Answer:
C. not increase proportionally with sales if the existing level of fixed assets is sufficient to support current sales.
Explanation:
The total assets comprises of current assets, fixed assets and the intangible assets
.
The current assets includes cash, stock, account receivable, etc
Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.
And, the intangible assets include patents, copyrights, goodwill, etc.
If the existing level of the fixed asset is enough to support the current assets so the projected fixed assets balance would not be increased proportionally with the increase in sales
Answer:
c. Decreases.
Explanation:
Since the demand curve for a monopolist is like a normal demand curve with a negative slope, when the output increases the price decreases, as otherwise the monopolist would not be able to sell the additional units. This is why monopolists limit their production in order to charge maximum possible prices to earn economic profits.
Hope that helps.
<span>Usually final customers pay basic list prices. A list price is what the manufacturer suggests the retail price is. This type of price is determined by supply and demand. It is usually the initial asking price. The basic price is the amount receivable by the producer from the purchaser for a good or service that is produced minus the taxes.</span>
Answer:
WACC = 5.32%
Explanation:
bond's YTM = 8%
cost of equity = 10%
tax rate = 40%
total bonds = $900,000,000
total common stocks = $100,000,000
total firm's value = $1,000,000,000
to simplify the process I will use hundreds of millions
WACC = (1/10 x 10%) + [9/10 x 8% x (1 - 40%)] = 1% + 4.32% = 5.32%
<u>Solution and Explanation:</u>
<u>The retained earning statement for the company Crane for the year 2017 is as follows:
</u>
Martinez Company
Retained Earnings Statement
For the Year Ended December 31, 2017
Retained Earnings, January 1 $2,190,000
Less: Correction of Depreciation Error $382000
Retained Earnings, January 1, as adjusted $1,808000
Add: Net Income $929000
Less: Dividends $226000
Retained Earnings, December 31 $2,511000
Retained earnings at the starting year is to be considered and depreciation and dividend amount is to be deducted whereas the net income is to be added.
