Answer:
b. raise the quantity demanded of goods and services, but lower the quantity supplied.
Explanation:
The law of demand shows an inverse relationship between price and quantity demanded. It states that if the price of goods and services decreases, the demand will increase. This is because a lower price increasing the purchasing power of buyers. On the other hand, the law of supply states shows that price and quantity supplied will move in the same direction; it states that if the price of goods and services decrease, the quantity supplied will also decrease.
Answer:
The answer is $41.2
Explanation:
This will be solved by Dividend Discount Model which is one of the ways of valuing the price of shareholders' equity.
Here, the future value of dividend payment are discounted using the cost of equity.
Ke = D1/Po + g
Where Ke is the cost of equity
D1 is future dividend payment.
Po is the current share price or stock price
g is the growth rate.
To find the current price of stock price, we need to re write the equation;
Po = D1 ÷ (Ke - g)
D1 = Do x 1.03
= $2 x 1.03
=2.06
Ke = 8% or 0.08
g = 3% or 0.03
So we have;
2.06 ÷ (0.08 -0.03)
$2.06 ÷ 0.05
$41.2
Answer:
$343,725; $200,850
Explanation:
(a) The total incremental cost of making 51,500 units is calculated as below:
Total Relevant Costs:
= Variable Cost Per Unit + Fixed Manufacturing Costs
= (Relevant Amount Per Unit × No. of units) + Fixed Manufacturing Costs
= ($5.15 × 51,500) + $78,500
= $265,225 + $78,500
= $343,725
Therefore, the total incremental cost of making 51,500 units is $343,725.
(b) The total incremental cost of buying 51,500 units is determined as below:
Total Relevant Costs = Purchase Price Per Unit × No. of units
= $3.90 × 51,500
= $200,850
Therefore, the total incremental cost of buying 51,500 units is $200,850.
(c) The company should buy the component from outside supplier as it results in a lower total incremental cost of $200,850.
The net profit or loss from buying the call should be $3.17 and -$7.55.
here, a Stock price higher than the strike price option will be exercised.
Net profit = Stock price - Strike price - Option premium
= $110.72 - $100 - $7.55
Net profit = $3.17
Stock price is lower than the strike price option will fail.
Net profit = Stock price - Strike price - Option premium
= 0 - $7.55
Net profit(loss) = -$7.55
Learn more about net profit here: brainly.com/question/24364525
Explanation:
There is no clear purposeful in the business writing above.
For it to be a message that effectively communicates the main information that you want to transmit, it is important that the message is written in the most objective and accurate way possible, so that there is no communication noise and so that the message reaches the receiver and the message is understood. central purpose of the message effectively.
b. Negative, and dog biscuits are a normal good.
c. Positive, and dog biscuits are an inferior good.
d. Positive, and dog biscuits are a normal good.
Answer: d. Positive, and dog biscuits are a normal good.
Explanation:
Normal goods are goods that are positively related with income and negatively related with prices. While, inferior goods are those goods which are negatively related with income. When demand for dog biscuits rises as a result of a rise in income, it shows that dog biscuits are a normal good for Danita. Therefore, we can say for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits are a normal good.
The income elasticity of demand for canine biscuits is positive in Danita's case, indicating that they are a normal good. This is because as Danita's income increased, so did her demand for dog biscuits.
The income elasticity of demand measures how the quantity demanded of a good changes in response to a change in income. As Danita's income increases by 7 percent and her demand for dog biscuits increases by 12 percent, the income elasticity of demand is positive. This is calculated by taking the percentage change in quantity demanded divided by the percentage change in income.
Based on the information given, for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits would be classified as a normal good, since the demand for them increases as income increases. Inferior goods, by contrast, have a negative income elasticity of demand: as income increases, demand for them falls.
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Question Completion:
Sandersen Inc, sells minicomputers. During the past year, the company's sales were 3.00 million. The cost of its merchandise sold came to 2.00 million, and cash operating expenses were 400,000; depreciation expense was 100,000, and the firm paid 150,000 in interest on its bank loans. Also, the corporation paid 25,000 in the form of dividends to its own common stockholders.
Calculate the corporation tax liability.
The corporate tax rates are listed here:
15% $0-$50,000
25% $50,001-$75,000
34% $75,001-$10,000,000
35% over $10,000,000
Answer:
Sandersen Inc.
Computation of the Corporation's Tax Liability:
Taxable profit = $350,000
15% $0-$50,000 $7,500 ($50,000 * 15%)
25% $50,001-$75,000 6,250 ($25,000 * 25%)
34% $75,001-$10,000,000 93,500 ($275,000 * 34%)
35% over $10,000,000 0
Total Tax Liability = $107,250
Explanation:
Data and Calculations:
Sales Revenue $3,000,000
Cost of goods sold 2,000,000
Gross profit $1,000,000
Operating expenses 400,000
Depreciation expense 100,000
Operating profit $500,000
Interest expense 150,000
Profit before taxes $350,000
Income Taxes 107,250
Profit after taxes $242,750
Dividend 25,000
Retained Earnings $217,750