BUSINESS COLLEGE

Suppose the demand equation​ is: Upper Q equals 120 minus 1.25 p. What is the price elasticity of demand if the price is ​$60 per unit and output is 45 ​units? The price elasticity of demand is nothing. ​(Enter a numeric response using a real number rounded to two decimal​ places.)

Answers

Answer 1
Answer:

Answer:

-1.67

Explanation:

Given that,

Q = 120 - 1.25p

Initial price, p = $60 per unit

Initial quantity, q = 45 units

Q = 120 - 1.25p

Now, differentiating Q with respect to price,

dQ/dp = -1.25

Therefore,

Price elasticity of demand:

= (dQ/dp) × (p ÷ q)

= -1.25 × (60 ÷ 45)

= -1.25 × 1.33

= -1.67

This means that the demand is elastic.

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What aspects do financial institutions like the Bank of Rhode Island assess before granting funding to businesses
A. 17.2, B. 15.12 C.12% D. 18.7%What would be the weighted average cost of capital for Lam Bakery, Inc. under the following conditions:*The capital structure is 40% debt and 60% equity*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket*The firm’s beta is 1.7*The risk-free rate is 7% and the market risk premium is 6%
Lyme Home has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.65 percent. Interest is paid semiannually. What is the amount of the annual tax shield on debt if the tax rate is 23 percent
A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What's the correct entry to record the transaction?

Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.

Answers

Answer:

e. None of these.

Explanation:

Step 1. Given information.

Taxable Dividend Yield = 9.7%

Tax rate on Dividend yield=15%

Interest rate=10%

Let Tax rate on Interest=X

Step 2. Formulas needed to solve the exercise.

Interest rate * (1 - x) = taxable dividend yield ( 1 - tax rate on dividend yield)

Step 3. Calculation.

0.10*(1-x)=0.097*(1-0.15)

0.10-0.10x=0.08245

0.10x=0.01755

x=0.01755/0.10

=0.1755

=17.55%

Step 4. Solution.

e. None of these.

Advantages of using the opportunity cost of capital as a discount rate are: a. it is easily understood by most investors. b. it permits direct comparison between projects of the same general risk category. c. it permits risk analysis to be incorporated into policy guidelines. d all of the above.

Answers

Answer:

The correct option is D (all of the above)

Explanation:

Opportunity cost is the rate of return which can be earned from the next best alternative investment opportunity with similar risk profile. Also the meaning of opportunity cost doesnt change only the factors do.

This concept is not as simple as it may first appear. The person making the decision must estimate the variability of returns on the alternative investments through the period during which the cash is expected to be used.

On January 2, 2020, real property taxes were levied for the year in the amount of $1,878,700. It was estimated that 2 percent of the levy would be uncollectible. Required: Record this transaction in both the General Fund and governmental activities journal. (Note: Type 4-a-1 as the paragraph number in the [Add description] field for this entry; 4-a-2 for the next transaction, etc. Careful referencing by paragraph number is very helpful should you need to determine where you may have omitted a required journal entry or made an error.) For the General Fund you will be directed to the Detail Journal. Select "Accrued Revenue" in the drop down [Description] menu in the Detail Journal related to the General Fund entry.

Answers

Answer:

The Journal entries are as follows:

(i) General fund

Property taxes receivable current A/c             Dr. $1,878,700

To Allowance for uncollectible current taxes                          $37,574

To Revenue                                                                               $1,841,126

(To record general fund)

(ii) Governmental activities

Property taxes receivable current A/c             Dr. $1,878,700

To Allowance for uncollectible current taxes                          $37,574

To Revenue                                                                               $1,841,126

(To record governmental activities)

Workings:

Allowance for uncollectible current taxes:

= Real property taxes × percent of levy uncollectible

= $1,878,700 × 2%

= $37,574

​Simmons, Inc. uses the​ lower-of-cost-or-market method to value its inventory that is accounted for using the LIFO method. Data regarding an item in its inventory is as​ follows: Cost $26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7 What is the​ lower-of-cost-or-market for this​ item?

Answers

Answer:

The lower- of- market- or cost for the item is $21

Explanation:

In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.

The ceiling is computed as:

Ceiling = Selling price - Completion cost

where

selling price is $30

Completion cost is $2

Putting the values above:

Ceiling = $30 - $2

Ceiling = $28

Computing the floor as:

Floor = Ceiling - Normal profit margin

Floor = $28 - $7

Floor = $21

As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.

Elsa joined her new law firm expecting to participate in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?

Answers

Full question:

Elsa joined her new law firm expecting to have a part in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?

A) prearrival

B) encounter

C) metamorphosis

D) ritual

E) systemic

Answer:

encounter  stage of the socialization process is Elsa

Explanation:

Encounter Stage is the portion of the grades of socialization where a character enters or enrolls in an organization. Encounter is the secondary stage of socialization. People determine how to fit their expectations of equal entities inside the organization.

Because of the encounter stage, and how well a fresh employee fits, it circumscribes the potency, responsibility, and turnover of an employee. This is the type of transition, diversity, and wonder of the newcomer. This can generate a lot of stress for a fresh employee.

A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?A. The NPV is negative, so reject the investment.
B. The NPV is positive, so invest.
C. The NPV is greater than the NOI, so invest.
D. The GPI is greater than the NOI, so invest.
E. The NPV is greater than the OPX, so invest.

Answers

Answer:

Option B is correct.

The NPV is positive, so invest.

Explanation:

Year Cash Flow

0          -160000

1            8995

2             8995

3             8995

4           205995

$13,512.46
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