a situation in which firms expect one thing to happen, but then something else happens is commonly referred to in economics as a

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Answer 1

Answer:

shock

Explanation:

Answer 2

A situation in which firms expect one thing to happen, but then something else happens is commonly referred to in economics as a shock.

What is an economic shock?

An economic shock refers to any change to fundamental macroeconomic variables or relationships that has a substantial effect on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation. Shocks are often unpredictable and are usually the result of events thought to be beyond the scope of normal economic transactions.

Economic shocks have widespread and lasting effects on the economy, and, according to real business cycle theory (RBC), is thought to be the root cause of recessions and economic cycles.

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marie, a salesperson, uses a variety of statements and questions while trying to sell products to prospective buyers. she designs the statements and questions in such a way that they elicit favorable answers from the prospective buyers until a desired result is obtained. in this scenario, marie most likely uses . a. stimulus response selling b. consultative selling c. problem-solving selling d. need satisfaction selling e. adaptive selling

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The correct option is A.  In this scenario, Marie maximum probably uses stimulus response selling.

The stimulus–response model is a characterization of a statistical unit (inclusive of a neuron). The model permits the prediction of a quantitative response to a quantitative stimulus, for instance, one administered by using a researcher. In psychology, the stimulus reaction principle issues kinds of classical conditioning wherein a stimulus turns into paired reaction in a topic's mind.

An alternate within the environment is the stimulus; the reaction of the organism to it is the response. Stimulus is accrued by way of sensory organs within the frame of an organism like eyes, ears, tongue, skin, and nose. response is given by way of effector organs like muscle tissues, hands, legs, and so on as a reaction to the stimuli. A stimulus refers to a detectable change inside the inner or outside surroundings while a reaction refers to any conduct of a residing organism that results from an outside or internal stimulus.

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Using the Loan Calculator and the 1.9% APR offer, how much will Molly’s monthly payment be?

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Molly's monthly payment will be $536.32.

The Loan Calculator multiplies the loan amount ($30,000 in this case) by the APR (1.9% divided by 12). (months). $30,001 x (1.9%/12) = $536.32 would be the computation. Molly's monthly payment will be $536.32 as a result.

A helpful tool for anyone wishing to borrow money is the loan calculator. They can use it to figure out how much interest they will pay overall and how much they will have to pay each month in payments.

The optimal loan option for them can be found by comparing several loan offers using the Loan Calculator. Molly can choose the best loan offer for her needs and calculate her monthly payments using the Loan Calculator.

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a brother and a sister held record title to a home as joint tenants with right of survivorship. the brother moved out of the home shortly after conveying his interest in the home to his friend by quitclaim deed. the friend did not record his deed. several years later, the sister died, leaving her adopted daughter as her sole heir. shortly after the sister died, the brother asked his friend to return his deed and give up his interest in the home. the friend agreed and returned the deed, which the brother destroyed. who has title to the home?

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The friend and the daughter as co-tenants has the title to the home.

An inter vivos conveyance by one joint tenant of his undivided interest destroys the JT so that the transferee takes the interest as a tenant in common and not as JT.

Here, when the brother convey-ed his interest to the friend, JT b/t bro and sister was sever-ed. At that point, the fri-end and the sister held title to the home as TIC. The adopt-ed daughter then inherit-ed the sister's interest upon the sister's dea-th. Because deli-very of a deed cannot be cancel-ed, the friend's return and subsequent destruct-ion of his deed has no eff-ect.

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on may 31 of the current year, the assets and liabilities of baker, inc. are as follows: cash $20,500; accounts receivable, $7,250; supplies, $650; equipment, $12,000; accounts payable, $9,300. what is the amount of stockholders' equity as of may 31 of the current year? question 5 options: $ 40,400 $ 13,050 $ 31,100. $ 20,500. $ 49,700

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Option 3rd is correct. As of May 31st of this year, the stock is $31,100. Stockholders' equity is a useful means of valuing the funds held in a company.

Assets = Liabilities + Operating capital

Cash + Receivables + Equipment + Equipment = Liabilities + Equity

$20,500 + $7,250 + $650 + $12,000 = $9,300 + stock

$40,400 = $9,300 + Equity; Equity = $31,100

Stockholders' equity, also known as shareholders' or owners' equity, is the remaining assets available to shareholders after all liabilities have been settled. It is calculated from either the company's total assets minus total liabilities or the sum of share capital and retained earnings minus treasury shares. Shareholders' equity may include common stock, paid-up capital, retained earnings and treasury stock.

Conceptually, shareholders' equity is a useful means of valuing the funds held in a company. If this number is negative, it may indicate impending bankruptcy for the company, especially if it has a lot of debt. 

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if you were doing business in the u.s. with someone who was born there, how might you nonverbally convey trustworthiness?

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Make eye contact up front. Copy the stance and mannerisms of the other person. When they converse, they nod and smile.

What function does this nonverbal communication serve in professional interactions?

Learning about nonverbal communication and its possible advantages can help business owners. The value of nonverbal communication in business resides in the potential it offers to communicate with coworkers, rivals, clients, and potential clients in ways other than through the use of words.

In order to demonstrate consistency and reliability, body language, verbal intonation, and eye contact can provide subliminal messages that support what is being spoken.

According to Thunder Tech, another advantage is that nonverbal communication can show confidence, zeal, and professionalism through wardrobe choice, active listening cues, and the capacity to communicate a message.

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Business analytics certifications in high demand include _____.
a. AJAX, C#, and Sharepoint
b. SAP Business Objects, Hadoop, and Ruby on Rails
c. Cisco, LINUX/UNIX, and CISSP
d. .NET, PHP, and Java

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Business analytics certifications in high demand include SAP Business Objects, Hadoop, and Ruby on Rails (Option B).

What is Business analytics?

SAP Business Objects is a popular business intelligence platform used by organizations to analyze data and make informed business decisions. Hadoop is an open-source big data analytics platform, which is in high demand as organizations seek to better understand and process large volumes of data. Ruby on Rails is a popular web development framework that enables businesses to build web applications quickly and effectively.

Therefore, Having certifications in these technologies can help professionals demonstrate their expertise and increase their marketability in the field of business analytics. As the demand for data-driven decision-making continues to grow, the demand for professionals with these skills and certifications is also likely to increase.

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Select the correct answer from each drop-down menu.
What are the five main columns of a journal?
The five main columns of a journal are date, account, (company's name, explanation, vendor's name)
, PR, (customer's names, debit, company's name)
, and credit.

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The five main columns of a journal in accounting are:

Date,Account Title and Description,Posting Reference,Debit,Credit.

What is the structure of journal in accounting?

Journal entries serve as the foundation of an organization's accounting system. All systems, whether paper-based, fully automated, or a hybrid of the two, rely on journal entries.  All transactions for a business are recorded in journal entries.

Journal entries are formatted in a consistent manner. A properly formatted journal entry will include the correct date, general ledger accounts, the amount(s) to be debited and credited, a description of the transaction, and a unique reference number, such as a check number.

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which of the following revenue generating models fall under freeconomics? question 2 options: all of the following: in-app advertising, subscriptions, traditional sales internet of things none of the other options are correct both: internet of things and traditional sales traditional sales

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In-app advertising revenue-generating models fall under freeconomics.

What is In-app advertising?

In-app advertising, as the name implies, is a sales method used by companies to market their goods to customers inside an application.

Because mobile usage is mostly driven by smartphone applications, in-app advertising has grown in importance as a route for publishers to promote their content to consumers and increase downloads. It benefits both the brand and the advertising firm.

The advertisements you view while using a mobile app, such as to play a game or browse social media, are known as in-app advertisements.

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What is the term for a loan in which the payments include interest as well as loan principal?

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The term for a loan in which the payments include interest as well as loan principal is Amortized loan.

An amortized loan is referred as a type of loan that requires the borrower to make scheduled, periodic payments which is applied to both the principal and interest. In amortized loan payment, it first pays off the interest expense of the period and any remaining amount is put towards reducing the principal amount. As the interest portion of the payments for an amortization loan decreases, the principal portion increases.

The example an amortized loan of is- mortgages, car loans, and student loans.

Amortization loans helps in providing small businesses an added advantage of having a clear set of payment amount every time which includes both interest and principal.

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dana is an seo freelancer working with a client who is redesigning their website. the client's designer has come up with a design that uses four custom fonts, but dana voices their concern that this could have a negative impact on the site's performance. how can dana explain this issue to their client, and what solution can they propose?

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By pointing out that each font necessitates a separate file to be downloaded by the browser, which increases the size of the website overall, Dana can explain to the client the problem with having numerous unique fonts.

Dana is a freelance SEO expert that works with clients to raise the visibility and rating of their websites on search engines. Dana is a search engine optimization (SEO) specialist with in-depth knowledge of search engine algorithms, keyword research, on-page optimization, link building, and other crucial SEO components. They make use of this information to assist their clients in boosting organic traffic and enhancing their internet visibility. Dana is a talented problem-solver who can comprehend their clients' demands and collaborate closely with them to accomplish their objectives. Additionally, they have the ability to clearly and concisely explain complicated technological challenges to clients who are not technically savvy, ensuring that everyone is on the same page.

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paul is hired by soprano as a security guard. at the time of hiring, paul signs an agreement that relieves soprano from workers' compensation liability. this agreement is most likely:

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Paul works as a security guard for soprano. Paul signs a document at the time of hire that absolves Soprano of workers' compensation responsibility. This agreement probably violates public policy, making it unenforceable.

Describe liability.

An commitment that an individual or organisation has, notably one that is pecuniary in nature, is known as a liability. In the end, liabilities are compensated by the provision of economic aspects like cash, products, or services.

Debt Liabilities on the right side of the balance sheet encompass debts like as loans, accounts payable, mortgages, deferred revenue, bonds, warranties, and accumulated costs.

Assets and liabilities are similar notions. Assets are items you own or owe money to, whereas liabilities are debts or other commitments. An unwritten agreement between two parties liabilities are frequently met or paid for. In the world of accounting, an obligation is identical to a financial liability, but it is more clearly described by prior business transactions, events, and sales.

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the quantity demanded of a good of service is the amount that: select one: a. a consumer needs to consume during a given time period. b. consumers are willing and able to buy at a given price. c. firms are willing to sell during a given time period at a given price. d. a consumer would like to buy but might not be able to afford.

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The correct answer is option b. The quantity demanded of a good of service is the amount that consumers are willing and able to buy at a given price.

Demand can simply means a consumer's desire to buy certain goods and services without any hesitation and pay the price for it. In other words, demand is referred as the number of goods that the customers are ready and willing to buy at several prices during a given time frame.

The quantity demanded (qD) is ususally a function of five factors—

price, buyer income, the price of related goods, consumer tastes, and any consumer expectations of future supply and price.

As these factors change, so does the quantity demanded.

There are following types of demand-

Composite demand. Short-run and long-run demand.Price demand. Income demand. Competitive demand.

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true or false: the total value added for the three producers in this economy does not equal the economy's gdp.

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This statement is False. The total value added for the three producers in this economy is equal to the economy's GDP. Gross domestic product (GDP) is the total value of all goods and services produced in an economy during a given time period.

Value added is the difference between the total value of an output and the total value of the inputs used to produce that output. When you add up the value added of all the producers in an economy, it should equal the GDP of that economy. This is because all the value added by producers is included in GDP.

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you have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. you expect to earn 12% annually on the account. how many years will it take to reach your goal? brigham, eugene f.; ehrhardt, michael c.. financial management: theory

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The number of years it would take to reach your goal in a brokerage account is 15 years 10 months.

What is a brokerage account?

An investor opens a brokerage account with a licenced brokerage firm, which then uses the funds the investor has deposited to conduct trades on the client's behalf. The assets are owned by the investors, who are typically obligated to report any capital gains gained from the account as taxable income, even though the brokerage fulfils orders. From a number of brokerage accounts and brokerage providers, investors can choose the model that best meets their financial needs. Most online brokers only provide a secure interface via which investors may place trade orders, and they bill investors relatively modest fees for this service, which is at the other end of the pay spectrum.

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6. as a current lender to meg, would you refinance the $225 million term loan that is coming due? would you refinance the term loan as a new lender?

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In general, the decision to refinance a loan depends on a variety of factors, including the current interest rates, the borrower's creditworthiness, and the terms of the loan agreement.

If the current interest rates are lower than the rate on the existing loan, refinancing may be a good option to reduce the cost of borrowing. However, if the borrower's creditworthiness has deteriorated since the original loan was issued, it may be more difficult to obtain favorable terms for a new loan.

As a current lender, the decision to refinance would depend on various factors such as the borrower's creditworthiness, repayment history, and the terms of the current loan. If the borrower has a good repayment history and is likely to continue making payments on time, refinancing the loan may be a good option. However, if the borrower's creditworthiness has deteriorated, refinancing may be a risky option.

As a new lender, the decision to refinance the term loan would depend on various factors such as the borrower's creditworthiness, repayment history, and the terms of the new loan. It would be important to carefully evaluate the risks and benefits of refinancing the loan before making a decision.

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if allowance for doubtful accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

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Some creditors are unable to make payments to the firm. Bad debt is the amount of uncollected account receivable. The bad debt is accounted for in the income statement.

The estimated uncollectible is $3,000. It indicates that after adjustment, the credit amount in the allowance for doubtful debt accounts should be $3,000.

The current sum in questionable accounts is $800. (debit)

So, if the closing balance is $3,000, the adjusting entry should be:

 Particulars                                                    Credit ($)               Debit ($)

bad debt expenses                                                                    3,800

for allowance for questionable accounts      3,800

$3,800 in debit to bad debt charges.

When you receive money that was previously written off as uncollectable, you must reverse the write-off item and record the payment. Reverse the write-off item by debiting the accounts receivable account and crediting the allowances for doubtful accounts account. For example, if the Allowance for Doubtful Accounts now has a credit balance of $2,000 and you estimate there is a total of $2,900 in Accounts Receivable that will not be collected, you must add $900 to the Allowance for Doubtful Accounts. You must debit bad debt expenditure and credit allowance for questionable accounts to record bad debt expenses. There is no counter asset account to record bad debt charges when using the write-off technique. As a result, the whole sum in accounts receivable will be recorded on the balance sheet as a current asset.

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Reengineering and continuous improvement have the same definition.a. Trueb. False

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True, the definitions of reengineering and continuous improvement are the same.

Reengineering is what?

Organizational reengineering, often known as Business Process Reengineering, according to Bain & Company, is the process of analyzing all the many layers of an organization's manner of doing business and thinking about how to improve things. Increased business revenues, a stronger competitive edge in the marketplace, and improved public perception are all objectives of BPR.

BPR necessitates that an organization take a careful look at its strengths and flaws, when necessary, ask challenging questions, and make adjustments for the organization's benefit. This is typically a lengthy effort that involves involvement from numerous corporate divisions.

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at her job, sarah doesn't identify what is bothering her team members who report directly to her. two have left the company in the past three months and she didn't probe why they decided to leave. she just assumes they are getting a higher salary elsewhere. sarah is showing a(an)

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She seemed to have no idea whether her coworkers had chosen to depart. She just goes on the supposition that the employees are being paid more elsewhere. Sarah lacks rigor in her actions. is a wise decision.

When we overvalue results, we excuse immoral action if the result is positive.

The very first stage of the Organizational Application's three-stage process (or method) is identification of the problem.

In the pursuit of great performance in history's complicated environment, problem-solving abilities are becoming more and more important. Employees throughout all organizational levels must be capable of thinking critically, assume responsibility for issues effectively make judgments inside the moment.

How are ethics valued so highly while researching corporate conduct?

Throughout your profession and across all organizational levels, you might face moral concerns.

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the composition of a small xyz fund portfolio is as follows: stock shares price a 200 $35 b 300 $40 c 400 $20 the fund has not borrowed any funds, but it has accrued management fee with the portfolio managers currently totals $60. there are 3,000 shares outstanding. what is the net asset value of the mini fund?

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According to the question ,the net asset value of the mini fund is $5.80.

What is net asset value?
Net asset value (NAV) is a term used to refer to the value of an entity's assets minus the value of its liabilities. This figure is typically used to measure the value of a mutual fund, exchange-traded fund, or closed-end fund. NAV is typically calculated on a daily, weekly, or monthly basis, although it can be calculated more frequently. It is calculated by dividing the total net assets of the fund by the number of shares outstanding. The NAV of a fund or portfolio is a reflection of the current market value of the underlying securities, and it is important for investors to understand that NAVs can fluctuate over time. NAV is a key indicator of a fund's performance and can be used to compare the performance of one fund to another.

Net Asset Value = (200*$35) + (300*$40) + (400*$20) - $60 = $17,400

NAV = $17,400/3,000 = $5.80

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the constant-growth valuation model is based on the premise that the value of a share of common stock is

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The constant-growth valuation model is based on the premise that the value of a share of common stock is equal to the present value of all expected future dividends.

The Constant Growth Model is a method of valuing stocks. It is also known as the Gordon Growth Model because it presumes that the company's dividends will continue to grow at a constant rate indefinitely. It assists investors in determining the current fair value of a stock based on expected dividend payments.

For a company that pays a steadily increasing dividend, the fair value of the stock can be estimated using a formula that considers the constantly increasing payout to be responsible again for stock's value. The Required Rate of Return (RRR) is indeed the minimum return on investment that investors are willing to accept in order to keep the stock.

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which of the following describes the system of corporate governance? multiple choice governing a company so that the interests of corporate owners and other stakeholders are protected protecting citizens against unethical state and national governments governing an industry, such as the trucking industry, to protect customers

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The statement that best describes the system of corporate governance is governing a company so that the interests of corporate owners and other stakeholders are protected. Hence, the correct option is (A).

What Is Corporate Governance?

Corporate governance is a system or structure in a company where the company is fully controlled and regulated by the corporate executive board. The use of corporate governance is used to maintain all internal and external factors that can affect stakeholders, customers, government, and also customers. Good corporate governance can also increase consumer confidence in the company because of transparency and also creates principles of security.

The question is incomplete, but most probably your question was:

The statement that best describes the system of corporate governance is 

A. Governing a company so that the interests of corporate owners and other stakeholders are protected

B. Protecting citizens against unethical state and national governments

C. Governing an industry, such as the trucking industry, to protect customers

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the current one-year treasury bill rate is 0.30 percent and the expected one-year rate 12 months from now is 1.00 percent. according to the unbiased expectations theory, what should be the current rate for a two-year treasury security? (do not round intermediate calculations. round your percentage answer to 2 decimal places. (e.g., 32.16))

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Current rate for two-year Treasury security is 0.82%

What is  Treasury security?

Treasuries security including T-bills, notes and bonds - are debt securities issued by the US Treasury. Treasuries are considered one of the safest investments because they are backed by the full faith and credit of the US government.

The United States Department of Treasury issues United States Treasury securities, often known as Treasuries or Treasurys, as a form of tax-free financing for the federal government.

There are 3 types of  Treasury security

Treasury bonds. Short-term interest-free securities (zero coupons) with a maturity of only a few days (called cash management notes), four weeks, 13 weeks, 26 weeks, or 52 weeks. ...

Treasury notes.

Government Bonds

=[(1+ 0.30%) (1+1.0%)]^1/2  - 1  = 0.8166% or 0.82%

So current rate for two-year Treasury security is 0.82%

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which of the following taxpayers is using an income shifting tax planning strategy? multiple choice question. wyatt waited to pay his real property taxes for year 1 until january of year 2 so that he could take the tax deduction in year 2. tyler billed a client in january of year 2 rather than december of year 1 because he is expecting to be in a lower tax bracket for year 2. shelby switched her investments in corporate bonds to nontaxable, municipal bonds. tori (33% marginal tax rate) gave several of her investments to her daughter so that the income will be taxed at the daughter's lower tax rate.

Answers

The statement states that taxpayers are using an income shifting tax planning strategy is "Wyatt waited to pay his real property taxes for year 1 until January of year 2 so that he could take the tax deduction in year 2." Thus, option first is correct.

What is an income shifting tax planning strategy?

Income shifting, often known as income splitting, is a tax planning strategy in which income is transferred from high to low tax bracket individuals. It is also employed to lower the total tax burden by shifting revenue from a high-tax country to a low-tax one.

According to the statement, people use an income shifting tax planning approach, which is, "Wyatt delayed paying his real property taxes for year 1 until January of year 2 so that he could receive the tax deduction in year 2." As a result, option one is correct.

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granite monuments reported $69,000 net cash provided by its operating activities. it invested $2,000 in new equipment and paid $3,000 in dividends. what was granite monuments’ free cash flow?

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Granite invested $2,000 in new equipment and paid $3,000 in dividends. Granite monuments’ free cash flow was $64,000.

What is Managerial accounting?

While financial accounting aims to provide financial information to parties outside the organisation, managerial accounting information is intended to assist managers within the organisation in making knowledgeable business decisions.

To estimate the probable financial inflows and outflows associated with certain business choices, managerial accountants utilise capital budgeting. For instance, if a manufacturer wanted to construct a new manufacturing facility, they would first need to figure out the project's overall cost and estimated return on investment.

It's crucial to monitor and estimate your needs for revenue and expenses. Managers are aided in their decision-making by the data gathered and the outcomes presented.

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if the daily cost per unit of producing a product by the ace company is 25 0.2x dollars, and if the price on the competitive market is $80, what is the maximum daily profit the ace company can expect on this product?

Answers

The maximum daily profit the Ace Company can expect from this product is $54.80 ($80 - $25.20 = $54.80).

What is the profit ?

Profit is the difference between the total revenue and the total costs incurred in producing and selling a product or service. It is a measure of the efficiency and performance of a business. Profit is the monetary gain that is earned when the revenue of a business exceeds the costs incurred in producing and selling the goods or services. It can be used to measure the performance of an organization and its managers. Profit is important for businesses because it can be used to reinvest in the business, cover expenses, pay employees, and increase shareholder value.

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if nominal gdp is $200 and the interest rate is 6 percent, the total amount of money that households and businesses will want to hold is

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The sum of money that families and corporations will wish to hold approximately $140 if nominal gdp are $200 as well as the rate of interest is 6%.

What are real and nominal GDP?

Nominal GDP is the data collected in today's money, without the effects of inflation. Real GDP eliminates any distortion brought on by deflation or inflation by adjusting the statistics by fixing the value of the currency.

What's really nominal GDP explained simply?

The value of all commodities and services produced during a particular time frame less the value of the those created throughout the production process is the nominal GDP, to put it simply. GDP measures the monetary worth of all the services and goods a nation produces. One metric for assessing the health of the economy is nominal GDP.

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the use of this type of deed has largely been supplanted by a grant deed due to the practice of securing title insurance policies, which have reduced the importance of express warranties in deeds?

Answers

Yes, the use of the Quitclaim Deed has largely been replaced by a Grant Deed due to the increased availability of title insurance policies.

What is insurance policies?

Insurance policies are legally binding contracts between an insurance company and an individual or business. These contracts outline the terms and conditions of the insurance coverage, including the type and amount of coverage, the premiums that must be paid, and the terms of payment.

When a property is sold using a Quitclaim Deed, the seller does not provide any warranties related to the title of the property, meaning that the buyer is taking on a significant risk in trusting that the deed is good and valid. Title insurance policies provide the buyer with financial protection in the event that any problems with the title arise in the future. By contrast, a Grant Deed does provide the buyer with certain warranties, such as that the property is free from encumbrances and third-party claims. As such, many people prefer the extra protection offered by the Grant Deed, even if it means paying a little extra for the title insurance policy.

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how long will it take you to double your money if you invest it at a rate of 8% compounded annually math work

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It will take approximately 9.15 years to double your money with an 8% annual rate of return.

To double your money with an 8% annual rate of return, you can use the formula:

[tex]P = P0 * (1 + r)^n[/tex]

where:

P is the final amount (the amount after t years)

P0 is the initial amount (the amount at t=0)

r is the annual interest rate (expressed as a decimal)

n is the number of years

Setting P = 2P0, we can solve for n:

[tex]2P0 = P0 * (1 + r)^n[/tex]

[tex]2 = (1 + r)^n[/tex]

[tex]n = log2 / log(1 + r)[/tex]

For r = 0.08 (8% annual interest rate), [tex]n = log2 / log(1 + 0.08) = 9.15[/tex] years.

So it will take approximately 9.15 years to double your money with an 8% annual rate of return.

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what are the 7 variables (or aspects of communication) that impact uncertainty and how does each impact uncertainty?

Answers

The answer is verbal communication, nonverbal communication, information seeking, intimacy level, reciprocity, similarity, and liking, are the 7 variables that impact uncertainty.

In plain English, what is communication?

Talking, writing, listening, and reading are all forms of communication. Sharing information is also a type of communication. Good communicators pay close attention, are clear in their speech or writing, and respect the views of others.

What three ways are communication defined?

There are three fundamental types of communication: Three types of communication exist: verbal communication, which involves listening to someone to understand what they mean; written communication, which involves reading what they mean; and nonverbal communication, which involves observing someone and drawing conclusions about what they are trying to say.

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the most rencent financial statements for alexander co are shown below asses and costs are proportional to sales. the company maintains a constant 30 percent divident payou tratio and a consant debt equity ration what is the maximum icrease in sales that can be sustained assuming no new equity is issued?

Answers

The maximum sales increase that can be sustained if no new equity is issued is $4697.9.

What is the maximum increase in sales?

In order to determine the maximum dollar increase in sales without issuing new equity, we must use the sustainable growth rate, whose formula is.

(Return on equity x Retention ratio) / [1 - (Return on equity x Retention ratio)]

In this case, we need to subtract the sustainable growth rate and multiply it by total sales.

So, first, compute the components of the sustainable growth rate -

Net income / Total equity = Return on equity

= $5,850 / 48,940

= .1195

Dividend payout ratio = 1 - Retention ratio

= 1 - 30%

= 1 - .3

= .7

Now calculate the significant growth rate =

1 - (Return on equity x Retention ratio)

= (.1195 x .7) / [1 - (.1195 x .7)]

= 0.0836/ [1 - 0.0836] .0.0836]

= 0.0836/ 0.0766

= 1.09( multiplying by 100 to make in percentage)

= 10.9%

By multiplying this by total sales we get,

Maximum increase in sales = $43,100 X 10.9%

                                                      = $ 4697.9

The complete question:

"The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 43,100 Current assets $ 17,660 Long-term debt $ 37,120 Costs 35,600 Fixed assets 68,400 Equity 48,940 Taxable income $ 7,500 Total $ 86,060 Total $ 86,060 Taxes (22%) 1,650 Net income $ 5,850 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)"

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