Answer: Revenue stream is growing
Explanation: Advertising has become a promotional tool to aid in revenue increase, since it is the objective of every business to maximize profit through strategic advertising, it will imply that, high sales can only be achieved through an intense advertisement. The level of competition among firms and companies is also increasing the cost of advertisement making the the advertising industry to increase its revenue.
The sales of equipment is also growing revenue because of the influence of technology on production. Technology has made production faster and cheaper. This has made it relatively cheaper for most firms to adopt than the Labour intensive system. Because of the demand to produce higher goods at cheaper cost, the demand for equipment has also gone up hence, increasing the revenue base for its dealers.
Answer:
JDW Corporation
Income statement
For the year ended December 31, 20x1
Sales $2,929,500
Cost of good sold <u>$1,786,995</u>
Gross Profit $1,142,505
Selling and Administration expenses $<u>585,900</u>
Income from Operations before tax $446,605
Income Tax <u>$116,887</u>
Net Income <u>$439,718</u>
JDW Corporation
Statement of comprehensive income
For the year ended December 31, 20x1
Net Income $439,718
Unrealized holding loss net of tax -$22,000
Foreign currency transaction adjustment $26,250
Unrealized loss from pension adjustment net of tax -<u>$7,000 </u>
Comprehensive Income <u>$436,968</u>
Answer:
Cost of external equity financing 16.64%
Explanation:
Cost of external equity financing=Div*(1+g)/P (1-F) + g
F = the percentage flotation cost=4%
Div=Dividend in the current period=$3.7
g=growth=9%
P=Market price of the stock= $55
Cost of external equity financing=3.7*(1+0.09)/(55*(1-0.04))+0.09=0.166383=16.64%
Answer:Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. In inefficient markets that is not the case; some may have too much of a resource while others do not have enough. Inefficiency can take many different forms. The government tries to combat these inequities through regulation, taxation, and subsidies. Most governments have any combination of four different objectives when they intervene in the market.
Maximizing Social Welfare
In an unregulated inefficient market, cartels and other types of organizations can wield monopolistic power, raising entry costs and limiting the development of infrastructure. Without regulation, businesses can produce negative externalities without consequence. This all leads to diminished resources, stifled innovation, and minimized trade and its corresponding benefits. Government intervention through regulation can directly address these issues.
Another example of intervention to promote social welfare involves public goods. Certain depletable goods, like public parks, aren’t owned by an individual. This means that no price is assigned to the use of that good and everyone can use it. As a result, it is very easy for these assets to be depleted. Governments intervene to ensure those resources are not depleted.
Macro-Economic Factors
Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents.
Socio-Economic Factors
Governments may also intervene in markets to promote general economic fairness. Government often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. Other examples of market intervention for socio-economic reasons include employment laws to protect certain segments of the population and the regulation of the manufacture of certain products to ensure the health and well-being of consumers.
Explanation:
ok
Answer:
option (A) $28.00
Explanation:
Data provided in the question:
Total cost of Shaniqua's plate = $7.00
Desired product cost = 25%
Now,
Let the selling price for a steak dinner be 'x'
therefore,
[(Total cost of plate) ÷ (Selling price)] × 100% = 25%
or
[ $7 ÷ x] = 0.25
or
or
x = $7 ÷ 0.25
or
x = $28
Hence,
correct answer is option (A) $28.00
