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3 years ago

13

The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in __________

. quantity supplied the slope of the demand curve price the slope in the supply curve

1 answer:

Sonbull [250]3 years ago

5 0

Divided by percentage change in quantity supplied

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Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of f

Andrews [41]

Answer: SEE EXPLANATION

Explanation:

Given the following ;

Values depending on Success

$150M, $135M, $95M, $80M

Risk free rate = 5% = 0.05

Pervebtage to be lost in case of bankruptcy = 25% = 0.25

A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million

Assume a zero-coupon debt with a $100million face value

B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million

C.) Yield to maturity (YTM)

(100M÷78.87M) - 1

1.2679 - 1 = 0.2679 = 26.79%

Expected return = 5%

D.) Equity value

0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million

E.) share if no debt is issued

109.52 ÷ 10 = 10.95 per share

F.) Share price if debt of $100M is issued

99.11 ÷ 10 = 9.91 per share

The price differs because bankruptcy cost will Lower the share price.

8 0

3 years ago

Sustainability programs often find their success beyond company boundaries, thus ______ systems and _____ metrics cannot capture

AlladinOne [14]

Answer:

internal; process

Explanation:

Sustainability programs are usually used by organization for the growth of the organization, it may be interms of risk management and others however, it has to be a continuous process for it to be achieved.

It should be noted that Sustainability programs often find their success beyond company boundaries, thus internal systems and process metrics cannot capture all of the relevant numbers.

3 0

3 years ago

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly dem

Vesna [10]

Answer:

EOQ= 300 units

Annual ordering cost= $3750

Annual holding cost =$3750

Re-order point =100 units

Explanation:

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √ (2× Co× D)/Ch

EOQ = √ (2× 75× 15,000)/25

EOQ = 300 units

Annual holding cost

= EOQ/2 × holding cost per unit

= 300/2 × $25

=$3750

Annual ordering cost

= Annul demand/EOQ × ordering cost per order

=( 15,000/300)× $75

= $3750

Re-order Point

Maximum consumption × maximum lead time

=( 15,000/300)× 2 = 100 units

6 0

3 years ago

If someone stole from you ... and you stole it back ... would you technically still be stealing it ? .

dsp73

Answer:

yes that would still be stealing unless you where taking back what they stole from you but if you take a random thing that wasn't yours to begin with that would be stealing

8 0

3 years ago

Read 2 more answers

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31

Vadim26 [7]

Answer:

1. Assume no other adjusting entries are made during the year a. Tao Co. receives $10,000 cash in advance for four months of legal services on October 1, 2017, and records it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December 31, 2017, and Tao has provided legal services as planned. hat adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2017?

Step 1: Unearned Revenue has a credit balance of $10,000

Step 2: Unearned Revenue should have a credit balance of $2,500 only.

Step 3: Adjusting Journal Entry:

Debit Unearned Revenue $7,500

Credit Service Revenue $7,500

To record revenue for services performed to December 31, 2017.

2. Caden started a new publication called Contest News. Its sub subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month from July through December Assume no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2017, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account pay $24 to receive 12 monthly issues.

Step 1: Unearned Subscription Revenue has a credit balance of $2,400

Step 2: Unearned Subscription Revenue should have a credit balance of only $1,200.

Step 3: Adjusting Journal Entry:

Debit Unearned Subscription Revenue $1,200

Credit Subscription Revenue $1,200

To record subscription revenue for services performed to December 31, 2017.

Explanation:

Tao Co and Caden follow the three-step process of adjusting unearned revenue liability accounts at year-end. The purpose of the steps is to ensure that correct amounts remain as balances in the unearned revenue accounts. The steps also help to adjust the Earned Revenue account to its proper amount in recognition of goods or services provided in accordance with the accrual concept and the matching principle of generally accepted accounting principles.

8 0

3 years ago