Answer:
$30.40
Explanation:
($40 million − $2 million) / 1.25 million shares = $30.40
Price controls cap the price, but also create shortages. So some customers will be benefit because they will get the low price, but others will miss out entirely due to shortages and lose.
Answer:
A. Deducted from cash received from the sale to determine cash flows from investing activities.
Explanation:
In the indirect method, the statement of cash flows is prepared by substracting from sales revenue, the corresponding actual amounts of cash that were received.
A $50,000 gain on the sale of investments is, as the name implies, a revenue obtained from investing activities. By the indirect method, from this amount, the actual cash inflows and outflows would be added or substracted to obtain the final result.
Answer: A
Explanation: Using a financial calculator to solve the problem :
For project A with a discount rate of 11.7%
Outlay = 80,000
CF for year 1 = 34000
CF for year 2 = 34000
CF for year 3 = 34000
I = 11.7 %
NPV = 2085
For project A with a discount rate of 13.5%
Outlay = 80,000
CF for year 1 = 34000
CF for year 2 = 34000
CF for year 3 = 34000
I = 13.5%
NPV = -397.5
For project B with a discount rate of 11.7%
Outlay = 80,000
CF for year 1 = 0
CF for year 2 = 0
CF for year 3 = 114,000
NPV = 1798
For project B with a discount rate of 13.5%
Outlay = 80,000
CF for year 1 = 0
CF for year 2 = 0
CF for year 3 = 114,000
NPV = -2,032
from the above calculations, project A has a better NPV when discount rate is 11.7% and 13.5%
Answer:
C. Compulsory flu shots for all students prevents the spread of illness in the general public.
Explanation:
Positive externality: when a good or service benefits an individual which then improves society.
For example, if an individual is to be educated from school, they receive their own education, but it also benefits society.
