a firm has a capital structure with $19 million in equity and $77 million of debt. the cost of equity capital is 11.22% and the pretax cost of debt is 4.42%. if the marginal tax rate of the firm is 26.09% compute the weighted average cost of capital of the firm. enter your answer in percent and round to the nearest one-hundredth of a percent. do not include the percent sign (%
Answers
The weighted average cost of capital (WACC) of the firm is 6.47%.To calculate the weighted average cost of capital (WACC), we need to take into account the proportion of equity and debt in the firm's capital structure, as well as the respective costs of equity and debt.
The weight of equity is calculated by dividing the equity amount by the total capital (equity + debt):Weight of equity = Equity / (Equity + Debt) = 19 million / (19 million + 77 million) = 0.197 The weight of debt is calculated by dividing the debt amount by the total capital (equity + debt): Weight of debt = Debt / (Equity + Debt) = 77 million / (19 million + 77 million) = 0.803Calculate the cost of equity after tax. The cost of equity after tax is calculated by multiplying the cost of equity capital by (1 - marginal tax rate): of equity after tax = Cost of equity capital × (1 - Marginal tax rate) = 11.22% × (1 - 26.09%) = 0.0829938 Calculate the weighted average cost of capital (WACC).
To calculate the weighted average cost of capital (WACC) of the firm, we need to consider the proportions of equity and debt in the firm's capital structure, as well as the respective costs of equity and debt.First, we calculate the weight of equity by dividing the equity amount by the total capital (equity + debt). In this case, the equity amount is $19 million, and the debt amount is $77 million:Weight of equity = Equity / (Equity + Debt) = 19 million / (19 million + 77 million) = 0.197Next, we calculate the weight of debt by dividing the debt amount by the total capital (equity + debt):
Weight of debt = Debt / (Equity + Debt) = 77 million / (19 million + 77 million) = 0.803
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Related Questions
Sally owns a $1,000-par zero-coupon bond that has six years of remaining a. What is the expected price of the bond at the time of sale?
Answers
Answer:
$647.96
Explanation:
Sue the following formula to calculate the price of the bond at the time of sale
Price of Bond = Face value of the bond / ( 1 + Market interest rate )^numbers of years
Where
Face value of bond = $1,000
Market interest rate = 7.5%
Numbers of years = 6 years
placing values in the formula
Price of Bond = $1,000 / ( 1 + 7.5% )^6
Price of Bond = $647.96
Rachel wants to display jewelry in her store window in a way that will attract customers. She wants the display to complement and accentuate the jewelry. How can Rachel display the jewelry in a way that it makes it more appealing?
a. )Use different metallic trays for each item.
b. )Use a dark velvet textured background.
c. )Hang jewelry from the ceiling near the window.
d. )Use a light-colored plastic background
Answers
Rachel can use a dark velvet textured background to display the jewelry in a way that is more appealing. Option B is correct.
Using a dark velvet textured background can create a sense of luxury and elegance that complements and accentuates the jewelry. The soft texture of the velvet provides a contrast to the hard and shiny surfaces of the jewelry, making them stand out more. Additionally, the dark color of the velvet can help to enhance the brightness and sparkle of the jewelry.
In contrast, using a light-colored plastic background, as suggested in option d, may not be as effective. The plastic material may create a harsh reflection that distracts from the jewelry, and the light color may not provide enough contrast to make the jewelry stand out.
Hanging jewelry from the ceiling near the window, as suggested in option c, may also not be the best approach. This could make it difficult for customers to see the details of the jewelry and may be more suitable for displaying larger items such as clothing. Option B is correct.
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A company reported total stockholders' equity of $435,000 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019: Revenues: $930,000 Expenses: 495,000 Liabilities, on Dec 31. 2019: 216,000 What are the total assets of the company on December 31, 2019?
Answers
The total assets of the company on December 31, 2019, are $1,086,000.
To find the total assets of the company on December 31, 2019, we can use the accounting equation:
Total Assets = Total Liabilities + Stockholders' Equity
Given information:
Total stockholders' equity on Dec 31, 2018 = $435,000
Revenues for the year ended Dec 31, 2019 = $930,000
Expenses for the year ended Dec 31, 2019 = $495,000
Liabilities on Dec 31, 2019 = $216,000
To calculate the change in stockholders' equity for the year 2019, we need to consider the net income (revenues - expenses): Net Income = Revenues - Expenses
Net Income = $930,000 - $495,000
Net Income = $435,000
Now, let's calculate the stockholders' equity on December 31, 2019:
Stockholders' Equity on Dec 31, 2019 = Stockholders' Equity on Dec 31, 2018 + Net Income - Dividends
Stockholders' Equity on Dec 31, 2019 = $435,000 + $435,000 - Dividends
Since the information about dividends is not provided, we'll assume no dividends were paid. Therefore:
Stockholders' Equity on Dec 31, 2019 = $870,000
Finally, we can calculate the total assets:
Total Assets = Total Liabilities + Stockholders' Equity
Total Assets = $216,000 + $870,000
Total Assets = $1,086,000
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Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under
Answers
Answer:
the job that he works at
Explanation:
he quit
Herm is most likely liable to Nixie under the doctrine of promissory estoppel.
What are Organic Foods?The manner agricultural products are cultivated and processed is referred to as "organic." While rules differ from nation to nation, in the United States, organic crops must be grown without the use of synthetic fertilizers, pesticides, herbicides, or fertilizers, as well as without the use of bioengineered genes.
Produce can be referred to as organic if it was grown on soil without any prohibited substances applied for three years prior to harvest, according to certification. The majority of synthetic fertilizers and insecticides are prohibited substances.
Produce grown organically uses fewer pesticides. In conventional agriculture, synthetic fungicides, herbicides, and insecticides are frequently utilized, and their residues stay on (and in) the food we eat.
Hence, Herm is most likely liable to Nixie under the doctrine of promissory estoppel.
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Which technique of advertising shows that multiple consumers use a product to build consumer trust in the product?
Answers
Answer:
don doing it for 5 point give 100 then ill think abt it
Explanation:
Among those not working, the most recent job-search activity for 2.90 million happened less than two weeks ago, while 1.72 million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, and the remaining 10.99 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places.
Answers
Answer:
A. 24.05
B. 4.62
C. 66.99%
D. 19.21%
Explanation:
A). Calculation to determine the Laborland's total labor force
Using this formula
Total Labor Force = Employed + Unemployed
Let plug in the formula
Total Labor Force = (4.9+ 14.53) + (2.9 + 1.72)
Total Labor Force = 19.43 + 4.62
Total Labor Force = 24.05
Therefore the Laborland's total labor force is 24.05
(B). Calculation to determine the Laborland's labor force participation rate
Unemployed = 2.90 + 1.72
Unemployed = 4.62
Therefore the Laborland's labor force participation rate is 4.62
(C). Calculation to determine How many people are unemployed in Laborland
Using this formula
Labor force participation rate = Labor force / Total working age population
Let plug in the formula
Labor force participation rate= $24.05 / 35.9
Labor force participation rate= 66.99%
Therefore How many people are unemployed in Laborland will be 66.99%
(D). Calculation to determine Laborland's unemployment rate
Using this formula
Unemployment Rate = Unemployed / Labor force
Let plug in the formula
Unemployment Rate = 4.62 / 24.05
Unemployment Rate= 0.1921 * 100
Unemployment Rate= 19.21%
Therefore Laborland's unemployment rate is 19.21%
Personal selling can be part of ____ and involves direct spoken communication between sellers and customers
Process
Price
Promotion
Product
Answers
Personal selling can be part of Promotion and involves direct spoken communication between sellers and customers.
What is Personal selling?
Personal selling is a face-to-face sales method where a salesman uses their people abilities to convince a consumer to purchase a specific product. The salesperson tries to persuade the consumer that the product will only add value by emphasizing its different qualities.
Door-to-door sales are one of the typical forms of personal selling. To market and sell the goods/services, salespeople knock on the doors of potential clients. With their excellent interpersonal skills, they attempt to persuade people to purchase from them.
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what advice would you give executives at pluralsight if they wanted to grow their business.
Answers
Executives at Pluralsight should consider strategies such as investing in market research and data analysis to gain an understanding of current and potential customers. Additionally, focusing on expanding the company's portfolio of services and building a strong, reliable brand image would likely increase customer trust and loyalty.
Advice for Pluralsight Executives:
Moreover, marketing strategies such as personalization, influencer marketing, and content marketing could help drive growth. Lastly, they should seek to build strong partnerships with other companies, as this could open up new opportunities and help create better products.
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Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $40,000 and $60,000 respectively. Income summary has a credit balance of $20,000. What is Saturn's capital balance after closing income summary to capital?
Answers
Tomas and Saturn are partners who share income in a ratio of 3:1. The income summary has a credit balance of $20,000, which represents the total income that needs to be distributed to both partners based on their income sharing ratio.
Hi! I'd be happy to help with your question. First, we'll calculate the income shares for Tomas and Saturn. The sum of the ratio is 3+1=4. Tomas receives 3/4 of the income, while Saturn receives 1/4. Now, let's distribute the $20,000 income:Tomas' share: (3/4) * $20,000 = $15,000
Saturn's share: (1/4) * $20,000 = $5,000
To find Saturn's capital balance after closing the income summary to capital, add Saturn's share of the income to his initial capital balance:Initial capital balance: $60,000
Saturn's income share: $5,000
Saturn's capital balance after closing income summary to capital = $60,000 + $5,000 = $65,000
So, Saturn's capital balance after closing the income summary to capital is $65,000.
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first come first serve
Answers
Answer:
hiiii
thanks for the free points
Answer:
hi hello
Explanation:
:) :) :):) :) :) :)
although the perpetual inventory system updates accounting records after each sale, a physical count is necessary at year-end to address issues such as ________ and
Answers
Even though the records of stock are updated frequently under the Perpetual Inventory approach, a physical count is still necessary to address C : customer theft and spoilage.
The Perpetual Inventory System ensures that there are lower issues with stock accounting because stock changes are recorded after every sale.
A physical count is still needed however to ensure that the stock that is recorded is the same as the actual stock. It might not be the same due to:
Customer thefts e.g. shoplifting Spoilage - some of the stock may have spoiled and become unusable.In conclusion, physical verification of stock is important to find instances of spoilage and theft.
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Options for this question include:
A : management performance; inventory records systems.
B : failing to meet sales goals; employee discounts.
C : customer theft; spoilage.
D : management performance; employee discounts.
Why are carpenters considered generalists?
O They are able to work independently.
O They supervise other workers on the operations team.
O They need an associate's degree for licensure.
O They are versatile and perform a variety of tasks.
Answers
Answer:
I feel like it's the last one but I could be wrong plz let me know
Explanation:
Answer:
They are versatile and perform a variety of tasks.
Explanation:
_____ is the amount by which the predicted value differs from the observed value of the time series variable.
a. smoothing constant
b. mean forecast error
c. mean absolute error
d. forecast error
Answers
d. forecast error. The forecast error is the amount by which the predicted value differs from the observed value of the time series variable. It is used to evaluate the accuracy of a forecasting model.
Forecast error is a measure of the accuracy of a forecasting model or method. It quantifies the discrepancy between the predicted values and the actual observed values of a time series variable. Forecast error is calculated by taking the difference between the predicted value and the corresponding observed value. It provides insight into the level of deviation or inaccuracy in the forecasting process. There are several commonly used measures of forecast error, including mean absolute error (MAE), root mean squared error (RMSE), mean absolute percentage error (MAPE), and others. These measures provide different ways to summarize and evaluate the overall performance of a forecasting model.
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Forty-nine items are randomly selected from a population of 500 items. The sample mean is 40 and the sample standard deviation 9. (Use t Distribution Table & z Distribution Table. )
Answers
The confidence interval for the population mean is between 36.551 and 43.449 with a 99% confidence level. This means that if we repeated this sampling process many times, we can expect the true population means to be within this range in 99% of cases.
To develop a 99% confidence interval for the population mean, we can use the t-distribution since the sample size is less than 30 and the population standard deviation is unknown. The formula for the confidence interval is:
Confidence interval = sample mean ± (t-value x standard error)
where the standard error is equal to the sample standard deviation divided by the square root of the sample size:
Standard error = sample standard deviation / sqrt(sample size)
First, we can calculate the t-value using the t-distribution table with a degree of freedom of 48 (sample size minus 1) and a 99% confidence level. The t-value is approximately 2.682.
Next, we can calculate the standard error:
Standard error = 9 / sqrt(49) = 1.286
Then, we can calculate the confidence interval:
Confidence interval = 40 ± (2.682 x 1.286) = (36.551, 43.449)
The answer provided in the question is correct but it should be rounded to 3 decimal places as 36.552 and 43.448.
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Complete question:
Forty-nine items are randomly selected from a population of 500 items. The sample mean is 40 and the sample standard deviation is 9. (Use t Distribution Table & z Distribution Table.) Develop a 99% confidence interval for the population means. (Round your final answers to 3 decimal places.) The answer is complete but not entirely correct. The confidence interval is between 36.552 and 43.448
why will the wages for apple pickers increase?
Answers
Answer:An increase in the demand for apples increases the demand for the labor force also increasing the prices for the apples. This results in an increase in wage for apple pickers due to work increment.
Explanation:pls braliant my answer
I have a franchise project please help!!
Paragraph/Slide One: Why would choose to Franchise (positives) the organization you chose?
Two: What would the cons (negatives) be? (5-6 complete sentences)
Three: What would you pay your employees and why? (5-6 complete sentences)
Fourth slide: What would the culture be of your Franchise? (5-6 complete sentences)
Fifth slide: As an investor, why would you choose to Franchise this place? (5-6 complete sentences)
Answers
Franchise project is an example of business organization overtaking in various countries and are in a demand because of chain network.
They always have high profitability ratio as they are under chain network management where every single person is responsible for its growth and employees. They have less negatives and more positives.
Franchise project is important to set up various brand market in other countries that enable ease of growth and expansion of the business in the parts of the investor business.
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payment history and total debt, together, comprise 65% of your score. why do you think it’s so high?
Answers
It is considered as high because It demonstrates to potential lenders that you have a record of success in repaying debt that you have borrowed.
What is payment history?A borrower's payment history is a record of their credit and other debt payments. Payment history accounts for 35% of a FICO Score computation and is recognized as highly influential under the VantageScore model as the most important component when determining a consumer's credit score.
It aids in ensuring the timely payments of all bills. By setting up autopay, alerts, and/or calendar reminders can help you achieve this. Always set autopay to at least a minimum amount due when you set it up. This ensures that your account is up to date and that good information is provided to credit reporting agencies.
Therefore, these are reasons why payment history and total debt seem a high scores.
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What are two things a good investment might do?
Answers
Answer: With a good investment there should be very little chance of losing the total amount invested. Good investment ideas will hold their value or increase in value for a long time. The way any investment product is structured and regulated should offer investors protection.
Explanation:
Good investment must contain
Long term planPast records The fund where you invest must have good past records of benifit.If it has Andy fraud records of misleading money you shouldn't invest thereAlso the growth rate must be measured for long term interest and benifitsAn NOL has the potential to lower income and reduce taxes for the taxpayer
Answers
Answer:
The correct response is "for the carryover or carryforward year".
Explanation:
NOL usually happens that whenever a taxpayer's corporate taxable income exceeds his corporation yearly revenue. The whole NOL could be utilized to back split from several other taxable incomes, which have become perhaps throughout the future, in other words, managed to carry forward. Throughout the current environment, and there'll be revenue, NOL would be adapted and the tax burden would be whittled down either by NOL proportion.Which investment has the least amount of default risk?
A)
junk bonds
B)
common stocks
c)
corporate bonds
D)
US Treasury bonds
Answers
Answer:
D....U.S. Treasury Bonds!
If a 25 percent change in price results in a 40 percent change in quantity supplied, then the price elasticity of supply is about a. 0.63, and supply is elastic. b. 0.63, and supply is inelastic. c. 1.60, and supply is elastic. d. 1.60, and supply is inelastic.
Answers
The correct answer is c. 1.60, and supply is elastic.
The price elasticity of supply refers to the sensitivity of producers to a change in the price of a commodity.
The elasticity of supply is the degree of response of the quantity supplied of a commodity to a change in its price. Price elasticity of supply (PES) is the degree of responsiveness of the amount of a product provided to a change in its price.
The price elasticity of supply is calculated as:% a change in quantity supplied / % change in price a 25% change in price results in a 40% change in quantity supplied, then the price elasticity of supply:
PES = 40/25 = 1.6
The price elasticity of supply is greater than 1, indicating that supply is elastic.
A PES of more than 1 indicates that the percent change in quantity supplied is greater than the percent change in price, resulting in a more significant impact on the quantity supplied than on the price.
Therefore, if a 25% increase in price causes a 40% increase in quantity supplied, the supply is elastic.
Therefore, the correct option is d) 1.60, and the supply is inelastic.
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Louis, a high school senior, is known by his friends for generally having good luck. Everything falls his way, including an academic scholarship and a great part-time job delivering pizzas. He’s saving for a car to drive at college. Some guys at school heard about a group out west pooling their money for raffle tickets and winning big. They’ve now started doing that for weeks, with no results. They ask Louis to join them. Five bucks a week for a huge payday. He’s tempted. You are his friend; talk him out of it.
Answers
The raffle tickets in the lottery are essentially a way to "tax" the poor and educate the rich. Gambling is extremely addictive, and the odds of losing are significantly higher than the odds of winning.
What is gambling?gambling is betting or staking something of value with an awareness of risk and hope of profit on the outcome of a game, contest, or other uncertain event. The outcome may be determined by chance, accident, or the bettor's miscalculation may result in an unexpected outcome. The term "gambling" refers to games of chance in which small bets are placed with the possibility of receiving large payouts from time to time. Gambling can take many forms, including playing poker, betting on horse races, buying lottery tickets, and gambling with slot machines.
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What are some of the payoffs companies receive when offering child care benefits to employees?
Answers
Answer:
When an employer provides child care for its employees, both will benefit. The benefits that employers obtain are generally:
Child care is extremely important for working parents and it might be the difference between taking or staying on a job or working somewhere else. Companies that provide child care have lower employee churn, specially for working parents. Employees tend to be more productive since they are happier and have less things to worry about (specially child security and child care costs).Employees feel better about their employees and they tend to believe that the employer actually cares for them and their families. I'm sure there are many more, so etc.The class will be divided into five groups. With the teacher's guide, each group should suggest a business that they want to put up. Each group should then justify their choice of business. Each group will discuss among the members the environment that should be studied in terms of the location they decided to choose. Based on the environmental analysis, the group members should identify all the factor that need to be studied in the specific environment/location.
Answers
Each group will suggest a business idea and justify their choice based on their interests, market demand, and potential profitability. They will then discuss the specific location for their business and conduct an environmental analysis to identify factors that need to be studied.
In the first paragraph, each group can briefly mention the type of business they want to put up, such as a restaurant, tech startup, clothing boutique, fitness center, or any other business idea that interests them. They should provide a concise justification for their choice, highlighting factors like market demand, personal passion, unique selling proposition, or potential profitability.
In the second paragraph, the group members will discuss the specific location for their business and conduct an environmental analysis. They need to identify and examine various factors that can influence the success of their business in that particular location. This analysis can include factors such as local competition, target market demographics, economic conditions, regulatory environment, infrastructure, availability of resources, cultural considerations, and any other relevant factors. By studying these environmental factors, the group can gain insights into the opportunities, challenges, and potential risks associated with their chosen location.
Overall, the aim is for each group to select a business idea that aligns with their interests and has potential in the market. They should then analyze the specific location's environmental factors to make informed decisions and develop strategies that maximize their chances of success. This exercise helps students understand the importance of market research, environmental analysis, and strategic planning in business development.
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how does scarcity affect the choices a business makes?
Answers
Scarcity is a critical factor in the decision-making process of businesses.
It is an important consideration in terms of resource allocation, limited investment opportunities, and the optimization of available resources.
As resources become scarce, businesses must evaluate their choices and decide which options to pursue in order to maximize their profits. This may involve cutting back on certain expenses, such as research and development, or reallocating resources to areas where they can be more efficiently utilized.
In any case, the decisions made by a business in response to scarcity can have a major impact on its success or failure.
By understanding the implications of scarcity and how it can affect their decisions, businesses can make better-informed choices and increase their chances of achieving their goals.
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Answer:
If there are less economic resources, businesses may need to revise their plans for developing a new product.
Explanation:
just took the test
on january 1, 2025, blossom corporation issued $810,000, 7%, 10-year bonds at face value. interest is payable annually on january 1. blossom corporation has a calandar year-end. prepare all entries related to the bond issue for 2025
Answers
The official record of every company activity is a journal entry. A transaction is, in the broadest sense, any financial activity that has an impact on the firm.
Date Account Titles and Explanation Debit Credit
2020
Jan. 1
Cash $730,000
Bonds Payable $730,000
(To record the issue of bonds payable)
Dec. 31
Interest Expense $43,800 ($730,000 x 6%)
Interest Payable $43,800
(To record interest expenses)
The official record of every company activity is a journal entry. A transaction is, in the broadest sense, any financial activity that has an impact on the firm.
They encompass all exchanges involving the movement of money, including interest payments, depreciation, costs, and payroll. They encompass more than just the exchange of goods and services. Instead of being processed automatically like invoices or cash receipts are, general journal entries are manually entered into the general ledger.
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gdp 6000 gross investment 800 net investment 200 consumption 4000 government purchases of goods and services 1100 government budget surplus 30 what is ndp? answer: 5400
Answers
Net Domestic Product (NDP) is calculated as the Gross Domestic Product (GDP) minus depreciation (also known as capital consumption allowance). The NDP is equal to 1000.
(NDP) is computed by deducting from the gross domestic product (GDP) the value of depreciation of the country's capital assets, such as machinery, houses, and cars (GDP). The NDP also considers additional elements including asset obsolescence and total destruction.
NDP can be calculated as follows:NDP = GDP - Depreciation
Given the information in the question:
GDP = 6000
Depreciation = 6000 - 800 + 200 = 5000
Substituting these values into the formula, we get:
NDP = 6000 - 5000 = 1000
So the NDP is equal to 1000.
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Which of the following is a database system that has been designed and developed specifically for one operation?
representational
relational
proprietary
privatized
Answers
Imagine an economy with production function Y = F(K) = and 400 units of capital. If the fraction of output invested in new capital is γ = 0.2 and the depreciation rate is δ = 0.05, what is the steady-state amount of capital?
64 units
16 units
225 units
100 units
Answers
The capital accumulation equation is given by: Investment = Depreciation + Change in Capital. The steady-state amount of capital in this economy is 400 units.
To find the steady-state amount of capital in the given economy, we need to use the capital accumulation equation, which takes into account investment, depreciation, and the production function.
In this case, the investment is a fraction γ of the output, and the depreciation is a fraction δ of the existing capital. The change in capital is the difference between investment and depreciation.
γ = 0.2 (fraction of output invested in new capital)
δ = 0.05 (depreciation rate)
K = 400 units of capital
First, let's calculate the investment:
Investment = γ * Output
Since the production function is not provided in the question, we cannot determine the exact value of output. However, we can proceed by assuming a simplified production function.
Let's assume a linear production function: Y = aK, where 'a' is a constant. This simplification does not affect the calculation of the steady-state capital.
Investment = γ * Output
= γ * (aK)
Next, let's calculate the depreciation:
Depreciation = δ * Existing Capital
= δ * K
Now, we can calculate the change in capital:
Change in Capital = Investment - Depreciation
= γ * (aK) - δ * K
In the steady state, the change in capital is zero. Therefore, we have:
γ * (aK) - δ * K = 0
Simplifying the equation:
γ * aK = δ * K
Since K is a common factor on both sides, we can cancel it out:
γ * a = δ
Solving for a:
a = δ / γ
a = 0.05 / 0.2
a = 0.25
Now, we can substitute the value of 'a' into the investment equation:
Investment = γ * (aK)
= 0.2 * (0.25 * K)
= 0.05 * K
Equating the investment to the depreciation:
0.05 * K = δ * K
0.05 * K = 0.05 * 400 (Substituting the given value of K)
Simplifying the equation:
0.05 * K = 20
Solving for K:
K = 20 / 0.05
K = 400
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The history of bananas
Using at least two terms from the unit, summarize the United States’ connection to the history of bananas, as documented in this TED talk.
Answers
There was a U.S corporation called El Pupo that specialized in trafficking bananas. Bananas fist officially reached America in the early 1500’s. By the end of the 1800’s, bananas were a big hit in the U.S.
How was bananas shoot introduced to the US for cultivation?Spanish explorers brought bananas to the Americas in the 1500s. The first banana shoot is thought to have been planted in the Caribbean islands in 1516. Bananas did not arrive in the United States until the 1800s, when sailors brought banana shoots back from the Caribbean.
Because fruit companies in the United States wanted to grow their own bananas, they bribed government officials to gain access to various lands. Rainforests were cleared, plantations were constructed, and the business grew from there.
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