Whenever price is exceed average variable costs but is less than average total costs, the firm can pay part, but not all, its fixed costs by producing.
<h3>What is price?</h3>
Price is the money paid for a service rendered or goods and services bought.
The price of a goods is determined by the number of goods or the type of an item.
Therefore, Whenever price is exceed average variable costs but is less than average total costs, the firm can pay part, but not all, its fixed costs by producing.
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Answer:
The stability of the sea cliff, rock type, etc.
Explanation:
The most significant thing which must be considered is the stability of the sea cliff, rock type, etc. because it is given in the question that the place is at a top of 50 m high sea cliff. Therefore, the cliff must be stable and strong. Moreover, this is 200 m long parallel to the coast so there will not be any difficulty in the view. Thus, only stability is the primary concern that must be considered.
Answer:
Chittenden enterprises' share price will be $16.167.
Explanation:
Chittenden Enterprises has 600 million outstanding shares.
The expected earnings at the end of the year are $970 million.
The equity cost of capital is 8%.
The constant growth rate is 5%.
Next year's dividend per share
=30%*$970 million/600 million
=$291 million/600 million
=$0.485/share
Share Price
= Dividend next year
/(Cost of Equity
-Constant growth rate
)
=$0.485/(8%- 5%)
=$16.167
Answer:
Note: See the attached excel file for the journal entries for recording events 1 to 10.
Explanation:
Also note that since the double-declining-balance depreciation is used for buildings, the depreciation rate for the building is therefore obtained as follows:
Note that double-declining-balance is a depreciation method that depreciates an asset twice the rate of the straight line depreciation method. Therefore, the double-declining-balance depreciation rate used in the excel file is calculated as follows:
Straight line depreciation rate = 1 / Number of estimated life = 1 / 10 = 0.10, or 10%
Double-declining depreciation rate = Straight line depreciation rate * 2 = 10% * 2 = 20%
The answer is true. Investments are financial commitments made to acquire assets in the hopes that their value would rise over time. Investment necessitates the loss of a current resource, such as time, money, or effort.
In the world of finance, investing is done in order to profit from the asset being put to use. A gain (profit) or loss realised through the sale of a home or investment, unrealized capital value (or loss), investment income like dividends, interest, or rental income, or a mix of capital gain and income may all be included in the return. The return may also include foreign exchange profits or losses.
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