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3 years ago

6

Total profit is maximized a. where the difference between total revenue and total cost is greatest. b. at that output level wher

e marginal revenue equals average cost. c. where total revenue is at a maximum. d. at the point where all variable costs are covered.

1 answer:

Bess [88]3 years ago

4 0

I believe that the correct answer is b

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Here I Sit Sofas has 7,100 shares of common stock outstanding at a price of $94 per share. There are 600 bonds that mature in 30

Zinaida [17]

Answer:

Weight of debt = 57.83 %

Explanation:

given data

number of shares = 7,100

price = $94 per share

number of bonds = 600

mature time = 30 year s

coupon rate = 6.8 percent

bonds par value = $2,000

sell = 108.5 percent

stock outstanding = 6,000 shares

stock outstanding price = $47 per share

to find out

capital structure weight of the debt

solution

first we get here Equity market value that is express as

Equity market value = number of shares × price per share

Equity market value = 7100 × $94

Equity market value = $667,400

and

current debt value will be here as

current debt value = number of bonds × price per bond

current debt value = 600 × (1.085 × 2000)

current debt value = $1,302,000

and now Preferred stock value will be

Preferred stock value = stock outstanding × stock outstanding price

Preferred stock value = 6,000 × $47

Preferred stock value = $282000

and total capital will be as

Total capital = Equity market value + current debt value + preferred stock value ..................1

put here value

Total capital = $667,400 + $1,302,000 + $282000

total capital = $2251400

so here Weight of debt will be

Weight of debt = debt value ÷ total capital ..............2

Weight of debt = $\frac{1,302,000}{2251400}$

Weight of debt = 0.578306

Weight of debt = 57.83 %

6 0

3 years ago

9. A bank loaned York Construction Company $35,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry

Rudiy27

Answer: The correct answer is c. increase in Discount on Notes Payable for $2,100.

Explanation: 6% of $35,000 for a year is $2,100. From the facts in the question, the Bank deducted the interest in advance, this means the net cash York Construction Company got was $35,000 - 2,100 = $32,900 but note that this does not change the principal amount obligation the Company is obliged to pay the bank, which remains $35,000. What the Company needs to do is to recognize the $35,000 as Notes Payable (Debit Cash and Credit Notes Payable) and recognize a Discount on Notes Payable of $2100 (Debit Discount on Notes Payable and Credit to Cash). Subsequently, based on the 1-year tenor, the Company would unwind the discount to finance charge / interest expense as $2,100 / 12 = $175 monthly (Debit Interest expense; Credit Discount on Notes Payable).

4 0

2 years ago

Suppose economies A and B have the same initial level of GDP per capita at $15,000, and each economy begins with a constant grow

Zinaida [17]

Answer:

If we made the assumption that both countries had a per capita of $15,000 in 1960, country A, which entered an era of political stability, and applied liberal reforms, growing at a rate of 5%, would double its GDP per capita by 1975, reaching a GDP per capita of $31,183.92.

On the contrary, country B, which continued to grow by 1% per year, would only double its GDP per capita by 2030, reaching a figure of $30,101.45.

Therefore, it would take 55 years more for country B to double its per capita GDP level compared to country A.

4 0

3 years ago

A customer purchases an item from an e-commerce site. The e-commerce site must maintain proof that the data exchange took place

tatiyna

Answer:

c. nonrepudiation of the transaction

Explanation:

Based on the information provided within the question it can be said that the feature of digital signatures that is required is a nonrepudiation of the transaction. This refers to an assurance that the individual in question cannot deny that they made the transaction in question. This protects both the buyer and the seller as it prevents fraud and provides proof of the transaction.

3 0

3 years ago

Saan ka nga ba makakaapi ng mga isyu

hram777 [196]

What in the language I don’t know how to speak

6 0

2 years ago