomes irrevocable at September 1st. 3. Linus receives a charitable deduction equal to the present value of 25% of the remainder interest. 4. Linus receives a charitable deduction equal to the present value of 75% of the remainder interest 3 and 4 3 only O1 only. 1 and 2 Cattails in swamps are used to absorb chemical pollutants. what method of reducing pollutant concentration is this Which of the following events was the most significant change to the balance of powers depicted on the map?The Napoleonic WarsThe Congress of ViennaGerman and Italian unificationThe Russian Revolution How does Long John act when he first enters the stockade in chapters 19-21 of Treasure Island?A. He threatens all of Captain Smollett's men.B. He introduces himself, as if it was the first time he had ever met Captain Smollett's men.C. Talks kindly to all of Captain Smollett's men, as if saying hello to old friends.D. He refuses to speak to anyone other than Captain Smollett.