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3 years ago

Answer the following statements true (T) or false (F)

Business

1 answer:

marta [7]3 years ago

5 0

Answer: 1. TRUE

2. FALSE

3. TRUE

4. FALSE

5. FALSE

Explanation:

1. To calculate the Future value of an Annuity,

Future value = $\frac{Present Value, PV}{Annuity Factor}$

= $\frac{10000}{4.2124}$

= 2.373.94

2. Although the present table value and annuity value are correct, the annual payment is $16,084

3. An annuity is a series of equal payments at equal time intervals.

4. The present value of an annuity is equal to the sum of the present values for each payment.

5. This statement is false. If the factor for the present value of an annuity at 8% for 10 years is 6.7101, this implies that an annuity of ten $2,235 payments at 8% yields a present value of $15,000.

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34. Which of the following statements is correct? a. If oligopolists successfully collude, then their combined output will be eq

grandymaker [24]

Answer:

The correct answer is option d.

Explanation:

If oligopolists are able to collude successfully, they will be able to fix price and output similar to a monopoly.

In order to maximize profits, the oligopoly firms keep their prices higher than a perfectly competitive firm but lower than monopoly. The output level is kept higher than a monopoly firm but lower than a perfectly competitive firm.

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3 years ago

A party who has been induced to enter into an illegal contract because of fraud, duress, or undue influence can sue the other pa

anygoal [31]

B. False is the right answer

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4 years ago

Which statement accurately describes the effect of the federal government rapidly reducing government expenditures?

olganol [36]

The statement which accurately describes the effect of the federal government rapidly reducing government expenditures is D.Unemployment rates will increase because federal spending makes up a large part of the economy. Since the goverment keeps up money for particular economic expenses, it means that the salaries will be decreased and the level of firing people wold decrease. Therefore, companies will not be able to offer a escent salary to their new empoyees which means that unemployment rate will grow.

4 0

3 years ago

Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here.

Alexandra [31]

Answer:

Required 1.

Break even point (dollar sales) = $750,000

Required 2.

Break even point (dollar sales) = $1,250,000

Required 3.

ASTRO COMPANY

Forecasted Contribution Margin Income Statement

For Year Ended December 31, 2016

Sales $ 1,000,000

Variable costs ($ 400,000 )

Contribution margin $ 600,000

Fixed costs ($ 450,000 )

Net loss $ 150,000

Required 4.

Sales to meet target profit (dollar sales) = $1,833,333

Sales to meet target profit (unit sales) = 73,334

Explanation:

Break even point is the level of activity where a Company neither makes a profit nor a loss.

<em>Break even point (dollar sales) = Fixed Cost / Contribution Margin Ratio</em>

Where,

Contribution Margin Ratio = Contribution / Sales

= $ 200,000 / $ 1,000,000

= 0.20

Therefore,

Break even point (dollar sales) = $250,000 / 0.20

= $1,250,000

<u>Assuming the machine is installed</u>

Contribution Margin Ratio = ($ 1,000,000 - $400,000) / $ 1,000,000

= $600,000 / $1,000,000

= 0.60

Therefore,

Break even point (dollar sales) = ($250,000 + $200,000) / 0.60

= $750,000

Sales to meet target profit of $200,000

Sales to meet target profit (dollar sales) = Fixed Cost + Target Profit / Contribution Margin Ratio

= ($450,000 + $200,000) / 0.60

= $1,833,333

Sales to meet target profit (unit sales) = $1,833,333 / $25

= 73,334

4 0

4 years ago

Turnips and Parsley common stock sells for $39.86 a share at a market rate of return of 9.5 percent. The company just paid their

valkas [14]

Answer:

The rate of growth of their dividend is 6.30%.

Explanation:

This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.

MV = D(1+G%)/ke

39.86 = 1.2 (1+G%)/(9.5%-G%)

G = 6.30%

4 0

4 years ago