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soldi70 [24.7K]
3 years ago
8

2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J

asmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement
Business
1 answer:
cestrela7 [59]3 years ago
4 0

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

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Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 123 - 3Q. The total cost function f
Varvara68 [4.7K]

The price changed in this market will be mathematically given as

P=93

<h3>What is the price change in this market?</h3>

P = 123 - 3Q

Generally, the equation for the statement is  mathematically given as

P = 123 - 3Q

Therefore

\frac{d \pi}{ d \Q1}=123-6Q1-30Q2-3=0

Where

Q1=120-3Q2/6

Hence

Q1=120-3(120-3Q1/6)/6

Q1=13.333

In conclusion,

P = 123 - 3(2*13.333)

P=93

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5 0
1 year ago
A company faces two kinds of risk. An example of a firm-specific risk is the risk that a competitor might enter its market and t
denis23 [38]

Answer:

true

FALSE

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.

8 0
3 years ago
Costs being equal, when a firm has a higher value gap than its competitor, it can be inferred that the firm:
Ronch [10]
Can charge a premium price for its items or goods and also for administrations charges usually termed as services .   
Since clients need to see items as being justified regardless of the higher sticker price, a business must endeavor to make an esteem observation. Alongside making an excellent item, proprietors ought to guarantee their showcasing endeavors, the item's bundling and the store's stylistic theme all join to help the superior cost.
6 0
3 years ago
Inventory Valuation under Variable Costing Lane Company produced 50,000 units during its first year of operations and sold 47,30
otez555 [7]

Answer:

1. $5.62

2. $15,174

Explanation:

1. The computation of the cost of one unit of product under variable costing is shown below:-

Total product cost = Direct material + Direct labor + Variable overhead

= $123,000 + $93,000 + $65,000

= $281,000

Unit product cost = Total product cost ÷ Produced units

= $281,000 ÷ $50,000

= $5.62

2. The computation of cost of ending inventory under variable costing is shown below:-

Unsold at end = Unit produced - Unit sold

= 50,000 - 47,300

= 2,700

Cost of ending inventory = Number of units sold × Unit product cost

= $5.62 × 2,700

= $15,174

3 0
3 years ago
Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey Inc. 50,000 additional shares in 2020 if Massey
Tpy6a [65]

Answer:

4. $3.00...$2.73

Explanation:

Basic EPS = Net income/average number of shares outstanding

                 = 1500000/500000

                 = $3 per share

Diluted EPS = 1500000/(500000 + 50000)

                    = $2.73 per share

Therefore, Colt should report earnings per share for 2018:

Basic Earnings Per Share of $3

Diluted Earnings Per Share of $2.73

4 0
3 years ago
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