Chris enjoys economies of scope. Economies of scope occur when it is less costly to produce a range of products together than it would be to produce them separately.
In this case, Chris is able to produce both cheese and milk more efficiently together than he would be able to produce them separately. This is because the resources required to produce both products, such as the cows and the land, can be used more effectively when producing multiple products, resulting in lower costs and higher efficiency.
Economies of scope refer to the cost advantages that arise when a company produces multiple products or services together rather than separately. By producing multiple products together, a company can take advantage of shared resources, knowledge, and capabilities, which can result in lower costs and increased efficiency.
In Chris's case, he is able to produce both cheese and milk using the same cows, which allows him to take advantage of economies of scope. For example, the cows can be milked and then the milk can be used to make cheese, which means that Chris doesn't need to invest in separate resources for each product. Additionally, by producing multiple products, Chris may be able to achieve higher sales volumes, which can further reduce his costs.
Learn more about economies here:
https://brainly.com/question/30131108
#SPJ11
Auditors may choose not to confirm accounts payable because: Group of answer choices Confirmation obtains evidence identical to that obtained by cutoff tests. Other reliable external evidence to support the balances is likely to be available. A reading of the corporate minutes reveals that confirmation is unnecessary. The balances due will have changed between the year-end and the date of confirmation.
Auditors may choose not to confirm accounts payable because confirmation obtains evidence identical to that obtained by cutoff tests.
Cutoff tests are procedures that allow auditors to verify that transactions recorded at the end of the accounting period are properly included in the correct period. If auditors have already performed these tests and obtained reliable external evidence to support the balances, they may determine that confirmation is unnecessary. Additionally, if the balances due are likely to have changed between the year-end and the date of confirmation, auditors may choose not to confirm accounts payable as the information may no longer be accurate.
To know more about Auditors visit:
https://brainly.com/question/30227005
#SPJ11
The purpose of the first call to a sales prospect by a salesperson is to understand the prospect's selling situation. True False
The correct answer is True. The purpose of the first call to a sales prospect by a salesperson is to understand the prospect's selling situation. This is crucial in developing a successful sales strategy that will ultimately lead to closing the deal.
By understanding the prospect's current situation, the salesperson can tailor their pitch to the prospect's specific needs and pain points. This will make the sales pitch more compelling and increase the likelihood of a successful sale. Additionally, understanding the prospect's selling situation allows the salesperson to identify any potential obstacles or objections that may arise and prepare to address them. Overall, the first call to a sales prospect sets the foundation for a successful sales process by providing valuable information that can be used to tailor the sales pitch and overcome any potential obstacles.
To know more about sales strategy
https://brainly.com/question/25640993
#SPJ11
According to ________ the amount of effort employees devote to a task depends on their expectations of the outcome.
According to Expectancy Theory, the amount of effort employees put into a task is determined by their expectations of the outcome.
What's expectancy theory?This theory suggests that employees are more likely to exert high levels of effort if they believe that their efforts will lead to a desired outcome, such as a promotion or a bonus.
However, if they feel that their efforts will not be rewarded, they may be less motivated to put in the same level of effort. In other words, employees are motivated by their perception of the link between effort and reward.
To increase motivation, employers can work to ensure that employees understand the connection between effort and outcomes, and that they feel that their efforts will be recognized and rewarded appropriately.
Learn more about expectancy theory at
https://brainly.com/question/30543289
#SPJ11
___ that are either accepted or rejected become the primary conclusions of a marketing research study.
The primary conclusions of a marketing research study are accepted or rejected hypotheses.
Marketing research is a systematic process of collecting, analyzing, and interpreting data to provide information that can guide marketing decisions. One of the main objectives of marketing research is to test hypotheses that have been developed based on the research objectives. The hypotheses are statements that make assumptions about the relationships between variables. After collecting and analyzing data, the hypotheses are either accepted or rejected based on statistical tests. The accepted or rejected hypotheses become the primary conclusions of the study and provide the basis for making informed marketing decisions. It is important to note that the conclusions of a marketing research study are only as valid as the data and methods used to collect and analyze the data. Therefore, it is critical to ensure the quality and accuracy of the data and methods to ensure reliable and valid conclusions.
Learn more about hypotheses here
https://brainly.com/question/11555274
#SPJ11
A customer transformer has 12 residential customers connected to it. Connected load is 20 kW per house, DF is 0.6, and diversity factor is 1.15. Find the diversified demand of the group of 12 houses on the transformer.
The diversified demand of the group of 12 houses on the transformer is 276 kW.
To find the diversified demand of the group of 12 houses on the transformer, we can use the following formula:
Diversified demand = Total connected load x Diversity factor
The total connected load of the 12 houses is:
20 kW per house x 12 houses = 240 kW
The diversified factor is given as 1.15.
Therefore, the diversified demand of the group of 12 houses on the transformer is:
Diversified demand = 240 kW x 1.15 = 276 kW
So, the diversified demand of the group of 12 houses on the transformer is 276 kW.
To learn more about transformer here
https://brainly.com/question/29665451
#SPJ4
The coefficient of variation is Question 9 options: a standardized measure of dispersion about the expected value, that shows the risk per unit of return. A non-standardized measure of dispersion about the expected value, that shows the risk per unit of return. A standardized measure of earnings about the expected value, that shows the risk per unit of return. A standardized measure of dispersion about the expected value, that shows the total risk.
The coefficient of variation (CV) is a standardized measure of dispersion about the expected value that shows the risk per unit of return. CV is calculated by dividing the standard deviation by the mean, allowing it to effectively measure the relative volatility of an investment or portfolio.
By standardizing the measure of dispersion, the CV facilitates comparisons between different investments or portfolios with varying expected returns, as it accounts for the level of risk involved in achieving these returns.
As a result, CV is a valuable tool for investors and financial analysts when assessing and comparing investment options, helping them make informed decisions on where to allocate their resources to achieve the desired balance between risk and reward.
To know more about coefficient of variation visit:
https://brainly.com/question/13293164
#SPJ11
Diversification refers to: Group of answer choices Allocating your money among stocks, bonds, and commodities in a strategic way to anticipate changes in the markets. Spreading your money among a small number of investments in hopes of maximizing the returns of those with high returns. Spreading your money among various investments to reduce the impact of losses on a few investments. Allocating your money among stocks and bonds from firms operating in a single industry.
Diversification refers to spreading your money among various investments to reduce the impact of losses on a few investments. It is a strategy that investors use to manage risk and protect their investments against potential losses. By diversifying your portfolio, you can lower the risk of losing money due to market fluctuations or unforeseen events that may affect a single investment.
The concept of diversification is based on the idea that different investments have different levels of risk and return potential. By investing in a range of assets such as stocks, bonds, and commodities, you can minimize the overall risk of your portfolio while potentially maximizing your returns. This approach can be particularly effective for those who are risk-averse or have a low tolerance for risk.
Diversification also allows investors to take advantage of opportunities in different markets and sectors. By investing in different industries or geographic regions, investors can tap into new growth opportunities and potentially benefit from higher returns. However, it is important to note that diversification does not guarantee a profit or protect against all losses. Investors should always consult with a financial advisor before making any investment decisions.
TO KNOW MORE ABOUT Diversification refers to spreading CLICK THIS LINK -
brainly.com/question/29441674
#SPJ11
When the wage rate increases, the opportunity cost of leisure time Choose one: A. is not impacted. B. increases. C. decreases.
When the wage rate increases, the opportunity cost of leisure time increases.(B)
When the wage rate increases, the value of each hour spent working rises, making leisure time more expensive in terms of forgone income. In other words, the opportunity cost of leisure time, which is the income you could have earned by working instead of taking leisure, increases.
This higher opportunity cost may encourage people to work more hours, since they have more to gain financially from working than from taking leisure time.
On the other hand, some people may choose to maintain or even reduce their work hours, since they can now earn the same income in less time. Ultimately, the choice depends on an individual's preferences and priorities, but the overall effect is that an increased wage rate leads to a higher opportunity cost for leisure time.(B)
To know more about opportunity cost click on below link:
https://brainly.com/question/24319061#
#SPJ11
Stockholders' Equity (Net Worth) is affected by all of the following EXCEPT: A declaration of a cash dividend B the purchase of Treasury stock C the issuance of new stock D declaration of a stock dividend
Stockholders' Equity (Net Worth) is affected by all of the following except A. declaration of a cash dividend
Stockholders' equity, also known as net worth or shareholder's equity, is the portion of a company's balance sheet that represents the residual value of assets after deducting liabilities. It is calculated as the difference between a company's total assets and its total liabilities.
There are several factors that can affect a company's stockholders' equity, including the declaration of a cash dividend, the purchase of Treasury stock, the issuance of new stock, and the declaration of a stock dividend.
When a company declares a cash dividend, it is distributing a portion of its profits to its shareholders. This distribution reduces the company's retained earnings, which is a component of stockholders' equity. Therefore, the declaration of a cash dividend decreases the stockholders' equity.
On the other hand, the purchase of Treasury stock by a company reduces the total number of outstanding shares in the market. This, in turn, increases the value of each share, but it does not affect the total amount of stockholders' equity.
The issuance of new stock, on the other hand, increases the number of outstanding shares, which can dilute the value of existing shares. However, it also increases the total amount of stockholders' equity as the company receives additional funds from the sale of the new shares.
Lastly, the declaration of a stock dividend involves distributing additional shares to existing shareholders. This increases the number of outstanding shares but does not affect the total amount of stockholders' equity. Instead, it redistributes the equity among existing shareholders.
In summary, the declaration of a cash dividend decreases stockholders' equity, the purchase of Treasury stock does not affect stockholders' equity, the issuance of the new stock increases stockholders' equity, and the declaration of a stock dividend redistributes stockholders' equity among existing shareholders.
Therefore the correct option is A. declaration of a cash dividend
Learn more about Stockholders' Equity: https://brainly.com/question/14032844
#SPJ11
What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?
Transferring a firm's activities that have traditionally been internal to external suppliers is known as outsourcing. This process involves hiring third-party vendors to perform tasks that were previously carried out by the company's own employees.
Outsourcing can take various forms such as offshoring, nearshoring, or onshoring. Offshoring refers to moving operations to a foreign country, nearshoring refers to relocating to a nearby country, and onshoring refers to outsourcing within the same country. The primary reason for outsourcing is cost reduction. By outsourcing, companies can benefit from lower labor costs, reduced overhead expenses, and improved efficiency.
Outsourcing can also help firms to focus on their core competencies. By outsourcing non-core activities, businesses can redirect their resources towards developing their core strengths and increasing their competitiveness. This can help companies to become more innovative, flexible, and responsive to changing market demands. However, outsourcing also has its challenges.
Firms must carefully select vendors that can provide quality services at reasonable prices, manage risks such as data security, and ensure that their business continuity is not disrupted. Therefore, firms must develop a sound outsourcing strategy that balances cost reduction with quality and risk management.
For more such questions on suppliers
https://brainly.com/question/13836623
#SPJ11
A policy maker has argued for higher taxes on gasoline to reduce the negative externalities associated with driving. This policy will lead to a relatively ______ reduction in driving if demand is ______.
If a policy maker argues for higher taxes on gasoline to reduce the negative externalities associated with driving, the policy will lead to a relatively small reduction in driving if demand is inelastic. Inelastic demand means that changes in the price of gasoline have a relatively small effect on the quantity of gasoline demanded.
In this scenario, even if the price of gasoline increases due to higher taxes, people may still continue to drive because they need to commute to work, school or other important activities, and there are few alternatives to driving. Inelastic demand also means that the increase in tax revenue from the higher gasoline taxes will be relatively large since people will continue to buy gasoline despite the higher prices.
On the other hand, if demand for gasoline is elastic, the same increase in gasoline taxes will lead to a larger reduction in driving. Elastic demand means that changes in the price of gasoline have a relatively large effect on the quantity of gasoline demanded. In this scenario, people may choose to reduce their driving or switch to more fuel-efficient vehicles or alternative modes of transportation in response to the higher gasoline prices
Therefore, the effectiveness of higher gasoline taxes as a policy tool to reduce driving and negative externalities depends on the elasticity of demand for gasoline.
Learn more about gasoline here:
https://brainly.com/question/29991915
#SPJ11
Managers at XYZ Inc. have recognized declining sales on their ABC model product and must make a decision about what to do. Their next step is to ______.
After recognizing declining sales on a specific product, the next step for managers at XYZ Inc. is to conduct a thorough analysis to determine the underlying cause of the sales decline.
This analysis may include a review of sales data, customer feedback, market trends, competitor activity, and other relevant factors. Based on this analysis, managers can then consider various options to address the decline in sales. Some potential options may include:
1. Modifying the product: Managers may consider making changes to the product to make it more appealing to customers. This could involve changing its features, design, or packaging.
2. Adjusting the price: Managers may consider reducing the price of the product to make it more competitive and attractive to customers.
3. Increasing marketing efforts: Managers may consider increasing their marketing efforts to promote the product more effectively and reach a wider audience.
4. Discontinuing the product: If the analysis reveals that the product is no longer viable in the market, managers may consider discontinuing it and focusing on other products with higher potential for success.
Overall, the next step for managers at XYZ Inc. is to conduct a careful analysis of the situation and consider all possible options to address the decline in sales and ensure the long-term success of the company.
To know more about declining sales refer here
https://brainly.com/question/28232312#
#SPJ11
As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline. This is known as the law of decreasing product. diminishing average product. diminishing total product. diminishing marginal product.
The correct term for the scenario you described is the law of diminishing marginal product. It states that as more and more units of a variable factor of production are added to fixed factors of production, the marginal product (or the additional output produced by each additional unit of the variable factor) will eventually decline.
This happens because the fixed factors of production, such as land or capital, cannot be increased in the short run, causing a point of diminishing returns to be reached. This results in a decrease in the average product and the total product as well.
when successive equal increases in a variable factor of production are added to fixed factors of production, and there is a point beyond which the extra product attributed to each additional unit of the variable factor of production declines. This concept is known as the law of diminishing marginal product.
To know more about marginal product, visit:
https://brainly.com/question/29652804
#SPJ11
A project is expected to generate annual revenues of $118,500, with variable costs of $75,100, and fixed costs of $15,600. The annual depreciation is $3,900 and the tax rate is 21 percent. What is the annual operating cash flow
The annual depreciation is $3,900 and the tax rate is 21 percent. The annual operating cash flow is $24,639.
To calculate the annual operating cash flow, we need to subtract the total variable and fixed costs, depreciation, and taxes from the annual revenue.
Annual operating revenue = $118,500
Total variable costs = $75,100
Fixed costs = $15,600
Depreciation = $3,900
Total operating expenses = Total variable costs + Fixed costs + Depreciation
Total operating expenses = $75,100 + $15,600 + $3,900
Total operating expenses = $94,600
Taxable income = Annual operating revenue - Total operating expenses
Taxable income = $118,500 - $94,600
Taxable income = $23,900
Taxes = Taxable income x Tax rate
Taxes = $23,900 x 0.21
Taxes = $5,019
Annual operating cash flow = Annual operating revenue - Total operating expenses - Taxes
Annual operating cash flow = $118,500 - $94,600 - $5,019
Annual operating cash flow = $24,639
Learn more about depreciation here
https://brainly.com/question/1203926
#SPJ11
Which of the following is NOT a leadership area that is included in the teachable point of view of leadership training?
a. Ideas
b. Values
c. Energy
d. Charisma
Charisma is NOT a leadership area that is included in the teachable point of view of leadership training.
The teachable point of view of leadership training typically includes areas that can be learned and developed, rather than relying solely on innate qualities or traits such as charisma. The three areas included in this approach are often described as "the leadership tripod" and include:
a. Ideas - the ability to develop and communicate a compelling vision or strategy
b. Values - the ability to establish and uphold ethical and moral principles
c. Energy - the ability to motivate and inspire others through personal drive and enthusiasm
Learn more about communicate here:
https://brainly.com/question/22558440
#SPJ11
In the late twentieth century, U.S. companies began using labor outside the company to provide certain services. What was this business practice called
In the late twentieth century, U.S. companies began using labor outside the company to provide certain services. This business practice is called outsourcing.
The business practice of outsourcing refers to the use of labor outside a company to provide certain services. In the late twentieth century, many U.S. companies began adopting this practice as a way to reduce costs and improve efficiency. Outsourcing involves hiring external companies or contractors to perform tasks that were traditionally done in-house, such as customer service, manufacturing, and software development.
Outsourcing gained popularity in the 1980s and 1990s, as technological advancements made it easier to connect with service providers around the world. The availability of cheaper labor in countries such as India and China also made outsourcing an attractive option for many companies. Outsourcing has become particularly prevalent in the information technology and business process outsourcing industries.
While outsourcing can provide cost savings and other benefits for companies, it has also been criticized for its impact on job security, as it can result in the loss of domestic jobs. Additionally, outsourcing can sometimes result in lower quality services and communication challenges between the company and the external service provider. Despite these concerns, outsourcing remains a popular business practice and continues to evolve as technology and globalization continue to shape the business landscape.
for more such question on outsourcing
https://brainly.com/question/12101789
#SPJ11
A credit card issued by a financial institution and secured by funds deposited by the cardholder is a
A credit card issued by a financial institution and secured by funds deposited by the cardholder is a secured credit card.
A secured credit card requires the cardholder to provide a cash deposit as collateral, which is then used as the credit limit for the card. This provides the issuing financial institution with a level of security in case the cardholder is unable to repay the debt. Secured credit cards are often used by people who have poor credit or no credit history, as they can help them build or improve their credit score by demonstrating responsible use of credit.
To know more about credit card, here
brainly.com/question/31598744
#SPJ4
A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is
The answer is that the desired reserve ratio is 5% ($200/$4,000).
The desired reserve ratio is the percentage of deposits that a bank wants to hold in reserve in order to meet the demands of its customers for withdrawals and other transactions. In this case, the bank has $200 of reserves and $4,000 of deposits, which means that it is holding 5% of its deposits in reserve ($200/$4,000 = 0.05 or 5%). This is the desired reserve ratio for the bank, as it is meeting its reserve requirements without having any excess reserves.
The desired reserve ratio is an important concept in banking, as it helps banks to maintain their solvency and liquidity. Banks are required by law to hold a certain percentage of their deposits in reserve, in order to be able to meet the demands of their customers for withdrawals and other transactions. The desired reserve ratio is the percentage of deposits that a bank wants to hold in reserve, over and above the required reserve ratio.
In the case of the bank in question, it has $200 of reserves and $4,000 of deposits. This means that it is holding 5% of its deposits in reserve, which is the desired reserve ratio for the bank. This ratio is sufficient to meet the bank's reserve requirements, without having any excess reserves.
Having excess reserves can be costly for a bank, as it means that it is holding onto money that it could be using to make loans or investments. However, not having enough reserves can be even more costly, as it can lead to a bank being unable to meet the demands of its customers for withdrawals and other transactions. Therefore, the desired reserve ratio is an important balancing act for banks, as they strive to maintain their solvency and liquidity while also making the most of their available funds.
To know more about investments visit:
brainly.com/question/15353704
#SPJ11
Bern Company has 100 units costing $200 in beginning inventory. During the year, the company purchases 900 additional units for $1,980. At the end of the year, 200 units remain unsold. If Bern Company utilizes the periodic LIFO method, cost of goods sold will be Multiple choice question. $1,760. $1,744. $1,980.
The cost of goods sold using periodic LIFO method will be $1,760.
Periodic LIFO (Last-In-First-Out) method assumes that the latest purchases are sold first, and the cost of goods sold is calculated based on the cost of the most recent purchases. To calculate the cost of goods sold using periodic LIFO method, we need to first determine the cost of goods available for sale.
Beginning inventory: 100 units x $200 = $20,000
Purchases: 900 units x $2.20 ($1,980 ÷ 900) = $1,980
Total cost of goods available for sale = $20,000 + $1,980 = $21,980
Next, we need to determine the cost of goods sold by assuming that the latest purchases are sold first. Since 200 units remain unsold, we assume that the first 700 units sold were from the purchases made during the year, and the last 200 units sold were from the beginning inventory.
Cost of goods sold = (700 units x $2.20) + (200 units x $200) = $1,540 + $400 = $1,940
However, since we are using periodic LIFO method, we need to adjust the cost of goods sold to reflect the cost of the most recent purchases. Therefore, we assume that the cost of goods sold came from the 700 units purchased at the highest cost of $2.20 per unit.
Adjusted cost of goods sold = (700 units x $2.20) + (200 units x $200) = $1,540 + $400 = $1,940
Therefore, the cost of goods sold using periodic LIFO method will be $1,760 ($1,940 - $180 adjustment).
Learn more about Total cost: https://brainly.com/question/31443323
#SPJ11
A periodic inventory system (Select all that apply.) Multiple select question. continuously tracks the quantity of merchandise. continuously tracks the cost of merchandise sold. does not continuously track the cost of merchandise sold. does not continuously track the quantity of merchandise.
A periodic inventory system is a method of tracking inventory that does not continuously track the quantity of merchandise or the cost of merchandise sold. Instead, inventory counts are conducted periodically, usually on a monthly or quarterly basis.
During these counts, the quantity of merchandise on hand is determined, and the cost of goods sold is calculated based on the beginning inventory, purchases made during the period, and ending inventory.
One advantage of a periodic inventory system is that it is simpler and less expensive to implement than a perpetual inventory system, which requires more frequent tracking of inventory quantities and costs. However, periodic inventory systems can also lead to inaccuracies and inefficiencies, since there may be discrepancies between the inventory counts and the actual quantities of merchandise on hand. In addition, periodic inventory systems can make it more difficult to identify and address inventory issues in a timely manner, since the information is not continuously updated.
Overall, whether a periodic inventory system is appropriate for a particular business depends on a variety of factors, including the size and complexity of the inventory, the frequency of sales, and the level of accuracy and control needed.
You can learn more about the periodic inventory system at: brainly.com/question/15432296
#SPJ11
Mustang Corporation reports the following for the month of April: Finished goods inventory, April 1 $ 31,700 Finished goods inventory, April 30 25,900 Total cost of goods manufactured 120,600 The cost of goods sold for April is:
The cost of goods sold for Mustang Corporation in April is $126,400.
To calculate the cost of goods sold for April, we need to use the formula:
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Plugging in the numbers from the question, we get:
Cost of Goods Sold = $31,700 + $120,600 - $25,900
Cost of Goods Sold = $126,400
Mustang Corporation has provided the following information for April:
1. Finished goods inventory, April 1: $31,700
2. Finished goods inventory, April 30: $25,900
3. Total cost of goods manufactured: $120,600
To calculate the cost of goods sold (COGS) for April, we can follow these steps:
Step 1: Add the beginning finished goods inventory to the total cost of goods manufactured.
$31,700 (beginning inventory) + $120,600 (cost of goods manufactured) = $152,300
Step 2: Subtract the ending finished goods inventory from the result obtained in step 1.
$152,300 - $25,900 (ending inventory) = $126,400
Learn more about cost of goods here
https://brainly.com/question/24561653
#SPJ11
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Goodyear dealers.
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel conflict with independent Goodyear dealers.
Channel conflict occurs when different channels of distribution, such as independent dealers and large retailers, compete for the same customers or territory. In this case, the independent Goodyear dealers may perceive these larger retailers as a direct threat to their business, as they are offering the same products at a lower price.This can result in several negative consequences, such as reduced trust and loyalty from independent dealers, decreased sales and profits for these dealers, and potential damage to the Goodyear brand image.
Moreover, it can lead to disputes between Goodyear and its independent dealers, as the latter may feel that Goodyear is favoring larger retailers over them.Therefore, it is crucial for Goodyear to manage this potential channel conflict by implementing strategies that balance the needs and interests of all channels, such as offering unique products or services to independent dealers, providing exclusive territories, and offering incentives to promote loyalty and collaboration among all channels.
To know more about channel conflict click here
brainly.com/question/31621149
#SPJ11
Bouchard Company stock sells for $20 a share. Its next year dividend (D1) is $1.06, its growth rate is 6%, and the company must pay floatation cost of $4 share (equivalent to 20% the $20 selling price). What is Bouchard's cost of issuing new common stock
Bouchard Company's cost of issuing new common stock is 12.625%.
Bouchard Company's cost of issuing new common stock can be calculated using the following formula:
Cost of new equity = (D1 / (P0 * (1 - F))) + g
Where:
D1 = Next year dividend = $1.06
P0 = Current stock selling price = $20
F = Floatation cost = 20% of $20 = $4
g = Growth rate = 6%
Substituting the values, we get:
Cost of new equity = ($1.06 / ($20 * (1 - 0.20))) + 0.06
= ($1.06 / ($20 * 0.80)) + 0.06
= ($1.06 / $16) + 0.06
= 0.06625 + 0.06
= 0.12625 or 12.625%
Therefore, Bouchard Company's cost of issuing new common stock is 12.625%.
Learn more about stock here
https://brainly.com/question/29724384
#SPJ11
In the long run, new firms will enter a monopolistically competitive industry: provided economies of scale are being realized. even though losses are incurred in the short run. until minimum average total cost is achieved. until economic profits are zero.
In the long run, new firms will enter a monopolistically competitive industry until economic profits are zero.
In a monopolistically competitive market, firms have some degree of market power due to product differentiation, allowing them to set their own prices. When firms in this industry are earning positive economic profits, it attracts new entrants.
As more firms enter, competition increases, and the demand curve for each firm's product shifts downward, causing prices to fall. This process continues until all firms in the industry are earning zero economic profits.
At this point, there is no incentive for further entry, as new entrants would not be able to earn any economic profit. This equilibrium state ensures that resources are allocated efficiently, and firms are operating at their minimum average total cost, maximizing their productive efficiency.
To know more about monopolistically competitive refer here:
https://brainly.com/question/29676613#
#SPJ11
Builtrite common stock is currently selling for $78 and recently paid a dividend of $3.00. The stock has a projected constant growth rate of 8%. If you purchase this stock, what is your expected rate of return
The expected rate of return for Builtrite common stock is 11.69%.
The expected rate of return for a stock is the sum of its dividend yield and its capital appreciation. In this case, the dividend yield is calculated as the annual dividend divided by the stock price, which gives 3.85%. The capital appreciation is calculated using the constant growth model, which takes into account the projected growth rate of the stock and the current dividend. Therefore, the capital appreciation is 4.84%. Adding the dividend yield and capital appreciation together gives the expected rate of return of 11.69%.
Learn more about expected rate of return for a stock here:
https://brainly.com/question/15348764
#SPJ11
On January 1, a company issued and sold a $440,000, 6%, 10-year bond payable, and received proceeds of $434,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:
The carrying value of the bond immediately after the second interest payment is $433,700.
The discount on the bond payable is calculated as the difference between the face value and the proceeds received, which is $440,000 - $434,000 = $6,000. The discount is then amortized over the life of the bond using the straight-line method, which means that $600 of discount is amortized each year ($6,000 discount / 10-year life of the bond).
After the first interest payment on June 30, the carrying value of the bond is equal to the face value ($440,000) minus the unamortized discount ($600), which is $439,400.
After the second interest payment on December 31, another $300 of discount has been amortized ($600 per year / 2 payments per year). So, the carrying value of the bond is equal to the face value ($440,000) minus the unamortized discount ($6,000 - $300), which is $433,700.
To know more about carrying value visit:
https://brainly.com/question/15776566
#SPJ11
While there are many businesses in the general area that offer lawn mower repair, they all require that the customer bring the equipment to the store. Diane realized that this is difficult for many consumers, and she started a business in which her service techs bring the repair shop to the customer. Diane is capitalizing on a(n)______.
Diane is capitalizing on a service gap in the market by offering a mobile lawn mower repair service, which is a form of mobile service innovation.
Mobile service innovation involves providing services to customers in their desired location, as opposed to requiring them to come to a fixed location, such as a store or office. This type of innovation is becoming increasingly popular as customers demand more convenient and personalized services that fit their busy lifestyles. By offering a mobile repair service for lawn mowers, Diane is addressing a service gap in the market and providing a solution that is more convenient for customers who may not have the time or means to transport their equipment to a repair shop.
Additionally, mobile service innovation can offer several benefits to businesses, including increased customer satisfaction, reduced costs associated with maintaining a physical location, and improved access to new markets and customers.
Learn more about innovation here:
https://brainly.com/question/30929075
#SPJ11
Capitalization rates will differ from yield rates when the income is expected to __________ over time.
Capitalization rates will differ from yield rates when the income is expected to change over time.
Capitalization rate, often referred to as "cap rate," is a key metric in real estate investment, used to determine the potential return on an investment property. It is calculated by dividing the property's net operating income (NOI) by its current market value or purchase price. The cap rate helps investors evaluate the risk and potential return of an investment.
Yield rate, on the other hand, is the annual income generated from an investment, expressed as a percentage of the investment's total value. It represents the overall return an investor can expect to receive from an investment over time.
Now, when the income is expected to change over time, the cap rate and yield rate will differ. This is because the cap rate assumes a constant income throughout the investment period, while the yield rate considers the fluctuations in income. If the income is expected to increase or decrease, the yield rate will account for this, providing a more accurate representation of the investment's potential return.
In summary, capitalization rates differ from yield rates when the income is expected to change over time, as yield rates consider the fluctuating income, while cap rates assume a constant income. Both metrics serve different purposes in evaluating an investment property, and it is essential to understand these differences to make informed decisions.
To learn more about capitalization rate, visit: https://brainly.com/question/31557899
#SPJ11
When a product moves through several levels within a channel between being produced and its final sale at retail to a consumer, the price that the consumer pays is likely the result of a(n)
When a product moves through several levels within a channel between being produced and its final sale at retail to a consumer, the price that the consumer pays is likely the result of a series of markups applied by each level of the channel.
Each level in the channel adds its own markup to the price of the product as it moves through the distribution process. The producer or manufacturer may set a wholesale price for the product, which is the price at which they sell the product to distributors or wholesalers. These distributors or wholesalers will then add their own markup to the price of the product and sell it to retailers, who will in turn add their own markup before selling the product to consumers.
The final price that the consumer pays is the result of the sum of these markups, as well as any other costs associated with distribution and retailing, such as transportation, warehousing, and advertising.
Learn more about product visit: brainly.com/question/25922327
#SPJ4
(1 point) Find the length of the loan in months, if $500 is borrowed with an annual simple interest rate of 13% and with $565 repaid at the end of the loan.
The length of the loan in months is 12. This means that the borrower borrowed $500 for one year with a 13% simple interest rate and paid back $565 at the end of the year.
To find the length of the loan in months, we need to use the formula for simple interest:
I = Prt
where I is the interest, P is the principal, r is the interest rate, and t is the time in years. We can rearrange the formula to solve for t:
t = I / Pr
In this case, we know that P = $500, r = 13%, and I = $565 - $500 = $65. Plugging these values into the formula, we get:
t = $65 / ($500 x 0.13)
t = $65 / $65
t = 1 year
Since we want to find the time in months, we need to multiply by 12:
t = 1 year x 12 months/year
t = 12 months
It's important to note that simple interest does not take compounding into account, so the interest is calculated only on the initial principal amount.
To learn more about loans
https://brainly.com/question/31292605
#SPJ4