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3 years ago

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then Select one:

Business

1 answer:

zhannawk [14.2K]3 years ago

3 0

Answer:

b. Iowa has a comparative advantage in the production of corn.

Explanation:

Iowa's opportunity cost of corn means, for Iowa, the value of the products they need to give up in order to produce corn.

For example, given 2 crops, corn and banana, which have equal price.

Given the fixed amount of resources, to produce a ton of corn, Iowa has to give up 0.5 ton of banana, while Oklahoma has to give up 1 ton of banana. This means Iowa's opportunity cost of corn is lower that that of Oklahoma so Iowa has a comparative advantage in the production of corn.

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In Florida it is customary for the seller to pay the document tax on the deed. If the sale price is $115,000, how much will the

Dennis_Churaev [7]

Answer:

805

Explanation:

The document tax which is to be paid by the seller in Florida on deed is $0.70 per $100 of the sale value.Based on this, the document tax on the sale price of $115,000 shall be calculated as follows:

Document tax=(Sale value/100)*0.70

Sale value=$115,000

Document tax=(115,000/100)*0.70

=1,150*0.70

=805

4 0

3 years ago

At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The

Zepler [3.9K]

Answer:

The multiple choices are:

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

The correct option is A,$200 million

Explanation:

The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:

Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities

increase in cash in the year=$325+($500-$100)-$600=$125 million

cash at the end of the year=$125 +$75=$200 million

6 0

3 years ago

TP5. <br> LO 7.2How might service industries predict revenue?

dalvyx [7]

Answer:

Budgeting, forecasting and planning

Explanation:

Service industries uses budgeting, which includes expected sales and operational cost, to forecast, plan and predict revenue. With regards to forecasting; historical or past company data are used to make sound prediction.

5 0

3 years ago

According to Larry Marder, the president of the McFarlane Companies, the company has changed and morphed and grown over the year

cricket20 [7]

Answer:

Unrelated Diversification

Explanation:

The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.

8 0

3 years ago

GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi

AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

= 8.00 % x (1 - 0.35)

= 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

= 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0

3 years ago