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Using examples of your choice, discuss whether the desirability of the worldwide movement towards the market economy and away from the planned economy
⦁ Explain the Law of diminishing return and why is it applicable especially in agriculture sector?
⦁ What is the relationship between the marginal revenue curve and the demand curve for a single-price monopolist?
using the AD-AS curve. an increase in the price of imported crude oil will:
Using the AD-AS analysis. A rise in the repo rate will
Given u(x,y)=10x0.6y0.4 marginal utility of two commodities when x=2 and y=3
3. X Company is evaluating its cost of capital under alternative financing arrangements. In consultation with investment bankers, X Company expects to be able to issue new debt at par with a coupon rate of 10% and to issue new preferred stock with a $4.00 per share dividend at $25 a share. The common stock of X Company is currently selling for $20.00 a share. X Company expects to pay a dividend of $2.50 per share next year. Market analysts foresee a growth in dividends in Invest stock at a rate of 5% per year. Invest does not expect its cost of debt, preferred stock or common stock, to be different under the two possible financing arrangements. X Company marginal tax rate is 40%. Hint: coupon rate of the bond is the same as the before-tax cost of debt. The two arrangements are: Financing Arrangement, Debt, Preferred Stock, Common Stock, respectively
1, 20% 30% 50%
2, 50% 30% 20%
A. What is the weighted average cost of capital to X Company under the first financing arrangement?
How to calculate equilibrium income using the multiplier???
Mpc=0.75
Multiplier =4
Investment =200 million
Autonomous consumption =100 million
2. Based on the following information answer questions Holy products corporations have the following capital structure, which it considers optimal: Bonds, 7% (at par) Br 300,000
Preferred stock, Br.5 240,000
Common stock 360,000 Retained earnings 300,000 Additional Information: Dividends on common stock are currently Br 3 per share and are expected to grow at constant rate of 6%. Market price of common stock is Br 40 and the preferred stock is selling at Br50. Flotation cost on new issues of common stock is 10%. A. Based on the above information, what would be the cost of the bond? B. What would be the cost of common stock for Holy Products Corporation?
1, Bonds with a nominal rate of interest of 7% are issued to yield 8% will bond sell at a premium or a discount?
2, Compare and contrast Petty Cash and Voucher Payable by giving tangible examples how to undertake both systems.
3, Write at least six types of short-term investment (discuss detail distinction features of each security).
4, Write history of IFRS adoption in Ethiopia: role of IFRS in the development of accounting standards in Ethiopia and challenges of adopting IFRS.
