Investing in stocks is like gambling when:

Advertisers on facebook are charged on a pay-per-click basis for banner ads

Andreyy89

The answer would be false because they wouldnt be making any money off the ads if their paying whatever their suppose to earning

7 0

3 years ago

The goal of the managers of a publicly owned company should be to maximize the firm’s.

Rainbow [258]

The goal of the managers of a publicly owned company should be to maximize the firm’s common stock value.

<h3>What is a publicly owned company?</h3>

A public company, also known as a publicly traded company, publicly owned company, publicly listed company, or public limited company, is a company whose stock is freely listed on a stock exchange or in over-the-counter marketplaces.
A public (publicly traded) company may or may not be listed on a stock exchange (listed company), which facilitates share trading (unlisted public company).
Public companies of a certain size must be listed on an exchange in some jurisdictions.
In most cases, public companies are private enterprises in the private sector, and the term "public" emphasizes their public market reporting and trading.
A publicly traded company's managers should strive to maximize the firm's common stock value.

Therefore, the goal of the managers of a publicly owned company should be to maximize the firm’s common stock value.

Know more about the publicly owned companies here:

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7 0

2 years ago

Bond T is a zero coupon bond and has 11 years until maturity. If the yield to maturity is 10%, the Macaulay duration of this bon

defon

Answer:

11 years

Explanation:

The Macauly duration of a bond is generally calculated for coupon bearing bonds sold either at par or at premium or discount values. When we are asked about the Macauly duration of a zero coupon bond, the answer is simply the time to maturity of the bond, or the bond duration. In this case, the time to maturity is 11 years which equals the Macauly duration.

7 0

3 years ago

The following balance sheet for the Hubbard Corporation was prepared by the company:

Lera25 [3.4K]

Answer:

Assets

Current assets

Cash $64,000

Accounts receivable (net) $128,000

Inventory $164,000

Available for sale securities $24,000

Total current assets $380,000

Non-current assets

Buildings $754,000

Land $188,000

Machinery $284,000

Patent (net) $104,000

Investment in equity securities $44,000

Accumulated depreciation 259,000

Total non-current assets $1,115,000

Total assets $1,495,000

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $219,000

Current portion of long term debt $35,000

Total current liabilities $254,000

Long term liabilities

Notes payable $473,000

Total long term liabilities $473,000

Stockholders' equity

Common stock (authorized and issued

104,000 shares of no par stock) $416,000

Retained earnings $352,000

Total equity $768,000

Total liabilities and shareholders' equity $1,495,000

4 0

3 years ago

Suppose a firm has two types of customers but cannot tell which type of buyer the customer is before a purchase is made. If the

scoundrel [369]

Complete Question:

Suppose a firm has two types of customers but cannot tell which type of buyer a customer is before a purchase is made. One group of customers has an inverse demand of P = 100 – 10Q, while another group of customers has an inverse demand curve of P = 110 – 22.5Q. If the firm wanted to use a quantity discount pricing scheme, what prices should it set? Assume that the marginal cost of production is constant at $20.

A) The firm could charge $65 per unit for any quantity purchased or $60 per unit if buying 4 or more units.

B) The firm could charge $50 per unit for any quantity purchased or $40 per unit if buying 8 or more units.

C) The firm could charge $25 per unit for any quantity purchased or $20 per unit if buying 2 or more units.

D) The firm could charge $85 per unit for any quantity purchased or $75 per unit if buying 6 or more units.

Answer:

Option A. The firm could charge $65 per unit for any quantity purchased or $60 per unit if buying 4 or more units.

Explanation:

<u>Group One Customers:</u>

We will find the price and quantity by using the following relationship:

Marginal Revenue = Marginal Cost

But the first step would be to calculate marginal revenue.

<u>Step1: Calculate Marginal Revenue</u>

The price and quantity relation of group one customers is given as under:

P = 100 - 10Q

Now we will use total revenue equation which is given as under:

Revenue = Price * Quantity

Here

Price = 100 - 10Q

By putting this in the above equation, we have:

Revenue = (100 - 10Q) * Q

Revenue = 100Q - 10Q^2

Taking derivative on both sides we have:

Marginal Revenue = 100 - 2*10*Q = 100 - 20Q

Now as we know that:

Marginal Revenue = Marginal Cost

Here

Marginal Revenue = 100 - 20Q

Marginal Cost = $20

By putting values, we have:

$100 - 20Q = $20

$100 - $20 = 20Q

Q = $80 / $20 = <u>4 Units</u>

Now putting this value in the price equation we have:

Price = $100 - 10*4 = <u>$60</u>

<u>Group Two Customers:</u>

We will find the price and quantity by using the following relationship:

Marginal Revenue = Marginal Cost

But the first step would be to calculate marginal revenue.

<u>Step1: Calculate Marginal Revenue</u>

The price and quantity relation of group one customers is given as under:

P = 110 – 22.5Q

Now we will use total revenue equation which is given as under:

Revenue = Price * Quantity

Here

Price = 110 - 22.5Q

By putting this in the above equation, we have:

Revenue = (110 - 22.5Q) * Q

Revenue = 110Q - 22.5Q^2

Taking derivative on both sides we have:

Marginal Revenue = 110 - 2*22.5*Q

Marginal Revenue = 110 - 45Q

Now as we know that:

Marginal Revenue = Marginal Cost

Here

Marginal Revenue = 110 - 45Q

Marginal Cost = $20

By putting values, we have:

$110 - 45Q = $20

$110 - $20 = 45Q

Q = $90 / $45 = <u>2 Units</u>

Now putting this value in the price equation we have:

Price = $110 - 22.5*2 = <u>$65</u>

<u></u>

<h2><u>The data extracted from the above two scenario is as under:</u></h2><h2><u>For Group 1, Price is $60 and Quantity is 4 Units</u></h2><h2><u>For Group 2, Price is $65 and Quantity is 2 Units</u></h2><h2><u>Hence the option A is correct.</u></h2>

7 0

3 years ago