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3 years ago

Consumer surplus:

2 answers:

8 0

Consumer surplus is the difference between the maximum amount the consumer is willing to pay for the price of the good and the price that was actually paid by the consumer or commonly known as the current market price. The price that the consumer is willing to pay is determined by the demand curve in the market.

Gre4nikov [31]3 years ago

6 0

B. represents the maximum amount a person is willing to pay for a particular good.

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During 2018, its first year of operations, Pave Construction provides services on account of $154,000. By the end of 2018, cash

seraphim [82]

Answer:

Bad debts expenses Debit $ 11,750

Allowance for uncollectible receivables Credit $ 11,750

Explanation:

The allowance for uncollectible accounts receivables balances are calculated as a percentage of the receivable balance.

The receivable balances as at December 31, 2018 is

Services provided on account $ 154,000

Cash collections received $ 107,000

Receivables from services uncollected $ 47,000

Estimated percentage considered uncollectible 25 %

Allowance for uncollectible accounts $ 47,000 * 25 % = $ 11,750

6 0

2 years ago

After retirement, you expect to live for 24 years. You would like to have $75,000 income each year. How much should you have sav

poizon [28]

Answer:

The amount that you should have saved in your retirement account to receive this income is:

= $727,995.88.

Explanation:

a) Data and Calculations:

Expected lifespan = 24 years

Expected annual income = $75,000

Interest rate per year = 9%

The amount of savings in the retirement account to receive this income is calculated from an online financial calculator as follows:

N (# of periods) 24

I/Y (Interest per year) 9

PMT (Periodic Payment) 75000

FV (Future Value) 0

Results

PV = $727,995.88

Sum of all periodic payments = $1,800,000.00

Total Interest = $1,072,004.12

5 0

2 years ago

Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800

mrs_skeptik [129]

Answer: $1381400

Explanation:

From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.

The total value of the merged firm will be:

= (43,000 × $32) + (12,800 × $44) + $5,400 - $563,200

= $1,376,000 + $563,200 + $5,400 - $563,200

= $1,944,600 - $563,200

= $1,381,400

6 0

2 years ago

If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?

Juliette [100K]

Question:

Suppose there is a bond in ABC Company that that pays coupons of 8.5%, and suppose that these coupons are paid annually.

Suppose the face value of the ABC bond is $1000 and the maturity is 11 years.

If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?

Answer:

Price of bond = $ 1197.17

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The price of the bond can be worked out as follows:

Step 1

PV of interest payments

Annual Interest payment = 8.5%× 1000 = 85

Annual yield = 6%

Total period to maturity (in years) = 11

PV of interest =

85 × (1- (1+0.06)^(-11)/)/0.06 = 670.38

Step 2

PV of Redemption Value

= 1,000 × (1.06)^(-11) = 526.78

Step 3:

Price of bond

670.38 + 526.78= 1,197.17

Price of bond = $ 1197.17

6 0

2 years ago

Building relationship during your career explorationis called

agasfer [191]

I'm pretty sure its Networking

7 0

3 years ago

Read 2 more answers

Consumer​ surplus:

Consumer surplus: