Answer:
Cash flows tell us about the company’s actual outflows and inflows of cash in particular period such as quarter or year or others. This very important for business as cash flow from main operations helps the company to see whether they are generating enough to invest in growth projects or not.
Answer:
the return on common shares is 6.99%
Explanation:
The computation of the return on common shares is shown below:
= Dividend ÷ Stock price + growth rate
= $1.25 ÷ $27.22 + 2.4%
= 6.99%
hence, the return on common shares is 6.99%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
B. The Sherman Act allows the US government to regulate activities that restrain competition and trade
Explanation:
The Sherman Antitrust Act of 1890 was first legislation enacted by US congress. It was brought into force to regulate competition and trade among enterprises. This act prohibits agreement in restraint of trade or interference of power in trade like price fixing, bid rigging, etc.
The Sherman Act did not work for long as it restrict the business merger and people are confused about knowing the motive of the act as it is not designed properly.
The firm will exit or leave the industry as its not making any profits.
<h3><u>CALCULATION OF THE PROFITS</u></h3>
According to the Question,
The firm produces at P = MC
Where we know,
Q = 55 units
P = $4.78
ATC or Average Total Cost = 6.76
AVC or Average Valuable Cost = 3
P > AVC so the firm produces to minimize losses at the MC = P.
Profit = ( P - ATC ) × Q
=( 4.78 - 6.76 ) × 55
= - 108.9
The profit is - 108.9 dollars per minute.
As the firm in the industry is making losses ( a negative profit ) so it will exit the industry in the long run.
To know more about competitive firms, check the given link.
brainly.com/question/28104159
#SPJ4
