The company can only produce up to 18 units while staying in profit considering the appreciation in variable cost and the depression in price.
The company is planning to expand its production and get a total revenue of 37800/PKR at a fixed cost of 1000/- PKR and a variable cost of 1050/- PKR.
Currently, the company is producing 36 units, and the current price per unit is 1050 PKR/unit.
The total revenue for the current production will be 36 units × 1050 PKR/unit = 37800 PKR.
Since the total revenue is equal to the sum of fixed cost and variable cost, it implies that;
Total Revenue = Fixed Cost + Variable Cost
Multiplying both sides by the number of units gives;
Total Revenue × Number of Units = Fixed Cost × Number of Units + Variable Cost × Number of Units
Rearranging gives;
Variable Cost × Number of Units = Total Revenue × Number of Units
Fixed Cost × Number of Units
Substituting with values from the problem statement, we have;
Variable Cost × Number of Units = 37800 × Number of Units - 1000 × Number of Units
Variable Cost × Number of Units = (37800 - 1000) × Number of Units Variable Cost × Number of Units = 36800 × Number of Units
But the variable cost is given as 1050 PKR/unit.
Therefore, we can write;
1050 × Number of Units = 36800 × Number of Units
1050 = 36800
Since the price of production has depreciated by 2.13, the current price per unit is equal to;
1050/2.13 = 493 PKR/unit
For the company to make a profit, the total revenue must be greater than the total cost.
Therefore; Total Revenue > Fixed Cost + Variable Cost
Multiplying both sides by the number of units gives;
Total Revenue × Number of Units > Fixed Cost × Number of Units + Variable Cost × Number of Units
Substituting with values from the problem statement, we have;
37800 × Number of Units > 1000 × Number of Units + 1050 × Number of Units37800 > 2050 × Number
Units Solving for the number of units;
Number of Units < 37800/2050Number of Units < 18.44 units
Therefore, the company can only produce up to 18 units while staying in profit considering the appreciation in variable cost and the depression in price.
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As reported by the Wall Street Journal in its’ article entitled "How Pfizer Set the Cost of its New Drug at $9,850," Pfizer determined that:________.
A. a price below $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a rapid increase in its marginal costs.
B. a price below $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity greater than one (in absolute value) for prices less than $10,000.
C. a price above $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity less than one (in absolute value) for prices exceeding $10,000.
D. a price above $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity greater than one (in absolute value) for prices exceeding $10,000.
my brain can't process this lol
Cullumber Company issued $445,000, 15-year, 8% bonds at 96. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017
Answer:
Dr Cash $427,200
Dr Discount on Bonds payable $17,800
Cr Bondss payable $445,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on January 1, 2022
Dr Cash $427,200
($445,000 × 0.96)
Dr Discount on Bonds payable $17,800
($445,000-$427,200)
Cr Bonds payable $445,000
(Being to record the sale of the bond )
Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss
Answer:
the casualty loss is $8,000
Explanation:
The computation of the casualty loss is given below:
Lower of
= Adjusted basis or decline in FMV
= $10,000 or ($18,000 - $10,000)
= $10,000 or $8,000
= $8,000
hence, the casualty loss is $8,000
The same would be considered and relevant
The other values would be ignored
The Argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. In January 2002 the Argentine peso was floated. On January 29, 2003 it was trading at Ps3.20/$. During that one year period Argentina's inflation rate was 20% on an annualized basis. Inflation in the United States during that same period was 2.2% annualized.
Required:
a. What should have been the exchange rate in January 2003 if PPP held?
b. By what percentage was the Argentine peso undervalued on an annualized basis?
c. What were the probable causes of undervaluation?
Answer:
1. 1.17416 peso/$
2. -63.30%
Explanation:
1. The exchange rate in January if PPP is held
1.00 = exchange rate
20 % = inflation in Argentina
0.22% = us inflation
1.00(1+0.20)/(1+0.022)
= 1.00x1.20/1.022
= 1.17416 pesos/$
B. Percentage by which pesos was devalued
(PPP/actual exchange rate)-1
= 1.17416/3.20 -1
= 0.366925-1
= -0.6330
= -63.30%
C. At 20 % we can see that inflation is really high in Argentina which is probably the reason for the undervaluation. But the truth is inflation alone cannot be held responsible. Severe crisis in Argentinas balance of payment is partly responsible
Ballard Company uses the perpetual inventory system. The company purchased $10,000 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $450 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $19,000 cash. What is the amount of gross margin that resulted from these business events
Answer: $8750
Explanation:
The amount of gross margin that resulted from these business events will be calculated as:
Purchase = $10000
Less: Purchase discount = $10000 × 2% = $200
Add: Freight paid = $450
Total purchase = $10250
Gross margin = Sales - Total Purchases
= $19000 - $10250
= $8750
Which statement concerning the kinked demand curve model of oligopoly is false? The portion of the demand curve above the "kink" is more elastic than the portion below. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output. It assumes when one oligopolist raises the price, all others will follow. It addresses the question of price "stickiness."
Answer: It assumes when one oligopolist raises the price, all others will follow
Explanation:
An oligopoly is a form of market where there are dominated by few group of large sellers.
A kinked demand curve simply happens when the elasticity is not thesame for the lower and higher prices and the demand curve isn't a straight line.
It simply suggests that there are rigid prices and assumes when one oligopolist raises the price, all others will follow.
A gold processor has two sources of gold ore, source A and source B. In order to keep his plant running, at least three tons of ore must be processed each day. Ore from source A costs $20 per ton to process, and ore from source B costs $10 per ton to process. Costs must be kept to less than $80 per day. Moreover, Federal Regulations require that the amount of ore from source B cannot exceed twice the amount of ore from source A. If ore from source A yields 2 oz. of gold per ton, and ore from source B yields 3 oz. of gold per ton, how many tons of ore from both sources must be processed each day to maximize the amount of gold extracted subject to the above constraints
Answer:
that is letter A
Im sorry beacause wrong
what are tresholds in auditing?
Answer:
:)
Explanation:
The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.
Chavoy Corporation was organized on July 1. The company's charter authorizes 100,000 shares of $10 par value common stock. On August 1, the attorney who helped organize the corporation accepted 800 shares of Chavoy common stock in settlement for the services provided (the services were valued at $9,600). On August 15, Chavoy issued 5,000 common shares for $78,000 cash. On October 15, Chavoy issued 3,000 common shares to acquire a vacant land site appraised at $51,000. Prepare the journal entries to record the stock issuances on August 1, August 15, and October 15.
Answer:
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
Cr Paid Capital $1,600
August 15
Dr Cash $78,000
Cr Common stock $50,000
Cr Paid in Capital $28,000
October 15
Dr Land $51,000
Cr Common stock $30,000
Cr Paid in Capital $21,000
Explanation:
Preparation of the journal entries to record the stock issuances on August 1, August 15, and October 15.
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
(800 shares*$10 par value)
Cr Paid Capital $1,600
($9,600-$8,000)
(To record stock issuances)
August 15
Dr Cash $78,000
Cr Common stock $50,000
(5,000shares*$10 par value)
Cr Paid in Capital $28,000
($78,000-$50,000)
(To record stock issuances)
October 15
Dr Land $51,000
Cr Common stock $30,000
(3,000shares*$10 par value)
Cr Paid in Capital $21,000
($51,000-$30,000)
(To record stock issuances)
Interest rates on 4-year Treasury securities are currently 5.55%, while 6-year Treasury securities yield 7.7%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places.
Answer:
12.13%
Explanation:
Calculation to determine what the market believe that 2-year securities will be yielding 4 years from now using a geometric average
Yield=((1+6 year rate)^6/(1+4 year rate)^4)^(1/2)-1
Yield =((1+7.7%)^6/(1+5.55%)^4)^(1/2)-1
Yield =0.1213*100
Yield =12.13%
Therefore what the market believe that 2-year securities will be yielding 4 years from now
using a geometric average will be 12.13%
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income for the current year
Answer:
the bank net interest income for the current year is $140,000
Explanation:
The computation of the bank net interest income for the current year is shown below:
= (Interest earning assets × Interest rate earned)-(Interest bearing liabilities × Interest rate rate)
= $5,000,000 × 6% - $4,000,000 × 4%
=$300,000 - $160,000
= $140,000
Hence, the bank net interest income for the current year is $140,000
Type the correct answer in the box, Spell the word correctly.
Anika wants to create a visual to represent a table that shows the growth of her company's market share over a year. What type of graph would best
show this relationship?
Anika should use a________
to show the plotted points for the market share of her company by the end of each month or quarter of the year.
Answer:
Bar Chart
Explanation:
This is a good way to represent data, especially for company/business information
Gartner Manufacturing Inc. purchases a component from a Malaysian supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20%. The company's order cost is $30.00. How many orders per year will be made, when using the EOQ
Answer:
Number of orders= 28.59 = 29 orders
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 70*250= 17,500
S= $30
H= 14*0.2= $2.8
Now, using the formula:
EOQ= √[(2*17,500*30) / 2.8]
EOQ= √375,000
EOQ= 612.37 = 612
Finally, the number of orders:
Number of orders= total demand / EOQ
Number of orders= 17,500 / 612
Number of orders= 28.59 = 29 orders
1. Evaluate the situation that Mason and Shepherd find themselves in with respect to their existing employers. What are the legal and ethical issues raised
Answer:
The answer is provided in two separate headings for Mason and Shepherd with regard to the issues faced by them and how to handle them.
Explanation:
Mason
Mason's goal is start a venture by utilising the information received from the company she has worked for. This could lead to the violation of the agreement with her employer with regard to Non-competition, Non-disclosure and Development provisions.
So to tackle this situation she needs to first of all prove that the business is not a competitor of ATS. Moreover, she must refrain from coming into contact of the current customers of ATS. Finally, data kept in her office computer on the details of the new venture is currently under the ownership of ATS. Therefore, she should removed that data. Other than that she could negotiate with ATS with the help of a legal consultant.
Shepherd
Shepherd has signed an agreement with NOVA, where he is being bound to disclose all the inventions he has worked on so far. This problem is more likely on the intellectual property law.
To resolve this issue he could own his inventions by way of patent the translate engines as early as possible. While the process may take some years, it will be protected from NOVA as it would in pending status.
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation accounts for the bond using the shortcut approach.
Required:
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $300328
To Bonds Payable $250000
To Premium on Bonds payable $50328
(Being bond issued at a premium is recorded)
Interest Expense Dr $24026 ($300,328 × 8%)
Premium on bonds payable Dr $3474
To Cash $27500 ($250,000 ×11%)
(Being interest expense recorded)
These two entries should be recorded for the given situation
Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2020, Lake began operations and sold jet skis with a total price of $690,000 that cost Lake $345,000. Lake collected $230,000 in 2020, $230,000 in 2021, and $230,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,860,000 that cost Lake $1,116,000. Lake collected $620,000 in 2021, $430,000 in 2022, and $430,000 in 2023 associated with those sales. In 2023, Lake also repossessed $380,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $142,500 at the time they were repossessed. In 2020, Lake would recognize realized gross profit of:
Answer:
$115,000
Explanation:
Calculation to determine what Lake would recognize realized gross profit
First step is to calculate the Gross profit percentage
Gross profit percentage = [($690,000 − $345,000)/$690,000]
Gross profit percentage =$345,000/$690,000
Gross profit percentage =0.5*100
Gross profit percentage = 50%
Now let calculate the realized gross profit
Realized gross profit=50% × $230,000
Realized gross profit = $115,000
Therefore Lake would recognize realized gross profit of:$115,000
PLEASE HELP!! Imagine you are applying for a job as a babysitter or as a grass-cutter. Write a cover letter that tells the family why you are qualified for the job. Use a proper business letter writing format
I am a devoted babysitter. I have plenty of experience with children. I know how to cook, I am great with tools. I am very independent and have plenty of potentials. I hope you can trust me with your kids or your yard.
The following information is given from The Gathering Sound, Inc. for the month of August, 2020: Beginning raw materials inventory $21,600 Ending raw materials inventory $18,600 Beginning work in process inventory $35,000 Ending work in process inventory $37,450 Beginning finished goods inventory $29,340 Ending finished goods inventory $28,995 Raw material purchases $88,210 Direct materials used $89,300 Direct labor used $51,730 Total factory overhead applied $62,076 Calculate the Cost of Goods Sold. a. $203,106 b. $203,656 c. $201,001 d. $200,311 e. $200,656
Answer:
Explanation:
Step 1 : Cost of Goods Manufactured
Step 2 : Cost of Goods Sold
Opening Finished Goods Inventory $29,340
Add Cost of Goods Manufactured
Less Finished Goods Inventory ($28,995)
Cost of Goods Sold
5
Select the correct answer.
Which type of investment offers both capital gains and interest income?
ОА.
property
OB.
CDs
Ос.
stocks
OD
bonds
Plato
Answer:
stocks
Explanation:
stocks have both a postitiveand negitive pole its the only one that makes sence.
Answer:
Stocks
Explanation:
Stocks is the type of investment offers both capital gains and interest income.
A consumer's need to apply for a loan is escalated to a motive under which of the following conditions.
A. Crisis
B. The need is aroused to sufficient level of intensity
C. Pressure
D.Seeking satisfaction
A consumer's need to apply for a loan is escalated to a motive under The need is arous - ed to a sufficient level of intensity. Thus option B is correct.
Who are consumers?A customer is a person or an organization that is not directly involved in commercial or company performance and who expects to order or uses purchased items, commodities, or resources primarily for their personal, societal, family, or home needs.
When a need is sufficiently sparked, it transforms into a purpose. A need is a customer's perception of a certain benefit of a commodity or a service, whether the value is practical or emotional.
A person is constantly in need of many things. Some of these are emotional, while others are natural. That whenever a need is sufficiently sparked, it develops into a motive. Therefore, option B is the correct option.
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1. True or false. The first word of your answer has to be either true or false. If the first word of your answer is not true or false, you receive 0 points. If the statement is true you are finished answering. If your answer is false, briefly explain why it is false. a. "If leisure is a normal good, a rise in the wage rate must lead to an increase in the number of hours that an individual wishes to work." b. "A good is inferior only if quantity demanded falls as price falls." c. " If the income effect is greater than the substitution effect and leisure is an inferior good, the labor supply curve will be negatively sloped."
Answer:
a. FALSE, since leisure is a normal good, an increase in the wage rate will result in both substitution and income effect which will decrease the number of hours worked and increase the leisure hours.
b. TRUE
c. FALSE, if leisure is an inferior good, as rise in wages will result in more working hours and les leisure hours, meaning that the labor supply has a positive slope.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 23%, while stock B has a standard deviation of return of 29%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is 0.042, the correlation coefficient between the returns on A and B is _________. Multiple Choice 0.088 0.304 0.213 0.091
Answer:
0.304
Explanation:
The calculation has been done step by step in order to understand the final result. Note that (p) in the below working refers to the correlation coefficient between Stock A and B.
0.042 = (0.70^2)(0.23^2) + (0.30^2)(0.29^2) + 2(0.70)(0.30)(0.23)(0.29)p
0.042 = 0.0259 + 0.0076 + 0.028p
0.042 = 0.0335 + 0.028p
0.042 - 0.0335 = 0.028p
0.0085 = 0.028p
p = 0.0085 / 0.028
p = 0.304
Type the correct answer in the box. Spell all words correctly
While moving data into a data warehouse, Ivan and his team discover duplicate records in the transactional database. Which process in the
staging area is responsible for removing these duplicate records?
The data ______
process removes the duplicate data in the staging area.
Answer:
The data CLEANING process
Explanation:
The data cleaning process is used to remove the duplicate data from a data set.
What is data cleaning?The process of repairing or removing incorrect, corrupted, incorrectly formatted, duplicate, or incomplete data from a dataset is known as data cleaning.
Duplicate data is created during data collection. While combining data sets from multiple places, or when data is received from clients or multiple departments, duplicate data can be created.
The cleaning process in the staging area will remove duplicate records.
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What does ceteris paribus mean?
ОА.
other things remain unequal
OB. other things remain constant
Oc. other things remain irregular
OD. other things remain unbalanced
Ceteris paribus mean : B. other things remain constant.
What is Ceteris paribus ?Ceteris paribus was a latin word that tend to means other things remain constant or the same.
Example of Ceteris paribus is when a marketer might say "ceteris paribus, we expect sales to increase by 20% if we lower the price of our product" to show that they are assuming that all other factors affecting sales such as advertising, competition, and consumer sentiment will remain the same
Therefore the correct option is B.
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ohn Baker, a cash basis calendar year taxpayer, paid the following during the year:Social security tax (withheld from wages) $4,500Real estate taxes $3,200State income tax $3,400Special assessment for installation of sidewalks $1,140Penalty on tax underpayment $300Flat fee for automobile registration $90What itemized deduction may John claim for taxes on his return
Answer:
$6,600
Explanation:
Calculation to determine the itemized deduction that John may claim for taxes on his return
Real estate taxes $3,200
Add State income tax $3,400
Itemized deduction $6,600
($3,200+$3,400)
Therefore the itemized deduction that John may claim for taxes on his return is $6,600
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $22,770 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $474 per week, payable monthly.
2 Paid office rent for the month $1,138.
3 Purchased architectural supplies on account from Burmingham Company $1,644.
10 Completed blueprints on a carport and billed client $2,403 for services.
11 Received $885 cash advance from M. Jason to design a new home.
20 Received $3,542 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,896.
30 Paid $379 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Ayala Architects
Journal Entries:
Apr. 1 Debit Cash $22,770
Credit Common Stock $22,770
To record common stock for cash.
Apr. 2 Debit Rent Expense $1,138
Credit Cash $1,138
To record rent expense paid for cash.
Apr. 3 Debit Supplies $1,644
Credit Cash $1,644
To record Supplies paid for cash.
Apr. 10 Debit Accounts Receivable $2,403
Credit Service Revenue $2,403
To record services rendered on account.
Apr. 11 Debit Cash $885
Credit Deferred Revenue $885
To record cash receipt for services not yet rendered.
Apr. 20 Debit Cash $3,542
Credit Service Revenue $3,542
To record cash received for services rendered.
Apr. 30 Debit Salaries $1,896
Credit Cash $1,896
To record payment of salary.
Apr. 30 Debit Accounts Payable $379
Credit Cash $379
To record payment on account.
Explanation:
a) Data and Analysis:
Apr. 1 Cash $22,770 Common Stock $22,770
Apr. 2 Rent Expense $1,138 Cash $1,138
Apr. 3 Supplies $1,644 Cash $1,644
Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403
Apr. 11 Cash $885 Deferred Revenue $885
Apr. 20 Cash $3,542 Service Revenue $3,542
Apr. 30 Salaries $1,896 Cash $1,896
Apr. 30 Accounts Payable $379 Cash $379
When the price level falls, the number of dollars needed to buy a representative basket of goods Group of answer choices decreases, so the value of money rises. increases, so the value of money rises. increases, so the value of money falls. decreases, so the value of money falls.
Answer:
decreases, so the value of money rises
Explanation:
Let us assume the starting price level is $100 so here the amount that need to pay is $100 now the price level falls to $50 so again the amount that should be paid is $50 so as we can see that if there is any fall in the price level so the number of dollar would be decreased therefore the value of the money would be increased
When the price level is 50 so the consumer purchased two things
Hence, the first option is correct
1. Ownership of the 1,000 shares outstanding are evenly divided among 80 shareholders. The shareholders are 78 individuals, 10 of whom are married to each other, and two estates. Permitted 2. A domestic corporation elects S status on April 15. Retroactively effective 3. Articles of incorporation authorize 800 shares of voting common stock, 200 shares of nonvoting preferred, and no other shares. Not permitted 4. A domestic corporation elects S status on March 3. When is the earliest effective date
Answer: hello the options to your question is missing attached below are the missing options
permittedsubsequently effectivepermittedRetroactively effectiveExplanation:
1) permitted ; because the ownership is divided into less than 100 shareholders at the time .
2) subsequently effective ; Because April 15 is after 2.5 months of the beginning of the Financial year
3) Permitted : Because S status can issue voting and Non-voting stock
4) Retroactively effective : The earliest effective date is within 2.5 months of the Financial year
MM Proposition II with taxes: Group of answer choices explains how a firm's WACC increases with the use of financial leverage. reveals how utilizing the tax shield on debt causes an increase in the value of a firm. supports the argument that business risk is determined by the capital structure employed by a firm. supports the argument that the cost of equity decreases as the debt-equity ratio increases. reaches the final conclusion that the capital structure decision is irrelevant to the value of a firm.
Answer:
explains how a firm's WACC increases with the use of financial leverage.
Explanation:
According to the MM Proposition II with taxes, the cost of equity rises with the increases use of debt in the capital structure of a firm.
[tex]r_{e}[/tex] = [tex]r_{o} +( r_{o} - r_{d} )[/tex] × [tex]\frac{D}{E}[/tex]
As cost of equity increases, the firm's WACC increases also
The MM Proposition I with taxes reveals how utilizing the tax shield on debt causes an increase in the value of a firm
The Consumer Price Index (CPI) is determined each month by multiple choice 1 averaging all the prices of goods and services in the economy. estimating the prices of goods and services in the economy at the same rate as the cost of living increases. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in cities around the country. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.
Answer:
The Consumer Price Index (CPI) is determined each month by
comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.
Explanation:
The US Consumer Price Index (CPI) is an important statistical tool for identifying inflation and deflation periods in the US economy. It computes the weighted average of prices of a predetermined basket of consumer goods and services. With the CPI changes, the assessment of the general cost of living in the economy becomes easier.