Answer:
The correct answer is b) "The greater the degree of product variation, the greater is the excess capacity problem."
Explanation:
Excess capacity means that the demand for a stock is less than the quantity that the company probably could provide to the market.
- The greater the degree of product variation, the greater is the excess capacity problem.
- A lower scale of output than it has been designed for creates an excess of capacity.
Answer:
As the price level rises, firms expand their production because they can sell their output for more money.
Explanation:
As the price level rises, supply increases as firms expand production to increase profits. And as price level falls, supply falls as firm reduce production. For this reason the short-run aggregate supply curve slopes upward.
Please find attached a graph showing the short-run aggregate supply curve
Answer:
$0.26
Explanation:
diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)
net income = $330,000
preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.
weighted average outstanding shares:
- January 1 = 700,000 x 12/12 = 700,000
- March 1 = 200,000 x 10/12 = 166,666.7
- total weighted average = 866,666.7
diluted shares = 2,000 preferred stocks x 200 = 400,000
diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26
Answer:
5 years
Explanation:
Initital investment $100,000
Cash inflows 1-5 (20,000*5) ($100,000)
The payback period for this investment project is 5 years.
or
100,000/20,000=5 years
