Answer and Explanation:
An increase in the number of firms increases the demand elasticity. As the demand elasticity increases from 2 to 3 it means you could encounter less demand if product prices are increased. At a demand elasticity of -3, it is regarded as inelastic demand and a change in price will not affect the demand for the product as customers are still likely to patronize the product example gasoline. Due to its high demand, an increase in price will not readily affect the demand for it. Therefore if you are to change the price from $10 at 2 to 3 demand elasticity increase, the percentage of increase from 2 to 3 is given as.
3-2/2 X 100 = 50%
The new charge (x) at -3 demand elasticity = 50%/3 = 0.66666666
The increase in the new charge is therefore $10 + $10x = $10 + $10(0.166666) = $11.67
Answer:
8%
Explanation:
Data provided in the question
Current selling price of the preferred stock = $28
Annual dividend = $2 per share
Flotation cost = $3 per share
Firm tax rate = 40%
So by considering the above information, the cost of new preferred stock is
= Annual dividend per share ÷ (Current selling price of the preferred stock - Flotation cost)
= $2 ÷ ($28 - $3)
= $2 ÷ $25
= 8%
We simply applied the above formula so that the cost of preferred stock could arrive
When you are considering a financial institution you should consider what type of accounts you want to have, how much money you have and if you want to invest. Different financial institutions offer different rates and benefits for their members so it makes sense to figure out your options based on what you want in return.
Metta (lovingkindness/friendliness), karuna (compassion), mudita (empathetic joy), and upekkha (equanimity).
Answer:
(a) $200,100
(b) $200,100
Explanation:
The movement in the accounts receivable balance at the start and end of an accounting period is due to cash payments, additional credit sales, and any amount written off during the period.
This may be expressed mathematically as
opening balance + sales - cash collected - amount written off = closing balance
$35,100 + $361,800 - cash collected = $196,800
Cash collected = $35,100 + $361,800 - $196,800
= $200,100
