Answer:
C) marginal revenue will be greater than marginal cost.
Explanation:
A monopolistic competition is when there are many buyers of differentiated goods. The demand curve of a monopolistic competition is downward sloping. This downward sloping demand curve indicates that there's a negative relationship between price and quantity demanded.
If Susan increases her price to $15, all things being equal, Quanitity demanded would fall and her profit would fall.
At the profit maximising price of $12, marginal revenue is equal to marginal cost. So if price is increased to $15, marginal revenue would exceed marginal cost.
I hope my answer helps you
Answer: beg book value +the salvage value) / 2.
(the sum of annual average book values) ÷ asset’s life
(beg book value +the end book value) ÷ 2.
Explanation:
Depreciation is simply when an asset begin to wear and tear and thereby its value is reduced.Straight line depreciation is calculated when the difference between the cost of an asset and the expected salvage value is divided by the number of years it is projected to be used.
Using this method, the annual average investment can be calculated as:
• beg book value +the salvage value) / 2.
• (the sum of annual average book values) ÷ asset’s life
• (beg book value +the end book value) ÷ 2.
Answer: 6%
Explanation:
Based on the information given, when the flotation costs is ignored, the company's cost of preferred stock will be calculated thus:
Cost of preferred stock = Dividend on preferred stock / Price of preferred stock
Cost of preferred stock = 4.5/75 = 0.06 = 6%
Therefore, the cost of preferred stock is 6%.
Answer:
D.net income (loss), common stock, and dividends
Explanation:
Stockholder´s equity statement: It is a financial statement that shows all the changes in the value of stockholder´s equity in a particular period of time. It includes comprehensive income, unlike the income statement. It helps in knowing the position of equity.
Statement of shareholder´s equity include the following components:
- Share capital.
- Retained earning.
- Income and dividend.
These three component affect the following item in the statement:
- Issue of share capital.
- Payment of dividends.
- Change in net income.
- Bonus share issue.
- Sale of treasury stock.
- Foreign Exchange.
- Fixed asset revaluation.
Answer:
16.30%
Explanation:
Calculation for what the percentage of the company's capital structure consists of debt
Using this formula
rs=D1/P0+g
First step is to find the D1 using this formula
D1=(1+Dividend expected grow constant rate) *+Dividend per share
Let plug in the formula
D1=(1+0.07)*$2.00
D1=1.07*$2.00
D1=$2.14
Now let find the percentage of the company's capital structure Using this formula
rs=D1/P0+g
Let plug in the formula
rs=$2.14/$23.00+0.07
rs=0.09304947+0.07
rs=0.1630*100
rs=16.30%
Therefore the percentage of the company's capital structure consists of debt will be 16.30%
