The One Product economy, which produces and sells only
personal computers (PCs), expects that it can sell 500 more, or 12,500
PCs, next year. Nominal GDP was $20 million this year, and the
money supply was $7 million. The central bank for the One Product
economy plans to increase the money supply by 10 percent next year.
a. What was the average selling price for the personal computers
this year?
b. What is the expected average selling price next year for
personal computers if the velocity of money remains at this
year’s turnover rate? What percentage change in price level is
expected to occur?
c. If the objective is to keep the price level the same next year
(i.e., no inflation), what percentage increase in the money
supply should the central bank plan for?
d. How would your answer in (c) change if the velocity of money
is expected to be three times next year? What is it now?
Assume that a country estimates its M1 money supply at $20
million. A broader measure of the money supply, M2, is $50 million.
The country’s gross domestic product is $100 million. Production or
real output for the country is 500,000 units or products.
a. Determine the velocity of money based on the M1 money
supply.
b. Determine the velocity of money based on the M2 money
supply.
c. Determine the average price for the real output.
Following are components of the M1 money supply at the end of
last year. What will be the size of the M1 money supply at the end of
next year if currency grows by 10 percent, demand deposits grow by
5 percent, other checkable deposits grow by 8 percent, and the
amount of traveler’s checks stays the same?
A local supermarket would like to introduce its own brand of paper good (i.e., paper towels, facial tissue, etc.) to sell alongside its current inventory. The company has hired you to generate a report outlining the advantages and disadvantages of doing so. Write the report.
Hi, i have to calculate the initial, operating and terminal cash flows and then find NPV.
The WACC i already found it and its 10.67% - the currency used here is bahraini dinar BD
Option 1: Lease the empty building next door, install new equipment, increase sales by 30%
Estimated cost of new equipment – BD500,000. Estimated useful life is 5 years. The investment in
inventory is expected to double. The lease of new premises will be BD 5,000 per month – however
there will be no change in other operating costs.
CURRENT SALES REVENUE= 750,000
CURRENT INVENTORY= 35,000
Additional Information
Bahrain has recently introduced a corporate tax rate of 30%.
Awali Bakery has a policy of 20% straight line depreciation on all fixed assets.
Awali bakery has a policy that Goodwill is amortised over 3 years.
Approximately 60% of all sales are on credit.
The current loan has an interest rate of 8%pa which is fixed for the next 5 years.
How do i find the required calculation ?
Critically review the requirements of FRS 118 Revenue, and its application in the financial statements of three Malaysian companies listed on Bursa Malaysia. Select one each from the manufacturing, trading and finance sectors respectively.