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il63 [147K]
3 years ago
10

Suppose adding cameras to cell phones caused the demand for cell phones to increase. As a result of this investment, cell phone

producers sold more cell phones and earned more revenue. This investment most likely also _____ opportunities in the digital camera industry.
did not affect
increased
reduced
Business
2 answers:
Ket [755]3 years ago
7 0

Answer:

reduced

Explanation:

Since people had already a digital camera in their cellphones and everyone is buying a cellphone, the opportunities for the digital camera industry started to decrease since the demand for digital cameras was decreasing, since more and more people had a digital camera on their cellphones less people wanted to buy a digital camera.

marin [14]3 years ago
6 0
It will reduced the opportunities in digital camera industry

If the cell phone producers produced more phone that already have camera in it, the consumers will be less likely to buy another digital camera,

and this will lower the revenue of Digital Camera's producers and reduced their opportunities
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During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash
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Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

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2 years ago
A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance s
erma4kov [3.2K]

Answer: b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply.

Explanation:

Banks make money by loaning out money to people and companies. This means that loans are an asset to banks because it enables them to generate cash.

Kellie's Print Shop will have to pay back to loan however which means that it is a liability to them because they owe the bank.

This loan will not increase the money supply because if not explicitly stated that it does, we assume that the loan was made from bank deposits by other bank customers which means that it is already part of the money supply.

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Accessible superpremium brands
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The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto'
Galina-37 [17]

Answer:

Dividend growth rate (g) = 7% per year

Common Stock value (P0) = $23 per share

Dividend just paid (or) Last dividend (D0) = $2

Current year dividend to pay (D1) = $2.14

(a) Using the DCF approach, what is its cost of common equity?

Cost of Common Equity (R) = [D1 / P0] +g

Cost of Common Equity (R) = [$2.14 / $23] + 0.07

Cost of Common Equity (R) = 0.1630 (or) 16.30%

Cost of Common Equity (R) = 16.30%

(b) If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost of common equity using the CAPM approach?

Beta = 1.6

Risk-free rate (Rf) = 9%

Return on the Market (RM) = 13%

Calculating Firm’s Cost of Common Equity using the CAPM approach:

According to CAPM approach:

Cost of common equity (RE) = [Rf + β (RM – Rf)]

Cost of common equity (RE) = [9% + 1.6 (13% - 9%)]

Cost of common equity (RE) = [9% + 1.6 (4%)]

Cost of common equity (RE) = [0.09 + 1.6 (0.04)]

Cost of common equity (RE) = 0.154 (or) 15.4%

Cost of common equity (RE) = 15.4%

(c) If the firm’s bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?

rs= Bond rate + Risk premium

rs= 12% + 4%

rs= 16%

d. The two approaches bond-yield-plus-risk premium approach and CAPM both has lower cost of equity than the DCF method. The firm’s cost of equity estimated to be 15.9% which is the average of all the three methods.

Explanation:

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Answer:

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This cheaper labor would likely increase supply, because more producers would try to enter the market to take advantage of the cheap workers.

Finally, the lower labor costs, and the higer supply, would reduce the price of lettuce, meaning that consumers will be able to buy more lettuce for less money.

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