The link between changes in central bank's balance sheet and quantity of money in economy because it ignores fact that people might change their currency holdings.
What is a balance sheet?Financial accounting summarizes the financial balances of an organization, whether it is a sole proprietorship, business partnership, corporation, private limited company, or another type of institution like the government or a not-for-profit, on a balance sheet. Assets are listed on the left side of a balance sheet for a business, while financing—which is broken down into obligations and ownership equity—is listed on the right. Most frequently, the key kinds of assets are grouped in ascending order of liquidity. The calculation for the balance sheet can also be thought of as total assets equal to liabilities plus owner's equity. Balance sheets typically have two columns: one for assets, the other for obligations and net value, with the two columns "balancing."
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Homeowners insurance costs are ______ in states that are more susceptible to hurricanes, floods or tornadoes.
Homeowners insurance costs are higher in the states that are more susceptible to hurricanes, floods or the tornadoes.
What is a insurance?As a way of financial loss protection, a party agrees to guarantee another party reimbursement in the case of a certain loss, damage, or injury in exchange for a fee. An underwriter, insurer, insurance company, or carrier is a business that provides insurance. A person or organization that obtains insurance is known as a policyholder, whereas a person or organization that the policy protects is known as an insured. In an insurance deal, the insured promises to pay the insurer back in the case of a covered loss in exchange for the insurer's agreement to accept payment from the policyholder for a predictable, modest, and assured loss.
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dune company is replacing an old machine with a new, more efficient machine. dune purchased the old machine for $600,000 and there is $180,000 of accumulated depreciation recorded on the machine. it has a 10-year remaining useful life and it costs $480,000 per year to operate. the new machine would also have a 10-year useful life, it would cost $1,200,000 and its annual operating costs would be $361,200. if the old machine is replaced, it can be sold for $48,000. which of the following amounts is relevant to the replacement decision?
The following amounts is relevant to the replacement decision :- It is more convenient the new machine.
We will make an incremental analysis.
Year 0= 48,000 - 1,200,000= -1,152,000
Year 1 to 10:
Cost save= 480,000 - 361,200= 118,800*10= 1,188,000
Effect on income= 1,188,000 - 1,152,000= 36,000
It is more convenient the new machine.
A machine is a physical system using strength to use forces and manipulate movement to carry out an movement. The term is normally applied to artificial devices, consisting of those employing engines or automobiles, but additionally to natural biological macromolecules, such as molecular machines.
A machine is a component this is created with the aid of humans to make work easier. it is a tool or invention which multiplies the impact of human effort. The machine produces a mechanical benefit.
Machines can perform our obligations in a faster, faster, and greater efficient manner. Our phones, laptops, refrigerators, microwaves, etc. are all examples of machines which help us in carrying out numerous duties readily.
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bonds (and notes) have specific assets of the issuer pledged (or mortgaged) as collateral. multiple choice question. term registered convertible secured
Answer: Secured Bonds
Explanation: Trust me bro
As the buyer-supplier network grows in size and complexity, the need to have a more informal system for evaluating current sources also increases.
True
False
This claim is untrue because a more informal approach for evaluating existing sources is required as the buyer-supplier network expands in size and complexity.
What is informal system?Ad hoc, informal work groups can develop informal systems to fulfil information needs that formal systems are unable to address. These are strong systems that successfully serve many organisations' various needs. Informal systems for gathering, processing, storing, or disseminating data do not adhere to any formal or pre-established rules.
Why should systems analysts be aware of informal systems?If a system analyst is well-versed in the formal and informal structures of an organisation , they can quickly identify candidates for system analysis phase interviews. The establishment of formal systems requires a lot of time and work, and people are frequently resistant to change, which leads to the emergence of informal systems. There are instances where a system is required but there isn't enough time to wait for one to be formally built. To handle the problem, an informal system is formed (perhaps including components of the previous system). Until a formal system can be constructed, the informal system is frequently intended to be used in the interim. However, because it is a functioning system and there are demands for the time and money needed to construct or maintain other formal systems, the temporary system frequently becomes the established system. Additionally, unofficial mechanisms develop to deal with unique situations that cannot be resolved by modern technologies.
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if the auditor believes that financial statements prepared on the entity’s income tax basis are not suitably titled, the auditor should
If the auditor believes that financial statements prepared on the entity’s income tax basis are not suitably titled, the auditor should Qualify the opinion.
An auditor is a person or company that a business hires to perform an audit. A person must be qualified by the organization that oversees the accounting and auditing, as well as other requirements, to act as an auditor. Usually, a person needs a practicing certificate from a regulatory body to work as a company's external auditor.
An impartial entity known as an external auditor or statutory auditor is employed by the client being audited to express an opinion on the absence of material misstatement in the company's financial statements. company, including errors due to fraud or error.
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all of the following statements about data mining are true except: select one: a. understanding the business goal is critical. b. understanding the data, e.g., the relevant variables, is critical to success. c. building the model takes the most time and effort. d. data is typically preprocessed and/or cleaned before use.
All of the following statements about data mining are true except . understanding the business goal is critical.
Data mining is the manner of locating anomalies, patterns and correlations inside large statistics units to are expecting results. the use of a extensive range of techniques, you may use this data to boom revenues, cut prices, enhance client relationships, reduce dangers and more.
Statistics mining is the process of sorting thru huge information units to perceive patterns and relationships that may assist solve business troubles through information analysis. facts mining strategies and tools allow companies to predict destiny traits and make more-informed business decisions.
Advertising and marketing. statistics mining is used to explore increasingly more large databases and to improve marketplace segmentation. by means of analysing the relationships among parameters along with consumer age, gender, tastes, and so on., it's far feasible to wager their behaviour in an effort to direct personalised loyalty campaigns.
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What is a common flaw of research studies that find an association between obesity and disease rates?.
Answer:One such problem is a phenomenon that researchers call “reverse causation”: Low body weight often results from chronic disease, rather than being a cause of chronic disease.
Explanation:
The Coffee Collective is seeking to identify customers who want a unique coffee-drinking experience and are open to a loyalty rewards program. In doing so; the Coffee Collective is determining its Mutiple Choice misket orlentation. market segment. matkoting mix. makelprogam. Multole Choice market oeientation. market segment. marketing mic. market program. makketing concept.
The Coffee Collective is seeking to identify customers who want a unique coffee-drinking experience and are open to a loyalty rewards program. In doing so; the Coffee Collective is determining its Market segment.
In order to provide particular items or product lines to consumers in a way that appeals to their interests, market segmentation is a marketing approach that involves identifying specific groups of consumers. Market segmentation is the practise of breaking a large consumer or corporate market, often made up of current and potential customers, into smaller consumer groups based on some sort of shared attribute. You can divide your potential clients into segments using target marketing segmentation. You'll then concentrate on a small number of market categories that best match your goods or services. You may boost longevity and draw in new customers by taking advantage of their requirements and desires.
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if a firm has an operating income of $225,000, revenues of $900,000, and interest expense, other expenses, and taxes of $85,000, the net profit margin of the firm is
If a firm has an operating income of $225,000, revenues of $900,000, and interest expense, other expenses, and taxes of $85,000, the net profit margin of the firm is equal to the net difference between the operating income and interest expense, other expenses, and taxes divided by revenue.
Sales is the whole quantity of profits generated through the sale of goods and services related to the primary operations of the enterprise. commercial revenue can also be called sales or as turnover. a few businesses acquire sales from hobby, royalties, or other fees.
Revenue definition says that it's miles the overall sum of money obtained from wearing out the enterprise operations inclusive of income.
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In the resource market, the output effect means that the firm will purchase _________ of one particular input when the price of the other input falls and __________ of that particular Input when the price of the other Input rises.
According to the output effect in the resource market, the firm will buy more of a specific input when the price of the other input decreases and less of that specific input when the price of the other input increases.
output effects in the market for resources
The output effect happens when a company can produce additional products using a lower-cost input, increasing the demand for the resource. Unsurprisingly, the relative importance affects the net result of substitution and output. Demand will decrease for a specific resource if the substitution effect is more significant, and vice versa. There will be more demand for the resource if the output effect is more pronounced.
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mosaic tile company is considering an investment in new equipment costing . the equipment will be depreciated on a straightline basis over a fiveyear life and is expected to have a residual value of . the equipment is expected to generate net cash inflows of in total during the fiveyear life. what is the accounting rate of return associated with the equipment investment? (round your answer to two decimal places.)
The accounting rate of return associated with the equipment investment is 49.10%.
The accounting rate of return (ARR) formula is useful in determinant the annual share rate of come of a project. ARR is calculated as average annual profit / initial investment. ARR is usually used once considering multiple comes, because it provides the expected rate of come from every project.
An investment involves putting capital to use nowadays so as to extend its worth over time. An investment needs putting capital to figure, within the kind of time, money, effort, etc., in hopes of a bigger payoff within the future than what was originally place in.
The question is incomplete, find the complete question here
Mosaic tile company is considering an investment in new equipment costing $850,000. the equipment will be depreciated on a straightline basis over a five year life and is expected to have a residual value of $54,000. the equipment is expected to generate net cash inflows of $1,000,000 in total during the five year life. what is the accounting rate of return associated with the equipment investment? (round your answer to two decimal places.)
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according the u.s. department of transportation, the is the transportation mode of choice for most goods.\
According to the U.S. Department of Transportation, the truck is the transportation mode of choice for most goods.
Since the days of shipping made with horses and wagons, road transportation has advanced significantly. More than 54% of all northern border freight between Canada and the United States is transported by truck. For sectors that need quick, modest products delivered directly to a business, warehouse, or customer's door and are prepared to deal with potential delays, truck transportation is suitable.
If you need to ship a sizable amount of goods, trucks are fantastic. However, you are somewhat constrained by the size, weight, and capacity of your shipment as well as federal and state weight regulations.
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an admin has created a configuration attribute on the product a bundle, and now needs an identical configuration attribute on the product b bundle that saves its value into the same quote line field. which tasks should the admin complete to meet this business requirement?
No additional administration is needed; simply add another configuration attribute on item B.
The attribute in CPQ is what?any product choice may be given a configuration property. In your Crm CPQ bundle settings, you can activate global attributes. Once enabled, Salesforce CPQ gives you the option to select a config attribute or a worldwide attribute as the record type whenever you create an config attribute.
What does Salesforce CPQ configuration entail?Every edition of Salesforce CPQ. Type of Configuration When users can access the Specify Goods page and whether they must configure specific parameters is determined by the Configuration Type field. The setup events you can select depend on your configuration type.
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Total cash disbursements for
inventory is $50,000, for
selling and administrative
expenses is $30,000, and for
a capital expenditure is
$40,000. Total cash
disbursements on the cash
budget are
$60,000.
$50,000.
$80,000.
$120,000.
$70,000.
On the cash budget, there have been $120,000 worth of cash disbursements.
Disbursements of cash, definedA cash disbursement occurs when funds are sent from one party to another's bank account. When it comes to business accounting, a disbursement is a cash payment that is made within a predetermined time frame and documented in the company's general ledger. The company's historical cash flow trends are seen in this list of expenses.
A cash disbursement diary usually contains double-entry bookkeeping debit and credit entries. For funds that have been paid, a credit is applied to a cash account. As a debit to accounts payable, payments for invoices are made, reducing the account's credit balance.
Given:for inventory $50,000
for selling ,administrative expenses $30,000
Capital expenditure are $40,000
Thus the total cash disbursements = $40,000 + $30,000 + $50,000 = $120,000
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ebook question content area differential analysis report for machine replacement proposal catalina tooling company is considering replacing a machine that has been used in its factory for two years. relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows
The operations of the old machine and the new machine, neither of which has any estimated residual value.A Keep using the old machine (Alt. 1) $305,400.Update Old Machine (Alt. 2) $312,000
Differential impact on net income $6,600 (Alt.
Use the old machine as before Alternative.
The creation of a differential analysis on February 18 to determine whether to keep the current machine (Alternative 1) or replace it (Alternative 2).Replace Old Machine or continue using Old Machine (Alt (Alt. 2) 18 February.Move on to Old Machine (Alt. 1) Update Old Machine (Alt. 2) Various effects on net income (Alt. 2)income from the sale of an old machine $0 $215,300\s$215,300Costs: Purchase cost $0 -$283,100 -$283,100 6 years of direct labour: -$305,400 -$244,200.$61,200\s($50,900*6years=$305,400)
($40,700*6years-$244,200).Earnings (Loss): $305,400, 312,000, 6,600.
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which of the following describes the first step in the union organizing process? question 23 options: 1) employees request a visit from union officials to determine which union will be the best match to their needs. 2) employees select a list of alternative unions. 3) nrlb clears the way for a vote on whether to unionize. 4) union makes contact with employees. 5) employees set up objectives which unions will need to achieve.
Employees are contacted by the union, A trade union, or simply a union, is a group of employees committed to "maintaining or improving the terms of their employment," such as securing higher wages and benefits.
What can employees anticipate from their union?The benefits you cherish, such as appropriate salary increases, affordable health insurance, job security, and a regular schedule, are guaranteed by a contract that is created and upheld by union members and management. better working conditions, free from retaliation worries.
What does a worker's union status mean?A union is formed by workers who come together and utilize their collective influence to have a say in how things are done at work. Through their union, employees can negotiate from a position of strength with employers concerning compensation, benefits, workplace health and safety, job training, and other issues pertaining to the workplace.
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The process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements is referred to as:
A. incremental cash flows.
B. estimation and depreciation analysis.
C. pro forma analysis.
D. substitute and complement.
Pro forma analysis is the process of forecasting future cash flow for a project utilizing only the pertinent income and preparing financial data.
What do u mean by income?Income is sometimes used to refer to the total amount of money, property, or other transfers of value received over a defined time period in exchange for services or goods. There is no single, accepted meaning of income; rather, it depends on the context in which the term is used.
What different types of income are there?Earned, passive, & portfolio income are the three basic types of income. Wages, commissions, tips, and salaries all are examples of earned income. Limited partners, rental properties, or royalties are a few examples of potential inactive or unearned income streams. Interest
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which one of the following states that the difference in interest rates between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate? refer to section 18.4 page 601. group of answer choices relative purchasing power parity interest rate parity arbitrage equilibrium absolute purchasing power parity
The correct answer is option B - Interest rate parity
According to interest rate parity, the foreign country's forward exchange rate will depend on the difference in the two countries' exchange rates.
The interest rate parity (IRP) theory states that the difference between the forward and spot exchange rates is equal to the difference in interest rates between two countries.
The main equation governing the relationship between interest rates and exchange rates is known as interest rate parity. The underlying principle of IRP is that hedged returns from investments in different currencies should be the same regardless of the interest rates related to those currencies.
So Interest rate parity is the correct 2
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Full question :which one of the following states that the difference in interest rates between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate? refer to section 18.4 page 601.
relative purchasing power parity
interest rate parity
Absolute purchasing power parity
Cross rate parity
arbitrage equilibrium
Suppose that at the beginning of the year there are ten cranes in the economy. During the course of the year, three cranes wear out and are replaced. At the same time, net investment i equal to three cranes. Click the answer you think is right Gross investment is equal to stx cranes Gross investment is equal to 10 cranes. Gross investment is equal to three cranes Gross investment is equal to seven cranes.
(a) Gross investment is equal to six cranes is the correct option.
What is investment?⇒ Investments are financial commitments made to acquire assets in the hopes that their value would rise over time.A present resource, such time, money, or effort, must be lost in order to invest.
In the world of finance, investing is done in order to profit from the asset being put to use. An unrealized capital gain (or loss), investment income like dividends, interest, or rental income, a mix of capital gain and income, as well as a gain (profit) or loss realized through the sale of a house or investment, may all be included in the return. Due to fluctuating exchange rates, the return may also include foreign exchange gains or losses.
Calculation:
During the course of the year, 3 cranes wear out and are replaced. Therefore, depreciation = 3 cranes.
Given that, net investment = 3 cranes.
⇒ Net investment = Gross investment - Depreciation
Or, Gross investment = Net investment + Depreciation
Or, Gross investment = 3 + 3 = 6 cranes
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a. identify each hurdle that shoppers must typically clear to obtain these promotional deals. remembering to bring the discount card to the store or providing the clerk with your phone number taking time to fill out a form divulging personal information, such as one's age and e-mail address b. rewards membership offerings benefit stores by enabling them to gain a unque competitive advantage, so that they can dominate the market. make sales they would not otherwise make. track data, such as buying habits, on their customers make sales they would not otherwise make.
The statement holds that both alternatives 1 and 1 as well as all three possibilities are legitimate.
What was the old name for shoppers?Taylor. By 1962, Koffler's had expanded to a franchise of 17 pharmacies; in the 1970s, he changed the name to "Shoppers Drug Mart." The term "Shoppers Drug Mart" originated from the first store with that name at Shoppers World Danforth.
Are Americans shopping?Serving the Northern Virginia, Cumberland, and Washington, D.C. areas is something Shopper Food and thus is proud to do. Customers may expect a full-service supermarket from Shoppers, but we'll never lose sight of our "Daily Low Warehouse Prices" roots.
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The complete question is-
Most stores offer rotating promotions that provide discounts on various products. however, at many of them, you must become a rewards member to take advantage of the deals. the price of the membership is free. you are probably familiar with this process at grocery stores, pharmacies, and even pet supply chains. a. identify each hurdle that shoppers must typically clear to obtain these promotional deals. taking time to fill out a form divulging personal information, such as one's age and e-mail address remembering to bring the discount card to the store or providing the clerk with your phone number b. rewards membership offerings benefit stores by enabling them to gain a unque competitive advantage, so that they can dominate the market. make sales they would not otherwise make. track data, such as buying habits, on their customers.
zwang, incorporated, needs to raise $33.3 million, including all accounting and legal fees, to finance its expansion so has decided to sell new shares of equity via a general cash offering. the offer price is $17.75 per share and the underwriting spread is 6.95 percent. how many shares need to be sold?
Shares need to be sold is 1.74 million.
the 6.95 % of share are already taken.
the company need to sell = 100 - 6.95
= 93.05 %
remaining amount of the distribution = remaining percent × total finance
= 93.05 / 100 × $ 33.3 million
= $30.985 million
per share price = total share price / pre share price
= $ 30.985 / $ 17.75
= 1.74 million
Thus, zwang, incorporated, needs to raise $33.3 million, including all accounting and legal fees, to finance its expansion so has decided to sell new shares of equity via a general cash offering. the offer price is $17.75 per share and the underwriting spread is 6.95 percent. the shares need to be sold is 1.74 million.
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Which promotion mix element involves prospecting, presenting, closing, and follow-up?.
The presentation and marketing of products and services in person is referred to as personal selling. Various promotional tools can be used to advertise the goods.
What are personal sales and what do they entail?
Direct marketing is a two-way conversation where the salesperson tries to offer the product while responding to the questions and concerns of the potential customer. It entails educating the potential or current consumer about the good or service, its characteristics, qualities, price, etc., and persuading them to make the purchase.
What part of the promotional mix is personal selling?
Sales promotions is when a business engages customers in conversation and relationship-building activities to ascertain their needs and secure a sale that might not have been made otherwise.
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you wrote eight call option contracts with a strike price of $37.50 at a call price of $1.10 per share. what is your net profit or loss on this investment if the price of the underlying stock is $40.30 per share on the option expiration date?
The net loss -$ 1306 on the investment if price underlying stock is $40.30 per share
Evaluating the profit or loss :Since I wrote the call option, if the call option buyer wants to buy the stock from me, I am obligated to sell the stock. The exercise price is $37.50 and the underlying share price is $40.30 per share.Since the brand price is higher than the strike price, a buyer can definitely come to buy stock from me at the strike price ($37.50) and profit by selling it at the market price ($40.30) in the market where it was sold. .
In this case, if you decide not to sell to the buyer, you must pay the call option buyer the difference between (market price and strike price). However, as the option seller, I receive a call price of $1.1 from the option buyer.Therefore, the net loss from this trade is $13.6. See below for calculations.
Strike Price 37.50
Market Price 40.30
Difference (Loss Per Contract) -2.80
Total Loss (Difference in
(Market Price & Strike Price)* Total No of Contract)…
i.e. (2.80×8) -22.40
Call Price to be Received by Me
(Call Price per contract * No of Contract Wrote)…
i.e. (1.1×8) 8.8
Net Loss -13.60
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which scenario describes the operation of a tariff? angola opens up trade with the world corn market and decides to maintain its previous market price. ireland taxes the import of potatoes in order to keep domestic farmers in business. consumers in turkey, who pay $4 per cup of tea, demand that the government open up trade with the world market because they know the world price is $2 per cup. norway becomes an exporter of fireworks after it opens up trade with the world market and realizes its market price is lower than the world price.
Norway becomes an exporter of fireworks after it opens up trade with the world market and realizes its market price is lower than the world price.
Norway, officially the kingdom of Norway,[a] is a Nordic us of a in Northern Europe, the mainland territory of which accommodates the western and northernmost portion of the Scandinavian Peninsula. The faraway Arctic island of Jan Mayen and the archipelago of Svalbard additionally form a part of Norway.[note 5] Bouvet Island, positioned within the Subantarctic, is a dependency of Norway; it additionally lays claims to the Antarctic territories of Peter I Island and Queen Maud Land. The capital and biggest metropolis in Norway is Oslo.
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which of the following does describe preparatory inspections? group of answer choices preparatory inspections make sure everything is ready for the next stage of construction preparatory inspections are never done by personnel employed by the contractor preparatory inspections are sometimes called preinspections preparatory inspections are designed to check progress
Personnel working for the contractor never performs preparatory inspections is the statement that describes the preparatory inspections.
What is Preparatory Inspections?Prepare defining aspects of the job. Work together with CQCSM. Verify that the plans have been authorized. On-site, approved materials and equipment have undergone inspection. Reminder: The Preparatory Meeting should include the status of the Preparatory Inspection. Make sure all plans, drawings, etc. are finished, authorized, and include any feedback. Before beginning the task, inspect submittals, materials, tools, supplies, workspaces, etc. document examination.
Inspection denotes a thorough analysis. Meeting consumer needs and avoiding the distribution of defective items are inspections' main Unquestionably, certain product flaws cannot be detected or corrected at the final stages of manufacture. An inspection is often a formal evaluation procedure or thorough examination. Measurements, tests, and gauges are used to assess an object's or activity's specific attributes during inspection in engineering processes.
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When preparing a Statement of Cash Flows using the indirect method, the Operating Activities section begins with Net Income. Why?
According to the indirect method , the cash flow statement starts out with net income on an accrual basis before adding and removing non-cash items to reconcile to real cash flows from operations.
There are two accounting procedures that can be utilised to create a cash flow statement, and the indirect method is one of them. By changing the operating part of the cash flow statement from the accrual method to the cash method of accounting, the indirect method converts changes in balance sheet line items.
The direct technique, which records real cash inflows and outflows made during the reporting period, is the other way to complete a cash flow statement. In practise, it is more typical for larger firms to employ the indirect way. Sometimes it is simpler to use the indirect way.
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kaizen costing is an alternative to target costing, both developed by japanese manufacturers. true false
kaizen Costing is the process of calculating the fixed and variable expenses related to each stage of production in order to determine the cost of producing goods and services.The correct answer is True .
A direct cost in financial accounting is any expense that is simply linked to a particular cost object, such as a department, project, or product. Expenses associated with raw materials, machinery, or equipment are some examples of direct costs.On the other hand, indirect costs are any expenses related to the management, administration, and upkeep of a business. Utility bills, office supplies, diesel, and other charges are some instances of indirect costs. Kaizen costing refers to requests for setting cost-reduction goals for the goods or services that a company is currently offering to customers.
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carol calculates that the total cost of serving 200 customers per day would be $1,600. what is the marginal cost of this increase in customers?
Serving 150 clients a day costs Carol's Steakhouse a total of $900. Carol wants to grow her firm but is worried about how it would affect her marginal cost.
What does growth have a marginal cost?Marginal cost is the increase in production costs by the increase in unit output. For instance, a company will pay $100 to make 100 pieces of a product at first. 100 more pieces of the product are produced for an additional $50.
We have received
C1 = $900\sQ1 = 259
Then c2 = $1600
Q2 = 200\sM = 1600-900/50\s= 14
Realistically, C1 = 900, C2 = 2400, Q1 = 150, Q2 = 50, 1500/50, or 30/14 times 100, or 214.
It exceeds it by 214 percent.
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mobius, incorporated, has a total debt ratio of .05. what is its debt-equity ratio? note: do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. what is its equity multiplier?\
The debt-to-equity ratio of Mobius incorporated is 0.5 and the equity multiplier is 1.5.
A firm's capital structure refers to the composition of debts versus equities in financing the firm's total assets. A firm's capital structure could be described using different financial ratios. For example, the debt-equity ratio is the ratio of the value of debt to the value of equities.
Debt-equity ratio = value of debt/value of equity
= value of debt / (value of an asset - the value of debt)
= 1 / (1 / debt-ratio - 1).
In this question, the debt-ratio is 0.5, applying the formula:
debt-equity ratio = 0.5 / (1 / 0.5 - 1) = 0.5 /(2 - 1) = 0.5
The equity multiplier is the ratio of the value of the asset to the value of equity. We can compute the equity multiplier as follows:
equity multiplier = value of asset/value of equity
= (value of debt + value of equity) / value of equity
= value of debt/value of equity + 1
= debt-equity ratio + 1
Since in the previous step we know that the debt-equity ratio is 0.5, it follows that the equity multiplier = 0.5 + 1 = 1.5
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if an officer smells marijuana and sees smoke pouring out of a car window, she may search the car without a warrant.
If an officer smells marijuana and sees smoke coming out of a car window, he can search the car without a warrant. This statement is correct.
If the police say your car smells of marijuana, you're in a tough spot. A court has ruled that the smell of contraband is likely to prompt officers to search. will immediately claim that they smell something, and sometimes even lie.
For example, if you are stopped while driving for a minor traffic violation, a stopped police officer cannot simply search your car for that reason. However, if the officer smells marijuana, they may search your person or vehicle for evidence of illegal drug use.
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