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3 years ago

We assume that the representative consumer's preferences exhibit the properties that

Business

1 answer:

LenaWriter [7]3 years ago

7 0

Answer:

c. consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundles.

Explanation:

A consumer's preference can determine the consumer utility properties between the different periods and can be measured by the tastes and preference by comparing the opportunity costs of that one item when every you buy an item.

The consumption and the leisure are both the normal goods hat the consumer likes to have diversity in his consumption patterns and have a utility related to them.

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A firm has $3,600,000 in its common stock account and $36,000,000 in its paid in capital accountThe firm issued 450,000 shares o

butalik [34]

Answer:

the issue price is $88 per share

Explanation:

The computation of the issue price is shown below:

= (Common stock + paid in capital) ÷ (Number of common shares issued)

= ($3,600,000 + $36,000,000) ÷ 450,000 shares

= $39,600,000 ÷ 450,000 shares

= $88 per share

Hence, the issue price is $88 per share

3 0

2 years ago

You want to provide spending money for your 4 year old during their college years. You can afford to deposit $600/year for the n

umka2103 [35]

Answer:

The Annual investment that you will to make will be $1,069.01

Explanation:

In order to calculate the uniform annual investment that will you have to make on the child's 8th through 17th birthdays to meet this goal, we have to make the following calculations:

First we need to calculate the Amount you have at the end of child's 8th year = 600*(1+0.05)^4 + 600*(1+0.05)^3 + 600*(1+0.05)^2 + 600*(1+0.05)^1 = $2,715.38

Therefore, Value of this amount at the end of 17th year = $2715.38 * (1+0.05)^9 = $4,212.45

So, Amount required to be saved = $16,000 - $4,212.45 = $11,787.55

Therefore, to calculate the annual investment we would have to use the following formula:

FV of annuity = P*[((1+r)^n - 1)/r]

P - Periodic payment =?

r - rate per period = 0.05

n - number of periods = 17-8 = 9

$11787.55 = P*(((1+0.05)^9 - 1)/0.05)

P = $11,787.55/11.03 = $1,069.01

The Annual investment that you will to make will be $1,069.01

8 0

3 years ago

Which type of graphic organizer would best organize your notes on how to start a small business?

Dimas [21]

My best guess is a timeline!

4 0

3 years ago

Tri Fecta, a partnership, had revenues of $367,000 in its first year of operations. The partnership has not collected on $45,800

inessss [21]

Answer: $ 155,440

Explanation:

Receipt:

Cash received from customer(367,000 - 45,800) 321,200

Investment 47,000

Borrowed money 26,000

Total Receipts 394,200

Disbursement:

Payment to vendor(240,000 - 39,600) 200,400

Salary 26,200

Interest 2,860

Insurance policy 9,300

Total Disbursement (B) 238,760

Cash balance (A - B) 155,440

7 0

3 years ago

LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce

11111nata11111 [884]

Answer:

9.72%

Explanation:

Maturity = 34

Par-value = -1000

Coupon rate = 6%

Coupon PMT = -60

Value of bond = 1152

Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)

Semi-annual Yield = 5.00%

Annual Yield = 10%

Tax rate = 40%

After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%

Cost of preferred stock = Dividend/Price = 12/120 = 10%

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 3.72 + 0.94*6

Cost of equity = 9.36%

Particulars Value per No of Market Weight Cost of Product

security securities value security

Bonds 1162 100000 116200000 0.15784 11 1.736213

P. stock 120 1000000 120000000 0.16299 10 1.62999

Equity 100 5000000 500000000 0.6792 9.36 6.35697

736200000 1 9.72317

So, the WACC of the firm is 9.72%

3 0

3 years ago