Answer:
increase its production of building stone
Explanation:
Answer:
The demand becomes less elastic.
Explanation:
The elasticity of demand, or demand elasticity, refers to how sensitive demand for a good is compared to changes in other economic factors like price or income. ... An elastic product is defined as one where a change in the price of the product leads to a significant change in the demand for that product. Elasticity is an important economic measure, particularly for sellers of goods or services, because the reflects how much of a good or service buyers will consume when the price increases or decreases. Products or services that are elastic are either unnecessary or can be easily replaced with a substitute.
Answer:
<u>Income statement of Parsons Company for the period ended December 31, 2014</u>
Amount in $ Amount in $
Service Revenue 37,000
Operating expense;
Salaries and Wages Expense 16,000
Insurance Expense 2,000
Rent Expense 4,000
Supplies Expense 1,500
Depreciation Expense <u> 1,300</u>
Total expense <u> (24,800)</u>
Net income/(loss) <u> 12,800 </u>
Explanation:
The income statement shows the income and expenses of a business. Owner's capital and drawings are elements of the business balance sheet. Other items given are elements of revenue and cost.
Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
Answer: (d.) A lump-sum tax which violates the benefits principle.
Explanation:
Here the tax is an amount, i.e. it is lump-sum and it violates benefit principle because they are not taxed according to their willingness to pay.
Also a same fee is charged from all the students irrespective of their level of activity, i.e. a lump sum tax.
Therefore it is violating the benefits principle because the fee is independent of the campus activities. A student might be receiving greater benefits than the other in terms of higher campus activities but is paying the same fee.
