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3 years ago

"there is no incentive for firms to enter or exit the industry in the long" run when

1 answer:

8 0

There is no incentive for firms to enter or exit the industry in the long run when there is a competitive equilibrium or perfect competition. Perfect competition is when the market price of an item is controlled by the buyers and the sellers. There are tons of people wanting to buy and selling similar products and the are all equally fighting for the same target market.

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If a cash basis business owner pays 18 months of rent expense in advance during the last month of the tax year, how is this trea

borishaifa [10]

Answer:

Check the following consideration

Explanation:

Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.

7 0

2 years ago

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respe

Lena [83]

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years Cash-flows PVF at 16% Present value

1 800,000 0.86206 68964.80

2 105,000 0.74316 78031.80

2 954,545 0.74316 <u>709379.70</u>

Total value <u>856,376.30</u>

8 0

3 years ago

If Japan has a comparative advantage in the production of microchips,how would that affect their international trade?

12345 [234]

Answer: countries would purchase microchips from japan because they are cheaper

Explanation:

6 0

2 years ago

Read 2 more answers

Which of the following perspectives of quality judges a product on the basis of how well the product performs its intended funct

Elis [28]

Answer:

The correct option is A

Explanation:

The user perspective is the one which states the quality that can judged a product on the grounds of how well the product is performing the intended function. User perspective is the perspective of the users who formally uses the product and then rate the product and judges the quality or its intended function of the product.

6 0

3 years ago

An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call (YTC) rea

myrzilka [38]

Answer: less than the coupon

Explanation:

When a bond that is bought at a premium of 205 is called before the bond matures by the issuer, this implies that the accelerated premium loss will have to be reflected in calculated yield to maturity.

It should also be noted that the YTC is the lowest among the yields for the premium bonds. Therefore, if the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be less than the coupon.

Option B is correct.

7 0

3 years ago