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3 years ago

14

The demand for all carbonated beverages is likely to be ________ the demand for dr. pepper. more elastic than perfectly elastic

compared to less elastic than perfectly inelastic compared to

1 answer:

Alona [7]3 years ago

7 0

Less elastic than the demand for dr. pepper.

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Vertical Analysis of Income Statement Revenue and expense data for Searle Technologies Co. are as follows: 20Y8 20Y7 Sales $900,

lara [203]

Answer:

Preparation of income statement is shown below:-

Explanation:

Comparative Income Statement

2018 2018 2017 2017

Amount Percent Amount Percent

Sales $900,000 100.0% $725,000 100.0%

Less:

Cost of Goods Sold $558,000 62.0% $435,000 60.0%

Gross Profit (A) $342,000 38.0% $290,000 40.0%

Selling Expense $117,000 13.0% $116,000 16.0%

Administrative

Expense $63,000 7.0% $65,250 9.0%

Total Operating

Expense (B) $180,000 20.0% $181,250 25.0%

Income from

Operation (A-B) $162,000 18.0% $108,750 15.0%

Less: Income

Tax Expense $76,500 8.5% $58,000 8.0%

Net Income $85,500 9.5% $50,750 7.0%

Formula for Computation of Percentage :- (Cost of Goods Sold or Gross Profit etc. of particular period ÷ Sales for such period)

6 0

4 years ago

Slow 'n Steady, Inc., has a stock price of , will pay a dividend next year of , and has expected dividend growth of per year

wlad13 [49]

Answer:

Slow 'and Steady cost of equity capital is <u>11%</u>.

Explanation:

Note: The question is not complete as the important data are committed. The full question is therefore provided before answering the question as follows:

Slow n' steady Inc, has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. what is your estimate of slow n steady's cost of equity capital?

The explanation to the answer is now given as follows:

The cost of equity can be calculated using the Gordon growth model (GGM) formula for calculating current stock price

The GGM has the assumption that there will be a stable dividend growth rate year after year forever.

Tje GGM formula is given as follows:

P = d1 / (r - g) ……………………………………… (1)

Where;

P = Current share price = $30

d1 = Next year dividend = $3

r = Required rate of return or cost of equity = ?

g = Expected dividend growth rate = 1%, or 0.01

Substituting the values into equation (1) and solve for r, we have:

30 = 3 / (r - 0.01)

r - 0.01 = 3 / 30

r - 0.01 = 0.10

r = 0.10 + 0.01

r = 0.11, or 11%

Therefore, Slow 'and Steady cost of equity capital is <u>11%</u>.

5 0

3 years ago

Investment is a a. small part of real GDP, so it accounts for a small share of the fluctuation in real GDP. b. small part of rea

Colt1911 [192]

Answer: Option (b) is correct.

Explanation:

Correct option: Small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.

Investment contains spending on equipment, machinery, structures and property are called as fixed investment and investment in stock. It is normally a small part of real GDP but it is responsible for the large fluctuations occur in the real GDP.

It is an important component of GDP because it increases the productivity and boosts the employment opportunities.

6 0

3 years ago

Ben gordon, inc. manufactures 2 products, wheels and seats. the company has estimated its overhead in the assembling department

zhannawk [14.2K]

The number of parts used for the wheels is,
(300,000 wheels) x (2 parts/wheel) = 600,000
For the seats,
(600,000 seats) x (3 parts/seat) = 1,800,00
From the calculation above, the ratio of wheels to total number of parts is 0.25 which means that the overhead allocated for the wheels should be equal to $165,000. The rest of the money should be for Sam, totaling to $495,000.

7 0

3 years ago

If the expected return generated by a financial asset is greater than what is required for compensating the asset's risk, the de

Elis [28]

Answer:

False

Explanation:

Arbitrage refers to buying and selling stocks, commodities, bonds, currencies, or any other type of security. This process is carried out simultaneously, and a profit is made when the purchase price is lower than the selling price. E.g. a trader that purchases gold from a European seller and immediately sells it to an Asian buyer at a slightly higher price.

As technology advances, arbitrage has become more difficult to carry out because information is available to everyone. Before, a company could purchase a good (e.g. beef) in Texas and sell it at a higher price to a buyer in New York.

4 0

4 years ago