Explanation:
The preference committee members are as follows:
Member 1 prefers a to b and b to c
Member 2 prefers c to a and a to b
Member 3 prefers b to c and c to a
The order of this problem can be solved:
Preference for 1, 2 and 3 are as below:
1. a then b then c
2. c then a then b
3. b then c then
Member 1 knowing advantage , will always disagree with 2 and 3 so that he can win when it comes to vote
So, 2 and 3 in order to win , will have to cooperate with each other.
As we can see that the least suitable option according to Member 2 and Member 3 are b and a respectively. Therefore they would not consider supporting either b or a.
So the possible option of Member 2 and Member 3 supporting will be C.
Therefore both 2 and 3 will agree on C.
The predicted outcome of the game is C.
Answer:
Juanita should purchase the suit at the store across town because the total economic cost will be lowest.
Explanation:
three options:
-
local store 15 minutes away and a price of $114
- across town 30 minutes away and a price of $86
- neighboring city 1 hour away and a price of $60
Juanita makes $30 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:
total economic cost:
-
local store = $114 + [1/4 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $144
- across town = $86 + [1/2 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $131
- neighboring city = $60 + [1 hour x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $135
Juanita should purchase the skirt at the store across town because the total economic cost will be lowest ($131)
Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.
Answer:
a. $26.67
b. 2.50%
Explanation:
a. Computation of the current value of the stock is given below:-
Price of stock ÷ Required rate of return - Growth rate
= $1.20 ÷ (0.07 - 0.025)
= $1.20 ÷ 0.045
= $26.67
b. Computation of capital gains yield on this stock is shown below:-
= Required rate - Dividend yield
= 7% - ($1.20 ÷ $26.67)
= 7% - 0.04499
= 2.50%
Answer:
The answer is stockholders' equity is overstated
Explanation:
When inventories are overstated it reduces the cost of sales because the excess inventory in accounting records means the ending inventory will be higher and cost of sales will be lower.
When ending inventory is overstated, total assets and retained earnings will be overstated. And when retained earnings is overstated, stockholders' equity is also overstated because retained earnings is a line item under stockholders' equity.
Answer:
D. $1 comma 000 billion increase
Explanation:
The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.
In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.
If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.
