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Yuliya22 [10]
2 years ago
8

What is the equilibrium price

Business
1 answer:
maksim [4K]2 years ago
7 0

The equilibrium price refers to the cost of goods and services for the consumer where the forces of market supply are equal to the forces of market demand.

<h3>What do you mean by Price?</h3>

A price refers to the money that needs to be paid for acquiring a particular good, product, or service.

When the supply of goods and services is equal to the demand of goods and services, it is known as an equilibrium price.

The market is in a state of equilibrium when the forces of supply and demand are equal.

Learn more about price here:

brainly.com/question/12908368

#SPJ1

You might be interested in
Oriole Company purchases Pharoah Company for $4350000 cash on January 1, 2021. The book value of Pharoah Company's net assets re
Setler79 [48]

Answer:

32,000

Explanation:

on paper and on edge 2021

6 0
3 years ago
An unlevered firm has a value of $700 million. An otherwise identical but levered firm has $50 million in debt at a 3% interest
Softa [21]

Answer:

value of the levered firm: 728.62

Explanation:

the modigliani miller proposition suggest that a leverege firm has a higher value than an unlevered firm if there is income taxes.

This is because the returns on the bedt provides a tax shield while the dividends, don't.

Vl = Vu + tc x D

Vl = 700,000,000 +50,000,000 x 3% x 40%

Vl = 700,000,000 + 600,000 = 700.6 millions

now we multiply by the grow rate to know the value in one year.

700.6 x (1 +g ) = 700.6 x 1.04 = 728,624

value of the levered firm after a year: 728.62

8 0
3 years ago
A parent acquires its subsidiary on January 1, 2019, at a cost that exceeds the subsidiary's book value by $10,000. The subsidia
klasskru [66]

Answer:

Correct answer is D $7300

Explanation:

Net income in 2019

$4,500

Net income in 2020

$3,200

Minus: Goodwill from the acquisition impaired in 2019

-$300

Minus: Goodwill from the acquisition impaired in 2020

-$100

Investment in subsidiary account

$7,300

Net income of the subsidiary company will be increasing the parent's asset value on the balance sheet, and any subsidiary's loss or goodwill impairment decreases it.

8 0
4 years ago
Read 2 more answers
Currency that derives its value from the amount printed on it rather than from the value of the paper or metal from which it is
labwork [276]

Currency that derives its value from the amount printed on it is known as fiat money.

<h3>What is fiat money?
</h3>

Fiat money is currency whose value is not backed up by any asset. The value of fiat money is dependent on the amount printed on it. This differs from representative money whose value depends on the value of the metal from which it is made from.

To learn more about money, please check: brainly.com/question/940436

#SPJ1

7 0
3 years ago
John developed a food additive that replaces processed sugars. He granted the right to use this additive to a major cereal manuf
LiRa [457]

Answer: Licensing

Explanation:

John's ingredient is his intellectual property. By giving the right regarding the usage of the ingredient to another business entity and by receiving a sales volume related <em>royalty payment</em> for each box sold, John is involved in a <em>licensing agreement</em>.

Two parties are involved in each licensing agreement: the licencor and the licencee. In this example, John is the licencor and the cereal manufacturer is the licencee.  Both of the parties sign the licensing agreement, which is active over a specified amount of time.

Licensing is not to be confused with <em>franchising</em>. It refers to a specific business model when the franchisee operates under the brand (logo and trademark) of the franchiser, but essentially keeps its independence branch-wise. Best examples are McDonald's and KFC.

6 0
3 years ago
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