Answer:
Explanation:
a) To maximise profit, we would charge a price of 7 for adults and a price of 4 for children.
Profit would be = 7 x 300 + 4 x 200
Profit = 2900
This is the maximum profit other than fixed cost
b) If we have to keep one price of the ticket, then it would be 7. This would yeild a profit of 2100
c) From the law, the adults dont get any benefit, rather the children are in best position of free ticket
d) Fixed cost wont effect the answers above as long as the price and numbers of participants wont change
Answer:
An advertising agency that provides the most complete range of services including market research, media selection, copy development, artwork and production.
Explanation:
Advertising can be described as the various strategies used to create an awareness of a product to the public. The main objective of advertising is to persuade potential customers to purchase the product.
Full service advertising offers a complete range of services which include carrying out an extensive market research on the product, a good media management, excellent design and packaging of the product.
Hiring the services of full advertising agencies creates room for a team of specialists to work together inorder to boost the sales of the product. It also provides enough time for the management of an organisation to figure out new ways to strategize their business.
Answer:
Apr 1
DR Cash $234,000
CR Common stock $63,000
CR Paid in capital in excess of par - Common Stock $171,000
<em>(To record issuance of common stock)</em>
Apr 7
DR Cash $540,000
CR Preferred stock $350,000
CR Paid in capital in excess of par - Preferred Stock $190,000
<em>(To record issuance of preferred stock)</em>
Explanation:
April 1
Cash
9,000 * 26 = $234,000
Common stock
9,000*7 = $63,000
April 7
Cash
5,000*108 = $540,000
Preferred stock
5,000*70 = $350,000
Answer:
The stock will trade for 4.30 dollars in the market
Explanation:
The stock will be valued at the discounted value of their future cash flow.
w calculate the cas flow by multiplying by the grow rate given.
Then we discount using the present value of a lump sum:
Maturity $0.5000
time 3.00
rate 0.18
PV 0.30
Then, for the entire of the dividend after year 6th we use the gordon model:
dividends / (rate - grow) and then we discount that
Y# Cashflow Discounted
0 0
1 0
2 0
3 0.5 0.304315436
4 0.825 0.425525822
5 1.36125 0.595014921
6 1.4565375 2.971555503
Total 4.296411682
Answer:
Cash Dividends - Year 2 = $84400
Explanation:
The net income of the business is usually appropriated or used for two purposes at the end of the year. It is either used to pay dividends or is retained in the business and is added to the retained earnings or both.
Thus, to calculate the dividends paid by the business in a particular year, we can calculate the change in retained earnings and deduct it from the net income.
Change in retained earnings = Ending balance of retained earnings - Beginning balance of retained earnings
Change in retained earnings = 694000 - 587400
Change in retained earnings = $106600
Thus, out of the net income of $191000, $106600 were transferred to retained earnings. So, the amount of dividends paid for the year is,
Cash Dividends - Year 2 = 191000 - 106600 = $84400
