All categories

4 years ago

Before setting your prices, it's wise to

Business

1 answer:

natulia [17]4 years ago

5 0

Answer:

<em>Before setting your prices, it's wise to research industry standards- B.</em>

You might be interested in

En la formula para hallar el capital final del interés compuesto <img src="https://tex.z-dn.net/?f=CapitalFinal%20%3D%20CapitalI

n200080 [17]

This app really needs a translate thing

3 0

3 years ago

Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distributi

enot [183]

Answer:

Walter's recognized gain is $2,000

Explanation:

Walter's gain/loss = cash distribution - basis in the partnership = $18,000 - $16,000 = $2,000

A partner (Walter) does not have to recognize income on a non-liquidating partnership distribution of property other than money. This land distribution must be treated as a sale and recorded at fair market value.

4 0

4 years ago

Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded an

ANTONII [103]

Answer:

-$210,000

Explanation:

Issued Common Stock at par for Cash $250,000

Less:

Declared and paid a cash dividend $20,000

Repayment of 6-year note payable $440,000

Net Cash provided by Financing Activities ($210,000)

8 0

4 years ago

An increase in the price of butter, a substitute good, would be most likely to cause a. a rightward shift of the demand curve fo

vesna_86 [32]

Answer:

a. a rightward shift of the demand curve for margarine

Explanation:

If the price of butter increases, consumers would demand less of butter and more of margarine. This would shift the demand curve of margarine to the right and the demand curve of butter to the left.

A substitute good is a good which can be used in place of another good. Substitute goods usually have a more elastic demand because if the price of the good increases, it can be easily substituted with another good.

The phenomenon exhibited by butter and margarine is known as cross price elasticity. It when the change in price of one good leads to a change in the quantity demanded of another good.

8 0

3 years ago

Divided Furniture Inc. has 11,000 bonds outstanding with a market price of $104 per bond. The firm also has 35,000 preferred sha

mote1985 [20]

Answer:

Market Value of equity = Price of equity*Number of shares outstanding

Market Value of equity = 36*45000

Market Value of equity = 1620000

Market Value of Bond = Par value*bonds outstanding*%age of par

Market Value of Bond = 100*11000*1.04

Market Value of Bond = 1144000

Market Value of Bond of Preferred equity=Price*Number of shares outstanding

Market Value of Bond of Preferred equity=52*35000

Market Value of Bond of Preferred equity = 1820000

Market Value of firm = Market Value of Equity + Market Value of Bond+ Market Value of Preferred equity

Market Value of firm = 1620000+1144000+1820000

Market Value of firm = 4584000

Weight of equity = Market Value of Equity/Market Value of firm

Weight of equity = 1620000/4584000

Weight of equity = 0.3534

Weight of debt = Market Value of Bond/Market Value of firm

Weight of debt = 1144000/4584000

Weight of debt = 0.2496

Weight of preferred equity = Market Value of preferred equity/Market Value of firm

Weight of preferred equity = 1820000/4584000

Weight of preferred equity =0.397

Cost of equity

Price= Dividend in 1 year/(cost of equity - growth rate)

36 = 2.2/ (Cost of equity - 0.04)

Cost of equity% = 10.11

After tax cost of debt = cost of debt*(1-tax rate)

After tax cost of debt = 8*(1-0.4)

After tax cost of debt = 4.8

Cost of preferred equity

Cost of preferred equity = Preferred dividend/price*100

Cost of preferred equity = 2.2/(52)*100

Cost of preferred equity = 4.23

WACC = After tax cost of debt*W(D)+cost of equity*W(E)+Cost of preferred equity*W(PE)

WACC = 4.8*0.2496+10.11*0.3534+4.23*0.397

WACC = 6.45%

7 0

3 years ago