Answer:
The value of the bond today is closest to $1648.85
Explanation:
The value of the bond today is closest to:
Present Value = FV / (1+i)^n *m
FV= 2500
I = 4.25 = 0.0425
N= 5
M= 2
The value of the bond today = 2500 / (1+0.0425) ^5*2
The value of the bond today = 2500 / 1.516214468
The value of the bond today = 1648.853256
The value of the bond today = $1648.85
On January 2, 2021, L Co. issued at face value $26,500 of 3% bonds convertible in total into 2,300 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 2,300 shares of common stock outstanding. L's 2021 net income was $8,500. L's income tax rate is 20%. No potential common shares other than the convertible bonds were outstanding during 2021. L's diluted earnings per share for 2021 would be:
Answer:
Diluted earnings per share for 2021 = $1.98
Explanation:
Bond interest expense $883
(26,500 * 3%)
Bond interest expense, net of tax $618
(883*(1-30%) )
Net income for diluted earnings $9,118
($8,500 + $618 )
Actual and Potential common shares 4,600 shares
(2,300 shares + 2,300 shares)
Diluted earnings per share for 2021 = Net income for diluted earnings / Actual and Potential common shares
Diluted earnings per share for 2021 = $9,118 / 4,600
Diluted earnings per share for 2021 = $1.98
Lee is a developer on the team. At every daily stand-up Lee reports, "Yesterday, I worked on indexing. Today, I will work on indexing. I have no impediments". What approach should the Scrum Master suggest to Lee to improve the team's visibility into his work? g
Answer:
He should try brainstorming new things to work on
Explanation:
A Scrum master wants to the entire team to be successful, and so needs to commend and encourage new ideas.
Rather than simply work on indexing, Lee could explore other areas in need of attention. However, the Scrum master plays a vital role in shaping the best talents in the team.
An investment of 1 will double in 27.72 years at a force of interest, δ. An investment of 1 will increase to 7.04 in n years at a nominal rate of interest numerically equal to δ and convertible once every two years. Calculate n.
Answer:
80
Explanation:
According to the given situation, the computation of n is shown below:-
EXP[27.72δ]=2
δ =0.025
m = 1 ÷ 2
(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04
n ÷ 2 × ln(1.05)=ln(7.04)
n ÷ 2=40
n = 80
Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question
Hence,the n is 80
A contract pledging title to assets as security for a node or bond is known as (an):
A. Sinking fund.
B. Mortgage.
C. Equity.
D. Lease.
E. Indenture
Answer:
B. Mortgage.
Explanation:
This is simply explained to be a loan that has been taken in retrospect to purchasing of lands or property. This is of different forms, some are said to run for 15 years while some run up till 30 years in some cases too. In many cases, they are sometimes addressed to be "claims on property". Some are seen to be fixed-rated and in this case, borrowers are known to pays the same interest rate for the life of the loan.
In as much as they are forms of rights from incoperation, individuals and businesses use mortgages to make large real estate purchases without paying the entire purchase price up front. Borrower also repays the loan, plus interest, until she or he owns the property free and clear.
Find the APR or stated rate in each of the following cases and show calculations:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
1. 10.6%-EAR , compounded semiannually
2. 11.5% EAR, compounded monthly
3. 9.2% EAR, compounded weekly
4. 12.9% EAR, compounded Infinite
Answer and Explanation:
The computation is shown below:
The formula is
APR = P × {(EAR + 1 )^(1 ÷ P) - 1}
1. For semi annually
= 2 × (0.106 + 1)^(1 ÷ 2) - 1}
= 10.33%
2. For monthly
= 12 × (0.115 + 1)^(1 ÷ 12) - 1}
= 10.93%
3. For weekly
= 52 × (0.092 + 1)^(1 ÷ 52) - 1}
= 8.81%
4. For infinite
= 365 × (0.129 + 1)^(1 ÷ 365) - 1}
= 12.10%
Which statement best describes an authoritarian style of communication
Answer:
High task-low relationship behavior, initiating a closed presentation
Explanation:
Authoritarian communication style, which is also popularly known as autocratic leadership is a type of communication style in which the leader holds rigid control over the team as he/she is directly responsible for taking decisions, regulating the actions, rules, methodologies. This is a 'high task and low-relationship behavior' communication style and initiates a closed control and presentation of procedures and policies. The expectations are very clear and close supervision of tasks is made by the leader to ensure maximum productivity.
On the basis of this information, what is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure?
Answer:
Hello your question is incomplete below is the complete question
LeCompte Learning Solutions is considering making a change to its capital structure in hopes of increasing its value. The company's capital structure consists of debt and common stock. In order to estimate the cost of debt, the company has produced the following table: (Percent financed with debt (wd) 0.10, 0.20, 0.30, 0.40, 0.50) ; (Percent financed with equity (wc) 0.90, 0.80, 0.70, 0.60, 0.50) ; (Debt-to-equity ratio (D/S) 0.11, 0.25, 0.43, 0.67, 1.00) ; (Bond Rating AAA, AA, A, BBB, BB) ; (Before-tax cost of debt 7.0%, 7.2, 8.0, 8.8, 9.6) ... The company uses the CAPM to estimate its cost of common equity, rs. The risk-free rate is 5% and the market risk premium is 6%. LeCompte estimates that if it had no debt its beta would be 1.0. (Its "unlevered beta," bu, equals 1.0.) The company's tax rate, T, is 40%. ... On the basis of this information, what is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure? a) wc = 0.9; wd = 0.1; WACC = 14.96% b) wc = 0.8; wd = 0.2; WACC = 10.96% c) wc = 0.7; wd = 0.3; WACC = 7.83% d) wc = 0.6; wd = 0.4; WACC = 10.15% e) wc = 0.5; wd = 0.5; WACC = 10.18%
Answer : wc = 0.6; wd = 0.4; WACC = 10.15% ( D )
Explanation:
Given data :
company's tax rate = 40% = 0.4
attached below is the tabular solution to the problem above
The formula for calculating ( Beta, Return and WACC on the table for each given D/E )
for Beta :
= 1 [ 1 + ( 1 - T ) (d/e) ]
d/e = debit to equity ratio
T = tax rate
for Return :
( risk free rate + market risk premium ) * beta
where risk free rate = 5%
market risk premium = 6%
for WACC:
Rd * Wd * ( 1 - company tax rate ) + return * WC
for D/E = 0.11
beta = 1[1 + (1-0.4)(0.11) ]
= 1.0667
return = (5% + 6%) (1.0667) = 11.40%
WACC = 7% * 0.1 * (1-0.4) + 11.40% * 0.9 = 10.68%
The option with the lowest WACC is the most suitable option hence we choose D
Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $4 per vehicle. For the month of November, the company planned for activity of 94 vehicles, but the actual level of activity was 54 vehicles. The actual materials and supplies for the month was $2,250. The materials and supplies in the planning budget for November would be closest to:
Answer:
$2366
Explanation:
Given the following :
Cost formular for Cadavieco for its material and supplies is $1,990 per month plus $4 per vehicle.
That is :
Cost formular : 1990 + 4x
Where 1990 is the fixed cost
4x is the variable cost which depends on x, number of vehicles.
In November :
Planned activity = 94 vehicles
Actual activity : 54 vehicles
Therefore, materials and supplies in planning budget for November :
Fixed cost + 4(planned activity)
$1990 + $4(94)
$1990 + $376
= $2366
"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"
Complete question reads;
"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"
A. The report can be sent only if it has been approved by a supervisory analyst
B. The report can be sent only if it is accompanied or proceeded by, a preliminary prospectus.
C. The report can be sent only if it has been approved by the branch office.
D. The report cannot be sent until registration is effective.
Answer:
D. The report cannot be sent until registration is effective.
Explanation:
Usually, under the guidelines of the Securities Act of 1933, no offer can be made to the customer unless a final registration has been made and effected by means of a prospectus.
Thus, the report cannot be sent until registration is effective..
Pina Company sold 196 color laser copiers on July 10, 2017, for $3,670 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $319. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2017. Actual warranty costs (inventory) incurred in 2017 were $17,370.
Answer:
The journal entry to record the sale of the laser copiers
July 10, 2017, 196 laser copiers sold
Dr Cash 719,320
Cr Sales revenue 719,320
The journal entry to record the warranty expense
July 10, 2017, warranty expense for 196 laser copiers sold
Dr Warranty expense 62,524
Cr Warranty liability 62,524
The journal entry to record warranty costs
December 31, 2017, warranty costs for 196 laser copiers sold
Dr Warranty liability 17,370
Cr Inventory 17,370
The company cannot record any revenue resulting from the warranty liability because the warranty is still valid.
The method of accounting for long-term investments in equity securities that most closely fits the requirements of accrual accounting is the
Answer:
Equity Method
Explanation:
The reason is that the profit after tax earned during the period is added to the value of investment and the cash dividends received reduces the value of the equity investment. This is as per the guidelines of the accrual accounting which says that revenue must be recorded when they are earned and expenses must be recorded when they are incurred. Hence it is as per the guidelines of accrual accounting principles.
An air-conditioning repair department manager has compiled data on the primary reason for 41 service calls for the previous week, as shown in the table.
Job
Number Problem/
Customer Type Job
Number Problem/
Customer Type Job
Number Problem/
Customer Type
301 O/C 315 W/C 329 F/R
302 W/C 316 F/R 330 N/C
303 N/R 317 F/R 331 F/C
304 W/C 318 W/R 332 O/C
305 W/C 319 F/R 333 N/R
306 F/R 320 F/R 334 W/C
307 N/R 321 F/C 335 F/C
308 F/R 322 O/C 336 W/R
309 O/C 323 W/C 337 O/R
310 O/C 324 F/R 338 W/C
311 O/C 325 O/R 339 O/R
312 N/R 326 W/R 340 N/R
313 F/C 327 N/R 341 F/R
314 O/C 328 F/R
Key: Problem type: Customer type:
N = Noisy C = Commercial customer
F = Equipment failure R = Residential customer
W = Runs warm
O = Odor
b. Select a appropriate Pareto diagram for the Residential customers.
References
eBook & Resources
Multiple ChoiceDifficulty: 2 Medium
Problem 9-2 Part bLearning Objective: 09-13 Describe and use various quality tools.
7.
value:
8.00 points
Required information
Problem 9-2 Part c
c. Select a appropriate Pareto diagram for the Commercial customers.
Answer:
Find the answers in the attached documents
Explanation:
A company's expected receipts from sales and planned disbursements to pay bills is commonly called a:
Answer:
Cash budget.
Explanation:
A company's expected receipts from sales and planned disbursements to pay bills is commonly called a cash budget.
A cash budget can be defined as a budget consisting of expected cash receipts or estimation of the cash flows and planned disbursements to pay bills, for a business over a specific period of time.
In Financial accounting, a cash budget is typically used to determine whether a business firm has sufficient funds for its smooth operations and evaluate if cash are being spent judiciously or productively. A cash budget comprises of financial items such as costs incurred or expenses paid, revenues generated, payments and loan receipts collected.
othman Incorporated has a $800,000 investment opportunity with the following characteristics: Sales $ 2,240,000 Contribution margin ratio 50% of sales Fixed expenses $ 1,008,000 The margin for this investment opportunity is closest to:
Answer:
5%
Explanation:
We have net operating income as sales x contribution margin. The fixed expense would be subtracted from the resulting value.
2,240000 * 0.5
= 1,112,000
1112000 - 1008000
= 112000
The margin =
112000/2240000
= 0.05
Also 5 percent
The margin for this investment opportunity is closest to 5 percent.
Regarding employment or association with attest clients, the employment of a former partner
by a client in a key position most likely impairs firm independence if
A. Team members have interactions with the former partner.
B. The former partner cannot influence the accounting firm’s operations.
C. Amounts are to be paid to the former partner based on a fixed formula.
D. The former partner consults with the accounting firm.
Answer:
D. The former partner consults with the accounting firm.
Explanation:
An attest client is defined as a person or entity that an attest activity is performed for.
An attest service is performed by a third party who provides an independent review of a client's business based on specific procedures.
For example when an auditor performs independent review of a company's financial records.
The relationship with an attest client must be carefully considered before an engagement is accepted.
So in this scenario if a former employee of a firm is employed by an attest client it will impair the firm's independence if the former partner still consults with the firm.
What process conveys positive and negative job information to the applicant in an unbiased manner?
Answer: Realistic job preview
Explanation:
Realistic job preview is a process conveys positive and negative job information to the applicant in an unbiased manner.
It should be noted that a realistic job preview gives information about what the job entails and the role the candidates will play when they are employed.
Pecking order hypothesis. Rachel can raise capital from the sources in the popup window: LOADING.... What is Rachel's weighted average cost of capital if she needs to raise a. $10,000? b. $25, 000? c. $35,000?a. What is Rachel's weighted average cost of capital if she needs to raise $10,000?Source of Funds Parents Friends Bank loan Credit cardInterest Rate 0% 5.5% 11.5% 15.5%Borrowing Limit $11,000 $2,000 16,000 $6,000
Answer:
a. 0%
b. 5.96%
c. 8.23%
Explanation:
Ease see solution for Rachel's weighted average cost of capital for each;
a. WACC = 10,000/10,000 * 0.1 = 0%
b. WACC = [11,000/25,000 * 0%] + [2,000/25,000 * 5.5%] + [12,000/25,000 * 11.5%]
= 0%+0.44%+5.52%
= 5.96%
c. WACC =[11,000/35,000 * 0%] + [2,000/35,000 * 5.5%] + [16,000/35,000 * 11.5%] + [6,000/35,000 * 15.5%]
= 0%+0.3140%+5.2571%+2.6571%
= 8.23%
Rocky Mountain Bikes' Colorado warehouse has 50 Pack Rat Deluxe Bike Baskets in stock at a moving average price of $25.13 each. They purchase 300 from Rat-a-tat-tat Bike Products at $25.54 each and transfer 100 from their Texas warehouse where the moving average price is $25.25 each. Assuming all of the baskets mentioned above have been received in Colorado and there have been no sales from Colorado, what is the current moving average price and total inventory valuation for Pack Rat Deluxe Bike Baskets in the Colorado warehouse.
Answer:
Rocky Mountain Bikes
Current moving average price is:
$25.43
Total inventory valuation is:
$11,443.50
Explanation:
Colorado warehouse:
Item Qty Price Moving Total Total Value
average price Qty
Inventory 50 $25.13 50 $1,256.50
Purchase 300 $25.54 $25.48 350 $8,918.50
Transfer 100 $25.25 $25.43 450 $11,443.50
Rocky Mountain Bikes' Colorado warehouse uses the moving average price to value the inventory. The moving average price is computed by creating a constantly updated average price. This smoothens the price data.
What is the MIRR of a project with the following cash flows? The WACC = 11.9%. Year 0 1 2 3 Cash Flow -100 50 50 50 Group of answer choices 19.0% 11.9% 23.4% Cannot be determined without knowing the IRR. CHEGG
Answer:
the MIRR of a project is 19.0%.
Explanation:
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= $50 x (1.119) ^ 2 + $50 x (1.119) ^ 1 + $50 x (1.119) ^ 0
= $62.61 + $55.95 + $50.00
= $168.56
The Next Step is to Calculate the MIRR using a Financial Calculator :
-$100 CFj
0 CFj
0 CFj
$168.56 CFj
Shift IRR/Yr 19.0104% or 19.0%
Therefore, the MIRR is 19.0%.
Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.A) product positioningB) brandingC) perceptual marketingD) image marketingE) comparative
Answer:
a
Explanation:
Positioning refers to the place that a product occupies in the minds of the customers and how it is distinguished from other products.
For example, a firm might attempt to distinguish itself from other products by claiming to be organic. This creates an image in the mind of consumers that the product is safe and healthy
The Lewiston Company accrues $100 for one day’s wage expense at 12/31/22. The 1/2/23 reversing entry is not made. These wages plus wages of two days in the new year are paid on 1/2/23. Total cash paid is $300. The following journal entry is made on 1/2/23: Wage Expense $300 Cash $300 Indicate the errors for 12/31/23 Retained Earnings and 2023 Wage Expense, respectively:
Answer:
since $100 worth of 2022 wages were reported ion 2023, the wages expense account for 2023 will be overstated by $100, so net income 2023 will be understated by $100.
Even thought the net income 2023 was understated, the retained earnings account will not be understated. This is because the net income 2022 was overstated by $100, which will offset the understatement of the net income 2023 account.
Wages expense is a temporal account which must be closed at the end of the accounting period, while retained earnings is a permanent account that is carried from one year to another.
Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probability of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000 and are willing to pay $100 over the expected loss for insurance.
If the insurance company can successfully screen both Nadia and Samantha into appropriate contracts, it would earn?
a. $3500 loss.
b. Between zero and $200.
c. Between zero and $200 loss.
d. $3500 gain.
Answer:
Option B
Explanation:
Both Nadia and Samantha have insured their cars and willing to pay $100 over the expected loss for insurance. If the car is stolen the company would pay expected loss and would earn nothing and if the car is not stolen the company would not be liable for any loss and would earn $200, Therefore the company would earn between $0 and $200.
Adams Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 10,000 and 16,000 trophies per year. The following cost data apply to various activity levels:
Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round "Cost per unit" answers to 2 decimal places.)
Number of Trophies 6,000 8,000 10,000 12,000
Total costs incurred
Fixed
Variable
Total costs $ 76,000 42,000 118,000 $ $ 0 $ 0 $ 0
Cost per unit $ 12.67
Fixed Variable
Total cost per trophy 7.00 $ 19.67 $ 0.00 $ 0.00 $ 0.00
Answer:
Number of Trophies 6,000 8,000 10,000 12,000
Total costs incurred
Fixed 76,000. 76,000 76,000 76,000
Variable 42,000 56,000 70,000 84,000
Total costs 118,000 132,000 146,000 160,000
Cost per unit 12.67 9.50 7.60 6.33
Fixed Variable 7.00 7.00 7.00 7.00
Total cost per trophy 19.67 16.50 14.60 13.33
Explanation:
Calculation to Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table
Number of Trophies 6,000 8,000 10,000 12,000
Total costs incurred
Fixed 76,000 76,000 76,000 76,000
Variable 42,000 56,000 70,000 84,000
Total costs 118,000 132,000 146,000 160,000
Cost per unit 12.67 9.50 7.60 6.33
Fixed Variable 7.00 7.00 7.00 7.00
Total cost per trophy 19.67 16.50 14.60 13.33
Fixed Cost =76,000
Variable cost per unit =42,000/6,000 units=7 per units
Variable cost per unit =8,000 units×$7 =$56,000
Variable cost per unit=10,000 units×$7=$70,000
Variable cost per unit=12,000 units× $7=$84,000
Total Cost =Fixed cost + Variable cost
Cost per unit=Fixed cost/Number of units
8,000 units=76,000/8,000=$9.50
10,000 units=76,000/10,000=$7.60
12,000 units=76,000/12,000=$6.33
Fixed Variable=42,000/6,000 units=7 per units
Total cost per trophy =Cost per units + Fixed variable
g Vega is defined as Group of answer choices the sensitivity of an option's price to changes in volatility. the change in the value of the underlying asset for a dollar change in the call price. the percentage change in the value of an option for a 1% change in the value of the underlying asset. the change in the volatility of the underlying stock price. the change in the value of an option for a dollar change in the price of the underlying asset.
Answer: the sensitivity of an option's price to changes in volatility.
Explanation:
Vega us defined as the sensitivity of an option's price to changes in volatility. Vega denotes the amount by which the contract's price of an option changes due to the 1% change that occurs in the underlying asset's implied volatility.
Therefore, based on the scenario that has been explained above, the correct answer is the first option above.
A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total to be paid at maturity of the note is: (Use 360 days a year.) Multiple Choice $10,075 $10,300 $10,450 $10,900 $11,800
Answer:
$10,450
Explanation:
Calculation for the maturity value of the note
The first step
(9%×$10,000×180/360 days)
=$450
Now let find the maturity value of the note
Maturity value of the note=$10,000+$450
Maturity value of the note=$10,450
Therefore maturity value of the note will be $10,450
You buy 105 shares of Tidepool Co. for $45 each and 205 shares of Madfish, Inc., for $11 each. What are the weights in your portfolio?
Answer:
67.96% , 32.31%
Explanation:
105 shares of Tidepool is bought for $45 each
205 shares of Madfisg is bought for $11 each
The first step is to calculate the total value in the portfolio
= 105×$45
= $4,725
= 205×$11
= $2,255
Total value of the portfolio= $4,725+$2,255
= $6,980
Therefore, the weights in the portfolio can be calculated as follows
Tidepool corporation
= 105 × $45/$6980
= $4725/$6980
= 0.6796×100
= 67.96%
Madfish incorporation
= 205 × $11/$6980
= $2255/$6980
= 0.3231×100
= 32.31%
Hence the weights in the portfolio are 67.96% and 32.31%
The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:________.
Price Quantity Demanded
$1 1,200 pies
2 1,100
3 1,000
4 900
5 800
6 700
7 600
8 500
9 400
10 300
11 200
12 100
13 0
Each producer in the market has fixed costs of $9 and the following marginal cost:________.
Quantity Marginal Cost
1 pie $ 2
2 4
3 6
4 8
5 10
6 12
A. Compute each producer’s total cost and average total cost for 1 to 6 pies.
B. Assume the price of a pie is $10. How many pies are sold? How many pies does each producer make? How many producers are there? How much profit does each producer earn?
C. Is the situation described in part (B) a long-run equilibrium? Why or why not?
D. Suppose that in the long run there is free entry and exit. How much profit does each producer earn in the long-run equilibrium? What is the market price? How many pies does each producer make? How many pies are sold in the market? How many pie producers are operating?
Answer:
Explanation:
A.) Answer to question A is attached.
B.) The price of the pie is $10 according to the question. Please note that in a competitive market, a firm produces that level of output at which price equals MC. I.e P = MC. Where there is no such output, then it will produce up to the level in which P>MC.
Therefore, price(P) is equal to MC, P = MC up to the production of 5 pies.
So, producers in the market = 300 ÷ 5
= 60.
Profit = ( 5 × 10 ) - ( 5 × 7.8 )
= 50 - 39
= $11
Therefore, at a price of $10, 300 pies are sold in the market. Each producers makes 5 pies, so there are 60 producers in the market, each making a profit of $11.
C.) In a competitive market, and in the long run, price = minimum ATC.
Here, the minimum ATC is $7, but the price is $10.
The above means that the market is not in the long run equilibrium because price (P) is not equal to the minimum ATC. Thus in the long run, more firms will enter the market until the price equals ATC.
D.) Producers operating = 600 ÷ 2
= 300
It therefore means that in the long run, each producer earns a profit of $0. The market price is $7, while at this price, 600 pies are sold in the market, and each producer makes 2 pies , hence there are 300 producers in operation.
During a period the demand for the goods by the consumers is called quantity demanded. In the market, 300 producers are operating.
What is marginal cost?Marginal cost is the additional cost when the additional unit of the goods or services is added.
The table for the total and the average cost is attached in the image below.
Given, the price of the pie is $10 and the price is equal to the marginal cost of the 5 pies produced. The producers in the market are calculated as:
[tex]\rm Producers = \dfrac{300}{5} = 60[/tex]
Profit is calculated as:
[tex]\begin{aligned} & = ( 5 \times 10 ) - ( 5 \times 7.8 )\\\\&= 50 - 39\\\\&= \$11\end{aligned}[/tex]
In the long-run market, the minimum ATC is $7 but the actual price is $10, hence the market will not be in the long run and more firms and corporations will enter the market till the price equilibrates the ATC.
Pie producers in the market is calculated as:
[tex]\dfrac{600}{2} = 300[/tex]
When the market price is $ 7 then the market sold 600 pies while each producer makes two pies hence 300 producers are operating in the market.
Therefore, producers operating in the market are 300.
Learn more about marginal cost here:
https://brainly.com/question/17122195
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,720,000 in annual sales, with costs of $628,000. The project requires an initial investment in net working capital of $270,000, and the fixed asset will have a market value of $210,000 at the end of the project.
a. If the tax rate is 22 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, e.g., 1,234,567.89.)
b. If the required return is 10 percent, what is the project's NPV? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e.g., 1,234,567.89.)
Answer:
a)
MACRS 3 year depreciation schedule
33.33% x $2,300,000 = $766,590
44.45% x $2,300,000 = $1,022,350
14.81% x $2,300,000 = $340,630
carrying value at end of year 3 = $170,430
net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60
cash flows:
year 0 = -$2,300,000 - $270,000 = -$2,570,000
year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410
year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677
year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993
b)
NPV = $297,794, and IRR = 16.12%
Tamara wants to be the servant leader of her group of franchise operators. Tamara should therefore:_______
a. Work on a large number of problems facing the operators.
b. Listen carefully to the cocerns of the franchise operators.
c. Treat the operators as servants in a nice way.
d. Threat the operators as servants in a mean way,
Answer: b. Listen carefully to the concerns of the franchise operators.
Explanation: A servant leader is one that is there for his team. This he does by checking in with them often to see how they are, what they need, and is involved in helping them develop the required skills needed to advance their careers. Servant leaders also make effort to see situations from other people's perspectives and they therefore make decisions with the team's best interests in mind, as this ensures everyone has the resources and knowledge they need to meet their objectives and goals of the organization.
If Tamara wants to be the servant leader of her group of franchise operators, then she should engage in listening carefully to the concerns of the franchise operators as this would make her team one of the most successful in the company, with low staff turnover and high engagement.
In which of the following situations does a focus group have an advantage over a traditional survey? Choose ALL that apply.
1) When gathering granular, personalized information on a few customers
2) When gathering anonymous consumer feedback
3) When gathering a large dataset for quantitative analysis
4) When the question or topic is likely to be misunderstood by respondents
5) When it is important for each consumer's feedback to be independent of other consumers’ feedback
Answer: 1. When gathering granular, personalized information on a few customers.
4) When the question or topic is likely to be misunderstood by respondents.
Explanation:
The situations when a focus group has an advantage over a traditional survey are:
• When gathering granular, personalized information on a few customers and
• When the question or topic is likely to be misunderstood by respondents.
This is because in focus groups, there's a detailed discussion of issues with selected consumers and also, when the topic is misunderstood by the respondents, there's someone who is willing to help.