Answer:
Casey would prefer option 1; that he pays the premiums ($8,000). Even if Casey cannot deduct his insurance premiums as medical expenses, his income will only be reduced by $8,000. If he decided to take option 2, his income would be reduced by $8,800 (= $10,000 - 12%), so he is saving $800 by taking option 1.
On the other hand, Jean would prefer option 2; that her salary is reduced by $10,000 and her employer pays the premiums. By choosing option 2, Jean is going to lose $6,500 (= $10,000 - 35%). If she chose option 1, her income would be reduced by $8,000, so she is saving $1,500 by choosing option 2.
Answer:
$9.57 per stock
Explanation:
using the dividend discount model to find the stock's current price (P₀):
P₀ = Div₁ / (Re - g)
- Div₁ = $0.70 x 1.025 = $0.7175
- Re = 10%
- g = 2.5%
P₀ = $0.7175/ (10% - 2.5%) = $0.7175/ 7.5% = $9.5667 ≈ $9.57 per stock
Answer:
F
Explanation:
We all know that it's not true. Memory is not permanent... we don't recall everything forever.
A full learning process goes way beyond the simple memorization, our brain needs to have the knowledge put into practice over and over before we can actually remember it permanently and be able to find that information back in our mind upon request.
That's the use of the homework to be able to practice newly learned skills.
Answer:
Manufacturing overhead rates based on direct labor will increase and the total overhead itself will increase as a result of the increased use of equipment instead of direct labor.
Explanation:
When overhead rates are based on direct labor and automated equipment replaces direct labor, the number of direct labor hours will decrease. This will cause an increase in the predetermined overhead rates since fewer direct labor hours will now divide the same or even an increased level of overhead. Even the overhead costs will increase from the replacement of direct labor with equipment.
Answer:
c. Inelastic demand
Explanation:
Inelastic demand means that the quantity ordered on a product is not affected by changes in price. The demand is relatively constant regardless of a change in price.
Coffee and sugar are complementary goods. Usually, price fluctuation in one of them should affect the demand of the other. In this case, changes in sugar prices have not affected the demand for coffee. If price changes do not affect demand, then the product has inelastic demand.
