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NM

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Technical Engineering presently leases a copying machine on a monthly basis. The lease agreement requires a fixed fee each month in addition to a charge per copy. Technical Engineering made 2400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3500 copies. Determine Technical Engineering's variable cost per copy.

A) $0.06
B) $0.04
C) $0.03
D) $0.01

On Jun 30, 2024


C
NM

Answered

A firm has common and preferred stock outstanding, both of which just paid a dividend of $3 per share. Which do you think will have a higher share price and why? If the firm also has an issue of non-callable debentures outstanding, which do you think investors will require a higher return on, the debentures or the shares of common stock? Explain.

On Jun 30, 2024


This question sets up some of the material addressed later in the chapter. First, the share of common stock will be worth more since dividends will typically be expected to increase while they will not on the preferred shares. The investor-required return will be higher for the stock since bonds have promised payments and preference over stock in liquidation. The astute student will make the connection that bondholder returns are effectively limited while stockholder returns are effectively not.
NM

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The use of government spending and taxation for the purpose of stabilizing the economy is called

A) budget policy.
B) monetary policy.
C) fiscal policy.
D) trade policy.

On Jun 26, 2024


C
NM

Answered

List two reasons why the Fed can not control the exact size of the money supply.

On May 31, 2024


1) The Fed can not control how much money households deposit at banks.
2) The Fed does not control how much banks lend.
These two facts mean the Fed does not have perfect precision in controlling the money supply.
NM

Answered

FOB ________ means ownership of goods transfers to the buyer when the goods arrive at the buyer's place of business.The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit.

On May 27, 2024


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