Answer:
d) Equity would increase by $63,228
Explanation:
We are not given any information about stock prices, but we do not need them. Whenever new common stocks are issued, stockholders' equity will increase (always).
Retained earnings are affected by net income and dividends:
- net income increases retained earnings
- dividends decrease retained earnings
Answer:
The second definition
Explanation:
The bus companies would have preferred the second definition because it's a broad definition and shows their complete product line and facilities. The first definition is a hollow definition that does not show a complete range of facilities the companies are going to offer to it consumers after the merger, and it just shows that they have a facility for just intercity services.
Answer:
<em>A. True</em>
Explanation:
When the government enacts policies that lead to lower mortgage lending standards and lower interest rates, their actions can indirectly lead to higher home prices. This is because the lower interest rates and lower quality mortgage lending will boost housing credit demand which can lead to higher prices of houses due to increase in their demand.
The lower quality lending (<em>sub-prime lending</em>) and lower interest rates can thereby lead to an <em>real estate bubble</em> in the economy. This bubble when it bursts can cause a <em>financial recession</em> in the economy. Thus, the government should be very careful while supporting loose credit policies.
Answer:
E.T. the Extraterrestrial
Adjustment for inflation in 1997
Value of E.T. box office receipts = $723,681,284.11 ($435,110,554/96.5 x 160.5)
Explanation:
To adjust a 1982 receipts for inflation in 1997, the 1982 receipts is divided by the 1982 price index and multiplied by the 1997 price index. This results to an inflation-reflected receipts in 1997.
The adjustment helps to put a value that is equivalent to the current price (assessed period's current price) having factored in inflation.
A Consumer Price Index is a statistical estimate that measures the changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is measured periodically to reflect inflation.
Inflation is the general rise in the prices where a unit of currency yesterperiod buys less today than it did. It is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
