assume an economy with a coal producer, a steel producer, and some consumers (there is no government). in a given year, the coal producer produces 15 million tons of coal and sells it for $5 per ton. the coal producer pays $50 million in wages to consumers. the steel producer uses 25 million tons of coal as an inp

Answers

Answer 1

The product approach: Coal producer produces 15 million tons of coal at

$5/ton, GDP of a coal is-15*5-75.

The steel producer produces 10 million$20/ton. worth of $200millions

The steel producer pays $125 million. For coal he is paying 25million $5/ton the value added is $75million.

GDP-$75 million(Coal)+$75 million(Steel)

Expenditure approach: Consumers buy 8 million tons of steel at $20/ton, here the over all consumption is $160 million. There is no investment by the govt.

Exports-2million tons of steel at $20/ton = $40miltoon

Imports-10 million tons of coal at $5/ton-$50 million

Net exports =$40 million-$50 million-$10 million.

GDP is =$160 million-$10 million-$150 million.

Income approach:

The coal producer pays $50 million wages.

steel producer pays $40 million in wages, total wages -$90 million.

The coal producer receives $75 million in revenue for selling 15 Million tons $5/ton for this he paid $50 million wages only Totaling $25 million profit's

The steel producer receives $200 million revenue by selling steel 10million tons of steel for $20/ton.

The steel producer pays -40 million wages +$125 millions (coal producing) over all expenditure

Is=165

Steel producer profits-200-165-535 million

Over all Profits in the economy is =25+35-$60 Millions

GDP-90(Wage income)+(Profits)60 -$150 million

GNP is equal to GDP, which is equal to $150 million. The foreigners receive $25 million in coal Industry profits as income. The net factor payments from abroad are $25 million, so GNP is

equal to $125 million.

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Related Questions

On june 8, williams company issued an $80,000, 5%, 120-day note payable to brown industries. Assuming a 360-day year, what is the maturity value of the note?.

Answers

Assuming a year of 360 days, the maturity value of the note is $81,333.

The term notes payable can be found in the accounts receivable accounting cycle. For example, when we buy gadgets, furniture, or vehicles on credit. Usually we sign official documents, so from the buyer's point of view, these documents are notes payable. Meanwhile, for creditors, the document is a note receivable.

Notes payables are also usually issued when a customer gets a loan from a bank. Although they have varying terms, many banks will accept notes payable which bear interest on the amount borrowed.

From the above understanding there are several things that can characterize notes payable, including:

Seen from the borrower's point of viewIncrease on the credit sideIncluding passive

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Why do LLC members deserve limited liability?

Answers

Answer:

to protect their personal assets from the assets of the business

Explanation:

because limited liability is about reducing your personal exposure to financial risk.

Question: Hello: ) Why do LLC members deserve limited liability?

Answer:

Because an LLC is a separate entity, the owners of the company have limited liability. This is one of the most important benefits to operating as a limited liability company. Limited liability means that the individual assets of LLC members cannot be used to satisfy the LLC's debts and obligations.  LLC members receive the same personal liability protection as shareholders of a corporation without having to incorporate. This is an attractive feature because you save the time and expense of going through the incorporation process.

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there are two ways the first law of demand can be stated: all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. all other factors being equal, the more costly it is to engage in a particular behavior the less of that behavior an individual will engage in. consider the second formulation of the first law of demand and read this article. the article describes the drop in fertility (the number of babies a women will have over her expected lifetime) that has occurred as incomes have risen in countries around the world. --------------------------------------

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The law of demand states that the level of demand for a product or resource decreases as the price rises and increases as the price falls. Conversely, according to the law of supply, the supply of an economic good tends to increase as the price increases and decrease as the price decreases.

The law of demand states that the price and quantity required for all goods and services are inversely proportional to each other, all else being equal . When the price of one good increases, the demand for the same good decreases. Similarly, when the price of a good or service decreases, the demand for that good or service increases. It contains only two variables: price and quantity. That's what the law of demand is all about. It indicates how a change in the price of a good or service affects the quantity demanded. According to the law of demand, when the price of a good increases, the quantity demanded for that good decreases, and when the price of a good decreases, the quantity demanded for that good increases. Demand for a product increases or decreases depending on several factors. This includes changes in product prices, perceived quality, advertising spending, consumer income, consumer confidence, tastes and fashion. Historically, high infant mortality, including infant and infancy deaths from disease, has resulted in low population growth and high fertility rates. As child mortality has declined (and in some countries sharply), so has the birth rate.

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Sure+tea+co.+has+issued+4.5%+annual+coupon+bonds+that+are+now+selling+at+a+yield+to+maturity+of+5.50%+and+current+yield+of+5.00%.+what+is+the+remaining+maturity+of+these+bonds?

Answers

A coupon bond is a specific kind of bond that has attached coupons and makes periodic interest payments (usually annually or semi-annually) during its life as well as its par value upon maturity.

Coupon will equal to 45

As

YTM=5.50 PV = 45/0.05=900=NPER(0.055,45,-900,1000)=14.91 years or 15 years

Simply multiply the bond's face value by its yearly coupon rate to determine the annual coupon payment for the bond.

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Reggie needs to buy a snowblower, but he has a gravel driveway and is concerned that the machine will pick up stones, causing a malfunction. This is what type of risk?.

Answers

it is a cost risk because if he breaks his snowblower it will cost him

Dante went to school to learn about HVAC systems. He earned a degree that certifies he knows how to correctly and safely install large air conditioning units. What company in the Architecture and Construction career cluster might be interested in hiring Dante?

A) a large construction company building a new hospital

B) a wood floor contractor in need of an apprentice

C) a small county surveyor’s office looking for an intern

D) a forklift rental company in need of a representative

Answers

The company in the Architecture and Construction career cluster that might be interested in hiring Dante is A) a large construction company building a new hospital

What is a Career?

This refers to the specialized job which a person is engaged in that allows him to earn a living,

Hence, we can see that The company in the Architecture and Construction career cluster that might be interested in hiring Dante is A) a large construction company building a new hospital

This is because he is certified in HVAC systems and the hospital would need several air-conditioning units.

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Answer: A

Explanation:

Although 80% to 95% of americans cherish their privacy as a very important right and principle, what percentage also act in ways that allow others to easily monitor and track their activities?.

Answers

Although 80% to 95% of Americans cherish their right to privacy as a very important right and principle, 45% also act in ways that allow others to easily monitor and track their activities.

A fundamental legal principle, the right to privacy encompasses the following: The freedom from unwelcome publicity. theft of one's individuality without authorization, and leaking information about one's personal life if it isn't necessary. The right to privacy is a component of many legal systems that aims to prevent governmental and private activities that endanger people's privacy. The right to privacy is included in the constitutions of more than 150 countries. Despite the American Constitution's omission of the right to privacy, the Supreme Court has ruled that several of the amendments really establish this right.

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What do you think are some of the reasons that employers want candidates who have both the specific training in a field but also the breadth of a general education?.

Answers

Employers think that a liberal education or general education more than a specific job provides information and skills that are crucial for career success.

Employers typically regard a college degree and are confident in higher education. Additionally, companies claim that college graduates are better at articulating their value proposition.

Employers assert that personal abilities and mindsets also have an impact on career performance. Long-term performance depends on both the breadth and depth of learning. Candidates for jobs have a distinct advantage in the recruiting process if they complete active and practical learning activities while in college.

Employers value both breadth and depth of learning, which is evident in their desire for employees to develop independent thought, flexibility and adaptability, technical proficiency, and a broad range of skills.

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If an operations manager wishes to help workers understand the movement of​ material, information, or people throughout a​ process, what tool should he or she​ use?.

Answers

An operations manager should use communication to aid employees in comprehending the flow of information, people, or materials during a process.

More about operations manager:

In order to regulate production and commercial operations as efficiently as possible, operations management is concerned. To optimise net operating profit, OM experts strive to strike a balance between operating costs and revenue.

Whether or not it is referred to as "operations," every organisation has an operations function. The majority of organisations have the production of goods and/or services as their objective or purpose. To accomplish this, they must obtain resources, transform them into outputs, and then disseminate them to the target audience.

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You have data showing demand for plumbing services rising for each of the last five years. This would best be displayed on a:

Answers

Answer:

line graphs

Explanation:

line graphs aid in making PREDICTIONS about the outcomes of data that has not yet been recorded

even if data isn't perfect, a line graph can show a general pattern

Line graphs are used to track changes across time, both short and long.

When there are fewer changes, line graphs are preferable over bar graphs.

Line graphs can also be used to compare changes for multiple groups over the same time period.

Line graphs are valuable because they clearly display data variables and patterns

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If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because.

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If the rate of metal will increase substantially, the quantity of steel demanded by using the constructing enterprise will fall extensively over the long term because shoppers of steel are extra sensitive to a charge change in the event that they have greater time to adjust to the price trade.

Quantity judgment of the way top-notch something or someone is. An instance of quality is a product that may not wreck easily. An example of high quality is a nicely-made product. The definition of pleasure is a different characteristic or trait.

Quantity, just like a number, can be used for singular or plural nouns that you can depend on or degree. the main distinction is that it's quality to apply quantity whilst you speak to me about an inanimate object. however, there are times wherein you may use amount and variety interchangeably, especially while the noun is plural. In physics, there are seven fundamental bodily portions that are measured in base or physical fundamental units: period, mass, time, electric current temperature, the quantity of substance, and luminous depth.

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Which note-taking method is most appropriate for taking notes while reading?
a. Cornell format
b. outline format
c. list format
d. paragraph format

Answers

Answer: I think it's a. Cornell format because it is a combination of writing a list, any methods learnt, and has a notes column.

Something like this

Explanation:

rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. he particularly likes his local bank because he is being offered a nominal rate of 8%. but the bank is compounding bimonthly (every two months). what is the effective interest rate that rahul would pay for the loan?

Answers

Effective interest rate Rahul pays on the loan: $14,426.43

Effective interest rate = (1 + (Nominal interest rate / Frequency of compounding)) Number of periods - 1

Effective interest rate = (1 + (8% / 6)) ) 6 - 1 = 0.08271 or 8.271%

Amount Due = Amount Borrowed * (1 + (Daily Interest)) Days

Daily Interest = Annual Interest / 365 = 9% / 365 = 0.02466%

Days in 4 Months = (4 / 12) * 365 = 121.67

Amount owed = $14,000 * (1 + 0.02466%) 121.67 = $14,426.43

A loan is a type of debt owed by an individual or other legal entity. A lender (usually a corporation, financial institution, or government) makes an advance payment to a borrower. In return, the borrower agrees to certain terms, including financing costs, interest, repayment dates, and other terms.

A loan is defined as an agreement to lend money with interest and its repayment plan. An example of a loan is a contract that provides money to buy a house.

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an economic principle, i.e. a confirmed positive statement, is the first law of demand which states: all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. a variant of the first law of demand states: all other factors being equal, the more costly it is to engage in a particular behavior the less of that behavior an individual will engage in.

Answers

an economic principle, i.e. a confirmed positive statement, is the first law of demand which states: all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. a variant of the first law of demand states: all other factors being equal, the more costly it is to engage in a particular behavior the less of that behavior an individual will engage in .

The First Law of Demand is a confirmed positive statement as the Law.

Given a finite supply, the law of demand states that if more people desire to buy something, the price will increase. Likewise, buyers will buy fewer goods, the more expensive they are, on average. According to the rule of demand, which is a cornerstone of economics, customers will demand fewer units of a good at a higher price. The law of diminishing marginal utility, which states that consumers use economic commodities to initially meet their most pressing wants, is what drives demand.

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Globalization allows individuals receive information directly from governments, political advocacy organizations, businesses, and individuals, base by removing intermediaries from our ____________?.

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Globalization allows individuals receive information directly from governments, political advocacy organizations, businesses, and individuals, base by removing intermediaries from our independant place.

Globalization is a term used to describe how alternate and technology have made the sector into a greater linked and interdependent location. Globalization also captures in its scope the economic and social changes that have come approximately as a end result.

As nations have become extra interconnected, they have got had to work collectively more. For instance, nations work together to guard the surroundings or to combat terrorism. This has brought about the development of worldwide authorities. After WWII, the United international locations (UN) was formed as a sort of international authority.

Political globalization: the improvement and growing effect of worldwide groups including the UN or WHO manner governmental movement takes vicinity at a worldwide stage.

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If all direct materials are added at the end of the production​ process, and the units have made it​ 50% of the way through the production​ process, then the percentage completion for direct materials is.

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The percentage completion for direct materials is 100% if all direct materials are added at the conclusion of the manufacturing process and the units have completed 50% of the production process.

The manufacturing process is converting unfinished things from raw materials or pieces using tools, labor, machinery, and chemical processing. Before the Industrial Revolution, the majority of goods were created by hand using human labor and simple instruments.

Direct material refers to the tangible components that make up a product. For instance, flour, eggs, yeast, sugar, oil, and water are direct materials for a baker. Cost accounting uses the concept of direct material to categorize this cost independently for various forms of financial analysis.

The complete question of this answer is given below:

If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

A. 0%

B. 100%

C. 50%

D. none of the above.

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how did Suzy Batiz failures set her up for success?

Answers

Answer:

I'm not sure

Explanation:

Not enough explanation.

Not enough information

On january 1, 2021, the general ledger of dynamite fireworks includes the following account balances: accounts debit credit cash $ 24,400 accounts receivable 5,800 supplies 3,700 land 56,000 accounts payable $ 3,800 common stock 71,000 retained earnings 15,100 totals $ 89,900 $ 89,900 during january 2021, the following transactions occur: january 2 purchase rental space for one year in advance, $7,800 ($650/month). january 9 purchase additional supplies on account, $4,100. january 13 provide services to customers on account, $26,100. january 17 receive cash in advance from customers for services to be provided in the future, $4,300. january 20 pay cash for salaries, $12,100. january 22 receive cash on accounts receivable, $24,700. january 29 pay cash on accounts payable, $4,600. exercise 3-21a part 3 3. prepare an adjusted trial balance as of january 31, 2021.

Answers

A general ledger (GL) is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing a specific type of asset, liability, equity, revenue, or expense.

Date GENERAL JOURNAL Debit Credit

January 31 Rent Expenses $650  

 Prepaid Rent   $650

 (To record rent expenses)    

     

January 31 Supplies Expenses $4,400  

 Supplies   $4,400

 (To record supplies expenses) ($3,700 + $4,100 - $3,400)    

     

January 31 Deferred Revenue $3,650  

 Service Revenue   $3,650

 (To record rendered of service)    

     

January 31 Salaries Expenses $5,380  

 Salaries payable   $5,380

 (To record salaries expenses)

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The absorption cost approach provides for the absorption of all manufacturing costs, fixed and variable, into units of product. True or false?.

Answers

The absorption cost approach provides for the absorption of all manufacturing costs, fixed and variable, into units of product is a true statement.

What is absorption cost approach?

Absorption costing or absorption cost approach is often called as “full costing.

It  is a  method of managerial accounting for capturing all costs which are associated with manufacturing of a particular product.

The "direct" and "indirect" costs, such as insurance,direct labor,direct materials, rent etc are accounted for using this method.

Absorption costing is required by GAAP or Generally Accepted Accounting Principles  for external reporting.

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An analyst should be careful when conducting ratio analysis to ensure that ________.

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An analyst should be careful when conducting ratio analysis to ensure that the overall performance of a firm is not judged by a single ratio.

Ratio analysis

Ratio analysis is a mathematical approach of getting insight into a company's liquidity, operational efficiency, and profitability through the examination of its financial statements, such as the balance sheet and income statement. Fundamental equity research is built on ratio analysis. Current ratio, gross profit margin ratio, and inventory turnover ratio are examples of ratio analysis.

Comparison of the estimated ratios to previous ratios of the same company concern.

Therefore,  the overall performance of a firm is not judged by a single ratio is the correct answer.

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an owner can lease her building for $100,000 per year for three years. the explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. all revenues are received, and costs borne, at the end of each year. if the interest rate is 7 percent, determine the present value of the stream of:

Answers

The Account Profit formula:

Accounting Profit = Total Revenue - Explicit Cost

Accounting Profit = $100,000-$35,000

Accounting Profit = 65,000

After you find your Accounting Profit you need to use the Present Value of a Stream Formula which is:

PV = FV1/(1+i)^1 + FV2/(1+i)^2 + FV3/(1+i)^3

After plug in what you know..

PV = 65000/(1+4%)^1 + 65,000/(1+4%)^2 + 65,000/(1+4%)^3

PV = 217,859.84

So the owners Accounting Profit is 217,859.84

Economic Profit:

For Economic Profit you need to start with the Economic Profit formula:

Economic Profit = Total Revenue - (Explicit Cost+ Implicit Costs)

Economic Profit = $100,000 - (40,000+55,000)

Economic Profit = 5,000

After you have found the Economic Profit you need to use the Present Value of a Stream Formula, which is:

PV = FV1/(1+i)^1 + FV2/(1+i)^2 + FV3/(1+i)^3

After plug in what you know...

PV = 25,000/(1+7%)^1 + 25,000/(1+7%)^2 + 25,000/(1+7%)^3

PV = 26750+28622.5+30626

So the owners Economic Profit is 85999

What is economic benefit?

An economic benefit or loss is the distinction between the income received from the deal of an output and the costs of all inputs utilized, as well as any opportunity costs. In calculating economic benefit, opportunity costs and express costs are deducted from revenues earned. Economic profit can be calculated as income short express costs short opportunity taken a toll. Express costs are all costs ordinarily accounted for, such as labour costs, materials costs, promoting, devaluation, and charges.

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Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that a) people without health insurance will be less likely to have follow healthy habits than people with health insurance. b) people without health insurance will be more likely to follow healthy habits than people with health insurance. c) people without health insurance will be equally likely to follow healthy habits as people with health insurance. d) there is no correlation between not having health insurance and follow healthy habits.

Answers

Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that:

a) people without health insurance will be less likely to have follow healthy habits than people with health insurance.

b) people without health insurance will be more likely to follow healthy habits than people with health insurance.

c) people without health insurance will be equally likely to follow healthy habits as people with health insurance.

d) there is no correlation between not having health insurance and follow healthy habits.

The correct option is Option A.

What is health insurance?

Health insurance is a type of insurance that covers all your medical expenses that arise due to an illness.

What are the different types of Health Insurance?

1. Mediclaim Plans

The Mediclaim or hospitalization plans are the most basic type of health insurance plans. They cover the cost of treatment when you are admitted to the hospital. The payment is made on actual expenses incurred in the hospital by submitting original bills.

2. Critical Illness Insurance Plans

Critical Illness Insurance Plans cover specific life-threatening diseases. Unlike hospitalization plans, the payout is made on Critical Illness cover chosen by the customer and not on actual expenses incurred in the hospital.

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Suppose a u. S. Treasury bond will pay $4,475 five years from now. If the going interest rate on 5-year treasury bonds is 4. 25%, how much is the bond worth today?.

Answers

The calculated worth of the given U.S. Treasury bond today is  mathematically given as

Present worth =$3634.23

This is further explained below.

How much is the bond worth today?

Generally, the equation for the bond  is mathematically given as

The present worth of the U.S. Treasury bond is given by:

Future value /(1+interest rate })^ \{number of years}

[tex]=\frac{\$ 4,475 }{(1+4.25)^5}\\\\=\frac{\$ 2,500}{(1.0425)^5}[/tex]

Present worth =$3634.23

In conclusion, the present worth  of  the bond is

Present worth =$3634.23

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mike and amy are married and have one child, age 15. amy is a "nonworking" spouse who devotes all of her time to household activities. estimate how much life insurance mike and amy should carry to cover amy.

Answers

Answer: the standard amount of life insurance for both Mike and Amy!

Explanation: if both Amy and Mike have a standard plan for those of 18 years of age to 24, that's a $500k policy for less than $19/month! I hope this helps! Good luck!

They should have the standard life insurance

The journal entry to record bad debt expense is made during the year in which it is determined that a particular receivable is uncollectible, regardless of the year of sale. True or false?.

Answers

The journal entry to record bad debt expense is made during the year in which it is determined that a particular receivable is uncollectible, regardless of the year of sale : FALSE Bad debt expense is recorded during the year of the sale, not during the year the receivable is determined to be uncollectible.

A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.

A journal entry is a record of the business transactions in the accounting books of a business. A properly documented journal entry consists of the exact date, the amount to be debited and credited, a description of the transaction, and a unique reference number. An example of a journal entry is the purchase of a machine in a country where a machine account is debited and a money account is credited.

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Linguists estimate that the percentage of cognates between asl and fsl is as great as? a. 36 percent b. 58 percent c. 90 percent d. 22 percent

Answers

Linguists estimate that the percentage of cognates between asl and fsl is as great as 58 percent.

The main sign language used by Deaf people in the United States of America and most of Anglophone Canada is American Sign Language (ASL), a natural language. ASL is a comprehensive and well-structured visual language that uses both manual and non-manual features to communicate.

Dialects of ASL and creoles based on ASL are spoken throughout the world, including much of West Africa and portions of Southeast Asia, besides North America. As a lingua franca, ASL is also widely studied as a second language.

French Sign Language is most closely similar to ASL (LSF). Although ASL exhibits characteristics untypical of creole languages, like agglutinative morphology, it has been argued that ASL is a creole language of the LSF.

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The uncertainty of investment returns associated with how a firm finances its investments is known as:______.
a. liquidity risk.
b. business risk.
c. financial risk.
d. exchange rate risk.

Answers

Answer:

Financial Risk

Explanation:

at the beginning of the year (january 1), wild horses drilling has $11,000 of common stock outstanding and retained earnings of $7,900. during the year, wild horses reports net income of $8,200 and pays dividends of $2,900. in addition, wild horses issues additional common stock for $7,700.

Answers

Shares Outstanding refers to the number of shares of common stock issued by a company to investors and company executives.

Solution:

                                             Common stock                Retained earnings  Beginning balance               $11,000                                     $7,900

Issue of common stock          $7,700  

Add: Net income                                                                     $8,200

Less: Dividends                                                                      ($2,900)

Ending balance                         $18,700                               $13,200

 

           Total stockholders equity

                      $18,900

                      $7,700

                      $8,200

                      ($2,900)

                      $31,900.        

Common stock and retained earnings appear both on the equity section of the balance sheet and on a separate statement of equity. Share capital is the amount invested in the company by all ordinary shareholders. The main one is the value of the common stock itself, but it also includes retained earnings and additional paid-in capital. Take the total shares held by a shareholder and subtract the number of common share positions. The difference is retained earnings.

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Which type of content is most likely to be used for event activation, contest activation or live event activation?

Answers

The most likely uses of hero content are for live events, contests, and event activation. So, the correct answer is option D. Hero content.

The goal of hero content is to expose as many people as possible to the brand and its major brand activity by making a big splash and appealing to a broad audience. Because big ideas take time and money to develop, it can be costly and time-consuming to produce, which explains why it doesn't happen often. Major commercials, contests, immersive activities, and viral content are examples of common types of hero content.

Volvo provided one of the most well-known instances in 2013. In an eye-catching commercial titled The Epic Split, the car business capitalized on the ironic and nostalgic affection for Jean-Claude Van Damme by having the actor perform the splits between two Volvo trucks.

The question is Incomplete, Complete question is:

Which type of content is most likely to be used for live event activation, event activation, or contest activation?

a. Hygiene content.

b. Hub content.

c. Evergreen content.

d. Hero content.

e. None of these.

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An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. what is the accumulated value of the investment at the end of 9 years? a. $11,964.17 b. $11,867.66 c. $9,338.56 d. $8,554.94 please select the best answer from the choices provided a b c d

Answers

The accumulated value of the investment at the end of 9 years is $11,964.17.

What investment means?

An investment is an asset or item purchased with the intention of earning revenue or increasing in value. An increase in the value of an asset over time is referred to as appreciation. When a person buys a good as an investment, the intention is not to consume the good but rather to use it to build wealth in the future.

An investment is any asset bought for a low cost with the expectation that it will provide value in the future that exceeds its initial cost and time to value. This is due to an increase in the asset's value. This could be due to: a shift in market conditions.

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