Answer: 7%
Explanation:
The following can be deduced.from the question:
Loan amount = $9,600
Equity = $9,600
Market price = $48 per share
Total investment = $19,200
Growth of Investment = 5%.
We then calculate value of the investment in a year. This.will be:
= 19,200 × 1.05
= $20,160
Interest on the loan would be:
= $9,600 * 0.03
= $288
Therefore, rate of return will be:
= (20,160 - 9,600 - 288)/9,600 - 1
= 0.07 = 7%
Answer:
A firm's ownership of vertically related activities
Explanation:
As we know that
There are two types of integration i.e horizontal and vertical
The horizontal integration is the integration in which two or more firms amalgamate dealing in the same type of business i.e their products and the level of production is same
While on the other hand the vertical integration is the integration in which the one firm acquired or purchased another firm dealing in different stages but the production level remains the same
Hence, the first option is correct
Answer:
-0.136 and $528
Explanation:
Given that
p = 50 - 0.5Q
where,
Q = 88
So, p equals to
= 50 - 0.5 × 88
= 50 - 44
= $6
As it is mentioned that
p = 50 - 0.5Q
0.5Q = 50 - p
Q = 100 - 2p
And we know that
Price elasticity of demand is
= Percentage Change in quantity demanded ÷ Percentage Change in price
So,
= -2 × (6 ÷ 88)
= -0.136
And, the revenue is
= Price × Quantity
= $6 × 88
= $528
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr$598
To Sales $560
To Cash over and short $38
(Being the cash sales are recorded and the remaining balance is credited to the cash over and short account)
2. Cash A/c Dr $1,112
Cash over and short A/c Dr $36
To Sales A/c $1,148
(Being the cash sales are recorded and the remaining balance is debited to the cash over and short account)
Answer: Options-based planning
Explanation:
The Option based planning is one of the concept that helps in maintain the flexibility of the various types of plans for making the various types of investments.
The main purpose of the option based planning is that it helps in maintaining the slack resources are are specifically used in the for of extra resource for the purpose of adapting the various types of changes and also the problems.
According to the given question, the Douclamp is one of the type of manufacturing company that basically making small level of investments on the iron ore plant.
Therefore, Douclamp is using the options based planning based on the given scenario.
