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3 years ago

Gallons per Week Total Benefit Marginal Benefit

Business

1 answer:

Dima020 [189]3 years ago

7 0

Answer:

Marginal Benefit = 7,6,5,4,3,2,1 .

Optimal Equilibrium = 4 units of consumption

Explanation:

Marginal Benefit is addition to total benefit when an additional unit is consumed.

Marginal Benefit = Total Benefit @ n - Total Benefit @ n-1

MB = 15-8 = 7

21- 15 = 6

26 - 21 = 5

30 - 26 = 4

33 - 30 = 3

35 - 33 = 2

36 - 35 = 1

Optimal Equilibium is where Marginal Benefit = Price . Such because : before that - MB > Price , increasing consumption is better for consumer. MB< Price , decreasing consumption is better for consumer.

In this case : Price i.e $4 = MB 4 at 4th gallon . So , this is optimal equilibrium.

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The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua

kicyunya [14]

Answer:

$1.07

Explanation:

In this question ,we use the formula which is shown below:

A = P × (1 + r ÷ 100)^n

where,

P = Present value $0.90

A = Future value

rate =3%

number of years = 6

Now put these values to the above formula

So, the value would be equal to

= $0.90 × (1 + 3%)^6

= $0.90 × 1.03^6

= $0.90 + 1.194052

= $1.07

We considered all the items so that the correct dividend can come

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3 years ago

The United States Bureau of Labor Statistics (BLS) conducts the Quarterly Census of Employment and Wages (QCEW) and reports a va

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Answer:

Answer for the question:

The United States Bureau of Labor Statistics (BLS) conducts the Quarterly Census of Employment and Wages (QCEW) and reports a variety of information on each county in America. In the third quarter of 2016, the QCEW reported the total taxable earnings, in millions, of all wage earners in all 3222 counties in America.

is given in the attachment.

Explanation:

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3 years ago

Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm ex

AnnyKZ [126]

Answer:

They should not make the change because the price of the stocks will decrease.

Explanation:

the current price of the stocks using the perpetuity formula = dividend / required rate of return

current price with current capital structure = $5.64 / 0.123 = $45.85

if the company changes its capital structure by increasing debt, the price of the stocks will be

$5.92 / 0.136 = $43.53

since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.

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3 years ago

g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produ

Elis [28]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Total Years = 5, semiannually = 5 × 2 = 10

Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%

Journal Entries

On Jan 1

Cash A/c Dr. $9,594,415

Discount on bonds payable A/c Dr. $405,585

To Bonds payable A/c $10,000,000

(Being the issuance of bond payable is recorded)

Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585

2).

On Jun

Interest expenses A/c Dr. $390,559

Discount on bonds payable A/c($405,585 ÷10) Dr.40,559

To Cash A/c($10,000,0000 × 3.5%) $350,000

(Being the payment of first semiannual interest is recorded)

3).

On Dec 31

Interest expenses A/c Dr. $390,559

Discount on bonds payable A/c($405,585*10/100) Dr.$40,559

To Cash A/c($10,000,000*3.5/100) $350,000

(Being the payment of second semiannual interest is recorded)

b). Bond Interest Expense Amount for First Year

= Interest Expenses + Amortized Discount

= $700,000 + $81,117

= $781,117

Interest expenses = $350,000 + $350,000 = $700,000

Amortized Discount = $40,559 + $40,559 = $81,117

c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.

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3 years ago

Caramel Corporation has 5,000 shares of stock outstanding.

Jet001 [13]

<u>Answer and Explanation:</u>

Caramel Corporation outstanding share are 5000

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Given : caramel Corportaion has E&P of around $300,000.

E&P attributable to 1000 number of shares = $300000 * 1000 / 5000=\$ 60,000$

Therefore, the consequence of this redemption are $60,000 charge to E&P and reduction in caramel Corporation paid-in capital account is $85000 ($145000 subtract $60000)

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3 years ago