This allows individuals to own their creativity and innovation in a way similar to owning physical property.

The Stewart Company has $1,695,500 in current assets and $678,200 in current liabilities. Its initial inventory level is $423,87

ANEK [815]

Did you check on chegg alread

8 0

4 years ago

When companies incur selling and administrative costs, those costs ________.

9966 [12]

Answer:

increase

Explanation:

7 0

3 years ago

You are a manager for Herman Millera major manufacturer of office furniture. You recently hired an economist to work with engine

KIM [24]

Answer:

$4000 is the correct answer to the given question .

Explanation:

The marginal cost with compare to the labor can be written as

$MC\ = \frac{dQ}{dL} \\MC =\frac{d\ ( 2(K)1/2(L)1/2\ )}{dL} \\\\MC=\frac{\sqrt{K} }{\sqrt{L} }$

Here K=9 units putting this value in the previous equation we get

$MC\ = \frac{\sqrt{9} }{\sqrt{L} }$

$MC=\frac{3}{\sqrt{L} }$

We can find the value of labor by the given formula that are given below

$V *MC=\ W\\400\ *\frac{3}{\sqrt{L} }\ =120\\ L=10$

From the given question that are mention in question

Q = 2(K)1/2(L)1/2

Putting the value of K and L in the given equation we get

$Q\ =2 * \sqrt{9} \ * \sqrt{100} \\Q\ = 60$

So profit maximizing output is =$60 chairs as the chairs can be sold for the $400 each so = $60 * $400 *10=$24000 chairs

As the competitive wage of $120 for 100 units as well as the total of $8,000 on the 9 units of capital equipment

=$20000

Therefore profit-maximizing level of output =$24000-$20000=$4000

6 0

3 years ago

AMC Corporation currently has an enterprise value (EV) of $400 million and $100 million in excess cash. The firm has 10 million

algol [13]

Answer:

a. AMC's share price prior to the share repurchase is $ 50 per share

b. AMC's share price after the repurchase if its enterprise value goes up is $75.00 per share

Explanation:

a. In order to calculate AMC's share price prior to the share repurchase we would have to make the following calculation:

AMC's share price prior to the share repurchase=Market Capitalization/Number of shares outstanding

According to the given data Number of shares outstanding=10 million shares

Market Capitalization=Enterprise Value + Cash in Hand

Market Capitalization=$400 million + $100 million

Market Capitalization=$500 million

Therefore, AMC's share price prior to the share repurchase=$500 Million / 10 million shares

AMC's share price prior to the share repurchase= $ 50 per share

b. To calculate AMC's share price after the repurchase if its enterprise value goes up we would have to make the following calculation:

AMC's share price after the repurchase if its enterprise value goes up=Market Capitalization/Number of shares outstanding after repurchase

According to the given data After the share repurchase, news will come out that will change AMC's enterprise value to $600 million, hence, Market Capitalization=$600 million

Number of shares outstanding after repurchase=Number of shares outstanding-Number of shares repurchased

Number of shares repurchased= Cash used for repurchase / Market Price per share

Number of shares repurchased=$ 100 million / $ 50 per share

Number of shares repurchased= 2 million shares

Hence, Number of shares outstanding after repurchase=10 million - 2 million

Number of shares outstanding after repurchase=8 million

Therefore, AMC's share price after the repurchase if its enterprise value goes up=$600 million/ 8 million

AMC's share price after the repurchase if its enterprise value goes up=$75.00 per share

5 0

3 years ago

When Crossett Corporation was organized in January, Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative

astraxan [27]

Answer:

a. $0

The company was organized in January, Year 1. They do not have to pay dividends because the company just started operations. The cumulative dividends are only to be paid at the end of the period so there is no dividend arrear here.

b. Preferred shareholders are meant to get:

= 4,000 shares * 50 * 6%

= $12,000 per year

As they are owed $12,000 from the first year and are now owed for the second, the dividends they will get is:

= 12,000 + 12,000

Preferred Dividends = $24,000

Ordinary shareholders get what is left:

= 25,000 - 24,000

= $1,000

8 0

3 years ago