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3 years ago

Businesses typically enter into areas where there is competition. a. True b. False

Business

2 answers:

KengaRu [80]3 years ago

8 0

True is correct...............

Korolek [52]3 years ago

4 0

The answer is A) True. Business always falls into places where there is competition. One company is always competing for customers against other companies. They are always fighting over who has the best products.
~Silver

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3 years ago

To form a corporation, the organizers must follow the requirements set forth by the corporation code of the state in which the c

Fantom [35]

Answer: Incorporating a corporation

Explanation:

According to the question, the given process is known as incorporating the corporation. As, the incorporation is one of the type of legal process in which the organization are used the various types of corporate entities to form a corporation.

The corporation is the type of legal entity in an organization which results into the separation of investors and the owner.

According to the question, the organizers uses the proper requirement with the help of corporation code to form a proper corporation.

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3 years ago

The market demand function for corn is Qd = 5 15 - 2P and the market supply function is Qs= 5P- 6, both quantities measured in b

GaryK [48]

Answer:

The Producer surplus = 19.6.

consumer surplus = 12.25.

Aggregate supply = 31.85.

Explanation:

Normally, the demand equilibrium function equals to supply equilibrium function will get us the price which is $3 that is Qd = Qs. Hence, if we equate both function together like;

15 - 2P = 5P - 6.

15 +6 = 5P + 2P.

21 = 7P.

P = $3.

Thus, Qd = 15 - 2P= 15 - 2(3) = 15 - 6 = 9 units.

Qs = 5P - 6 = 5(3) - 6 = 15 - 6 = 9.

Therefore, if the price is going to be Increased by $4, we will have that;

Qd = 15 - 2P= 15 - 2(4) = 15 - 8 = 7 units.

=> The Producer surplus = 1/2 × 14 (4 - 1.2) = 19.6.

=> consumer surplus = 1/2 × 7 (7.5 - 4) = 12.25.

Aggregate supply = Producer surplus + consumer surplus = 19.6 + 12.25 = 31.85.

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3 years ago

Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm mainta

KATRIN_1 [288]

Answer:

Option E is correct. Pay out ratio is 73.74 %

Explanation:

Payout ratio shows how much portion of the net earning the company pay to its shareholders in form of cash dividend. Higher pay out ratio implies that company pay large portion of its earning to shareholder.

Mathematically, pay out ratio is = 1 - Retention Ratio ------ (a)

Retention ration shows portion of the earning that the company has retained for future investment or operation or growth.

Given data

Growth rate = 5 % or 0.05

Debt to equity ratio = 0.55

Assets turn over = 1.30

Profit Margin = 9 % or 0.09

Retention ration can be calculated from sustainable growth ratio formula.

Sustainable growth rate = Retention ratio x Return on equity

Sustainable growth rate means the growth rate that the company wants to maintain in future.

Retention ratio = Sustainable growth rate / Return on equity ---- (b)

Return on equity is not given the question but it can be calculated from Du Pont equation.

According to Du Pont equation,

Return on Equity = Profit Margin x Assets Turn Over x Financial leverage

Return on Equity = 0.09 x 1.30 x ( 1 + 0.55) = 0.18135

Let r be retention ratio, Then

Sustainable growth rate = (0.18135 x r)/ ( 1- (0.18135 x r))

0.05 = (0.18135 x r)/ ( 1- (0.18135 x r))

r = 0.2626 = Retention ratio

Putting the value of retention ratio in equation (a)

Payout ratio = 1 - Retention ratio = 1 - 0.2626 = 0.7374 or 73.74 %.

4 0

3 years ago

An asset has had an arithmetic return of 10.3 percent and a geometric return of 8.3 percent over the last 90 years. What return

Art [367]

Answer:

Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.

The formula is;

<em>= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1) </em>

Where;

T = Period in question

N = Total period

10 years

= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)

= 10.1 %

25 years

= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)

= 9.76%

30 years

= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)

= 9.65%

4 0

3 years ago