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Nadya [2.5K]
4 years ago
10

City mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. based o

n their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. how much will city mission need to raise in donations?
a.more than $1,562,000

b.less than $1,225,000

c.at least $1,253,000

d.at least $1,288,000
Business
1 answer:
alekssr [168]4 years ago
4 0
Adding all the expenses together ie $450,000+$350,000+$280,000+$90,000+$118,000=$1,288,000 total expenses that they will need to raise (at least) in donations. This is a large sum of money to raise only from donations and by rights a level or various levels of government should help pay for these expenses as no one should go homeless either that or provide low cost homes for the homeless.
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If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below av
denpristay [2]

Answer:

The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.

Explanation:

A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.

In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.

3 0
3 years ago
Suppose that TapDance, Inc.’s, capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of de
stealth61 [152]

Answer:

WACC 8.53600%

Explanation:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.

And the wight of the dbet times the cost of financing after the tax shield.

Ke 0.11000

Equity weight 0.65

Kd 0.06

Debt Weight 0.35

t 0.34

WACC = 0.11(0.65) + 0.06(1-0.34)(0.35)

WACC 8.53600%

7 0
3 years ago
An investor deposits $35,000 into an IRA for her retirement in 25 years.The account pays 3.5% interest compounded continuously.
sergeinik [125]

Answer:

The value of her account after 25 years, if she stays true to the plan is:

= $152,823.31.

Explanation:

a) Data and Calculations:

Initial deposits = $35,000

Period of investment = 25 years

Interest rate per year = 3.5% compounded continuously

Annual deposit into the same account = $1,800

Period of investment = 25 at 3.5% interest rate

Total value of her IRA account after 25 years:

Future value of $35,000 =       $82,713.57

Future value of $1,800 yearly = 70,109.74

Total future value =                 $152,823.31

From an online financial calculator:

N (# of periods)  25

I/Y (Interest per year)  3.5

PV (Present Value)  35000

PMT (Periodic Payment)  0

Results

FV = $82,713.57

Total Interest $47,713.57

N (# of periods)  25

I/Y (Interest per year)  3.5

PV (Present Value)  0

PMT (Periodic Payment)  1800

Results

FV = $70,109.74

Sum of all periodic payments $45,000.00

Total Interest $25,109.74

7 0
3 years ago
The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the e
STatiana [176]

Answer:

A matter of timing

Explanation:

The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the evaluation and adjustment lags is called <u>a matter of timing.</u> The reason being that it can be difficult to time fiscal policy to shift the AD curve at the right moments.

4 0
3 years ago
Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salv
finlep [7]

Answer:

First Year Depreciation: 12,400

Second Year Depreciation: 7,440

Explanation:

straight-line depreciation \times 2 = \frac{1}{5} \times 2 = \frac{2}{5}

\left[\begin{array}{ccccc}Year&Beginning\:Book&Dep \:Expense&Acc\:Dep&Ending\:Book\\0&-&-&-&31000\\1&31000&12400&12400&18600\\2&18600&7440&19840&11160\\3&11160&4464&24304&6696\\4&6696&2678.4&26982.4&4017.6\\5&4017.6&2017.6&29000&2000\end{array}\right]

To calculate each period depreciation we multiply the book value by the double-declining rate of 2/5

At the last year, you will depreciate until salvage value is reached.

5 0
3 years ago
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