Answer:
B. firms will exit the industry
Explanation:
When the firms is producing at the minimum average total cost, the amount of profit margin that they get tend to be high. This means that they can fulfill their target profit even by producing less amount of product.
Even when the demand in the market is decreased, Such firms will most likely accumulated enough profit to survive for a long period of time before they go bankrupt. This is why the firms is very unlikely to exist the industry in a short run.
Answer:
The price as a percentage of the treasury stock is 104.23%
The price as a percentage of the BBB-rated corporate bond is 98.37%
The credit spread on the bond is 1.40%
Find detailed computations in the attached.
Explanation:
The credit spread on BBB-rated corporate bond is the difference between its effective interest rate and the interest rate on the U.S government treasury security,that is:
7.7%-6.3%=1.40%
Note that the par value of a bond is usually $1000.
Answer:
True
Explanation:
Modigliani and Miller or MM hypothesis states that dividend policy of a firm plays no role in the determination of the market value of it's stock or the market value of the firm.
As per the theory, dividend policy of a firm is irrelevant and does not affect the value of the firm.
The theory maintains that under specific set of assumptions, the capital structure of a firm and it's composition does not play any role in determining the value of a firm and no capital structure can be termed as optimal.
It further states, the value of a firm is determined by capitalizing it's expected return with the firm's average cost of capital. Also, a firm cannot change the total value of it's securities by splitting it's cash flows into different streams such as dividends or retained earnings.
A firm's value is determined by a firm's real assets and not by it's issued securities.
Answer: $47.50
Explanation:
The price pr share given debt and the number of shares if the company had both an all equity structure and a mixed structure can be expressed as;
Price per Share = Debt Value / (Number of Shares under All-equity plan - Number of shares under mixed plan)
Price per share = 109,250 / (15,000 - 12,700)
= 109,250 / 2,300
= $47.50
The benefit of packaging provided by Tylenol products by indicating implications of accidental overdose is communication benefit.
The science, art, and techniques of wrapping or safeguarding products for dispersion, stockpiling, sale, and use is known as packaging. The method of creating, assessing, and generating packages is also referred to as packaging. Product packaging is utilized by companies to communicate information. Packaging includes nutritional information, usage instructions, characteristics, and advantages. Customer support information also appears on packaging to enable customers to reach companies or communicate with it as well as provide feedback or make suggestions.
In this case packaging of Tylenol products have been done in such a way to provide useful information about its usage as well as prevent the consumers from accidental overdose as it can be associated with liver function complication. Through its packaging company is communicating with the consumers in an indirect manner.
Learn more about packaging here:
brainly.com/question/3098747
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