Answer:
Explanation:
We summarize the assets and liabilities in the classified balance sheet into various types Like assets are divided into fixed assets, current assets, and intangible assets.
Liabilities are likewise divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet which means
Total assets = Total liabilities + shareholder equity
So, the accounts which are appeared on the balance sheet are shown below:
1. Accounts Payable = Current liabilities
2. Accounts Receivable = Current assets
3. Andrew King, Capital = Stockholder equity
4. Cash = Current assets
5. Land = Fixed assets
6. Supplies = Current assets
7. Wages Payable = Current liabilities
All other are related to the income statement. Therefore, ignored it
School rules and government rules are very similar, some similarity are no steeling and drugs and an average high school with no rules would be chaotic.
Part a) The Cob Douglas production function is given as:
To show that this function is homogeneous with degree 3, we introduce be a parameter, t.
Using properties of exponents, we on tinder:
This implies that:
Simplify the exponent of t to get;
Hence the function is homogeneous with degree, 3
Part b) To verify Euler's Theorem, we must show that:
Verifying from the left:
Q•E•D
Answer:
$1.3794
Explanation:
The computation of the projected dividend for the coming year is shown below:
Last year dividend paid = Do
Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32
Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2
Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3
Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22
Now the price at year 4 is
P4 = D4 × (1+g) ÷ ( R-g )
= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )
= Do × 100.08
Use Gordon Growth Model
The Current Price of Stock is
= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4
$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)
$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )
Do = $1.045
Now
Projected Dividend for Year 1 is
= Do × 1.32
= $1.045 × 1.32
= $1.3794
Answer:
If output doubles when inputs double, the production function will be characterized by a <u>constant returns to scale</u>.
Explanation:
In economics, returns to scale refers to a long run situation that reveals to the proportionate change in output when capital and labor inputs become variable or change.
The three possible types of returns to scale are as follows:
1. Increasing returns to scale: This occurs when the proportionate change in output is greater than the proportionate change in capital and labor inputs.
2. Decreasing returns to scale: This occurs when the proportionate change in output is less than the proportionate change in capital and labor inputs.
3. Constant returns to scale: This occurs when the proportionate change in output is the same as the proportionate change in capital and labor inputs.
Based on the above explanation therefore, if output doubles when inputs double, the production function will be characterized by a <u>constant returns to scale</u>. This is because the the proportionate change (double) in output is the sames as the proportionate change (double) in inputs.
