Answer:
A. In government expenditures and imports.
Explanation:
We are informed about how The city of Ann Arbor Michigan buys a police car manufactured in Germany.
In the case of this transaction, it is included in GDP accounts in government expenditures and imports.
GDP which is known as Gross Domestic Product can be explained as the total market value of domestic finished goods/service that are been produced in a particular period in a country. The net export, as well as consumption and government expenditures and investment are taking into consideration in GDP. It should be noted that social security payment is not accounted with GDP
If 10 year t bonds have a yied of 6.0%, 10 year corporate bonds yield 8.0%, the maturity risk premium on all 10 year bond is 1.0%, and corporate bonds have a 0.1% liquidity premium versus a zero liquidity premiun for t bonds what is the default risk premium on the corporate bond?
Answer:
Default risk premium = 1.9%
Explanation:
r = r* + IP + MRP + DRP + LP
Where, IP is the Inflation premium, MRP = market risk premium, DRP=default risk premium, LP=liquidity risk premium, R* = Real risk free rate
The only factors above which will different in T bond and corporate bond is LP and DRP and others will be same
Corporate bond yield=8.0%
T bond yield=6.0%
LP=0.1%
(8.0%-6.0%)=LP+DRP
DRP = 2.0%-0.1%
DRP = 1.9%
The company’s cost of capital is 8.5%. a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.) d. Is the company creating value for its shareholders?
Answer:
A. $21.32 millions
B. 10.45%
C. 22.19%
D. Yes
Explanation:
A. Calculation for the Watervan’s economic value added (EVA)
Using this formula
Economic value added (EVA) = [EbIT x (1 - tax rate)] - (Cost of capital x invested capital)
Let plug in the formula
Economic value added (EVA)
= 98 millions x (1 - 0.21) - (8.5% x 660 million)
Economic value added (EVA)= 77.42 millions - 56.1 millions
Economic value added (EVA)= $21.32 millions
Calculation for Tax rate
Tax rate = 15.75/75 x 100
Tax rate= 21%
B. Calculation for the company’s return on capital
Using this formula
Return on capital = Net income/invested capital
Let plug in the formula
Return on capital= 59.25/567 x 100
Return on capital = 10.45%
C. Calculation for return on equity
Using this formula
Return on equity = Net Income/Shareholders equity
Let plug in the formula
Return on equity= 59.25/267 x 100
Return on equity= 22.19%
D. Yes the company is creating value for its shareholders reason been that the company return on equity is on the high side .
What could you do to make sure a new employee you hired complies will all applicable rules, laws, and regulations related to their position? Give at least two examples of policies, practices, or procedures that would help.
Answer:
Explanation:
Policies should provide good guidelines and expectations to ensure fair and consistent ... If there is a need for government laws and regulations compliance (e.g., the ... For example, "All employees will be subject to this new policy/revision as of [date].
The September 30 bank statement for Cadieux Company and the September ledger account for cash are summarized here: BANK STATEMENT Checks Deposits Other Balance Balance, September 1 $ 2,200 September 7 NSF check $ 100 2,100 September 11 $ 3,300 5,400 September 12 #101 $ 900 4,500 September 17 #102 1,900 2,600 September 26 #103 2,400 200 September 29 EFT deposit 200 400 September 30 Service charge 20 380 Cash (A) Sep 1 Balance 2,200 Sep 10 3,300 900 Sep 10 #101 Sep 30 3,000 1,900 Sep 15 #102 2,400 Sep 22 #103 50 Sep 28 #104 Sep 30 Balance 3,250 No outstanding checks and no deposits in transit were noted in August. However, there are deposits in transit and checks outstanding at the end of September. The NSF check and EFT involved transactions with Cadieux Company’s customers. Required: Prepare a bank reconciliation.
Answer:
Bank account reconciliation:
Bank balance $380
+ deposits in transit $3,000
- outstanding checks ($50)
reconciled bank balance $3,330
Cash account reconciliation:
Cash balance $3,250
- NSF check ($100)
+ EFT deposit $200
- bank fees ($20)
reconciled cash account $3,330
Explanation:
Bank statement
Checks Deposits Other Balance
Balance, September 1 2,200
September 7 NSF check 100 2,100
September 11 3,300 5,400
September 12 #101 900 4,500
September 17 #102 1,900 2,600
September 26 #103 2,400 200
September 29 EFT deposit 200 400
September 30 Service charge 20 380
Cash account
Sep 1 Balance 2,200
Sep 10 3,300 900 Sep 10 #101
Sep 30 3,000 1,900 Sep 15 #102
2,400 Sep 22 #103
50 Sep 28 #104
Sep 30 Balance 3,250
According to the video, which tasks are Special Education Teachers likely to perform? Check all that apply. teaching basic subject material driving students to and from school working with educational technology working with and meeting with parents preparing lesson plans volunteering in public libraries interviewing other teachers to hire
Answer:
Teaching basic subject material,working with educational technology,working with and meeting with parents,preparing lesson plans
Explanation:
Just took the assignment Hope this helped
Answer:
look at the picture
Explanation:
URGENT- FINANCIAL MATH.One of the variable expenses that Roxy knows she’ll need to include in her budget is utilities. She decides to review her utility costs for the past year. Assuming the cost for utilities is the same in her new apartment, how much should Roxy budget each month for utilities this year? Explain your reasoning.
Answer:
Roxy should budget 2165. per year. So maybe a monthly of 144 for the average of the total. For the year I added all the months together and then monthly I added them together and then divided the total by 12 and the average is 144 a month.
Explanation:
If you add them all together that is the total. I hope this helps. But the utilities could be different where she is going.
