Answer:
Gap between the supply curve and the market price.
Explanation:
Producers surplus refers to the surplus that a producer of a commodity can obtain. The producers surplus is the difference between the producer's willingness to accept the price and the actual price they have received.
Producers surplus = Actual market price - Willingness to accept the price
Graphically, it is the area between the upper portion of supply curve and the market price.
Answer:
a. It should record revenue on a monthly basis
The Revenue Recognition principle in accounting posits that revenue should only be recognized after the goods and services that the revenue was paid for, have been delivered.
Seacoast Magazine has not delivered the magazine and will do so monthly for 18 months. It should therefore apportion profits to those months and only recognize the profit after the magazines are delivered.
b. Amount of revenue for 8 issues:
= 36/ 18 issues * 8 issues
= 2 * 8
= $16
Answer:
Levered beta = Unlevered beta x (1 + (1 - T)D/E
Levered beta = 1.6 x (1 + (1 - 0.4)70/30
Levered beta = 1.6 x (1 + 0.6)70/30
Levered beta = 1.6 x (1.06)70/30
Levered beta = 3.96
Explanation:
Levered beta is also known as equity beta. It is calculated as unlevered beta multiplied by 1 + (1 - Tax rate) multiplied by debt-equity ratio of the division.
