Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.
Explanation:
When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.
A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.
Answer:
- Common Stock: 3,500,000
- Additional paid-in capital-Common Stock: 2,100,000
- Retained earnings: 995,000
Total stockholders' equity: 6,595,000
Explanation:
- <u>Common Stock:</u> Values at the common stocks par value. (3,500,000 = 700,000 * 5)
- <u>Additional paid-in capital-Common Stock: </u>Difference between the paid price by stockholders and par value. The negations made after the issue of the stocks are not taken into account because they don´t include the company. (2,100,000 = 700,000 * 3)
- <u>Retained earnings:</u> As the dividend are declared after the end of the accountable year they are not taken into account. So the retained earnings final balance include the beginning balance plus the net income of the accountable period. (995,000)
- <u>Total stockholders' equity: </u>Addition of the previous items.
Answer:
The correct option here is D) $450,000.
Explanation:
The differential revenue from the acceptance offer is the additional amount of revenue that will be generated without affecting the revenue generated from the domestic sales in the normal course of operations.
The differential revenue from acceptance of offer can be calculated as -
= Selling price per unit per offer x number of units per offer
= $15 x 30,000
= $450,000
Therefore $450,000 is the differential revenue from the acceptance of offer.
Answer:
Lane splitting is riding a bicycle or motorcycle between lanes or rows of slow moving or stopped traffic moving in the same direction. It is sometimes called whitelining, or stripe-riding. This allows riders to save time, bypassing traffic congestion, and may also be safer than stopping behind stationary vehicles.
Explanation:
