True or false supply curves are created when the data from a supply schedule is graphed.

Long-term investments include:_____.A. Investments in marketable bonds that are intended to be converted into cash in the short-

Law Incorporation [45]

Answer:

B. Investments that are not readily convertible to cash or not intended to be converted to cash in the short term

Explanation:

Long term investments are assets that a firm intends to hold onto for a period exceeding one year. They include projects, and investment vehicles are expected to generate revenue for several financial periods. Long term investments are characterized by a higher degree of risk in pursuit of greater rewards.

Examples of long term investments include bonds, stocks, plants and machinery, and real estate. Long term investments such as real estate and machinery are not easily disposed. Some are never disposed.

5 0

2 years ago

Suppose that when the price of a certain commodity is p dollars per unit, then x hundred units will be purchased by consumers, w

Nataly_w [17]

Answer:

$Profit = TR- TC
= x (P) - C(x)
= x(-0.05x+38) - (0.02x^{2} + 3x + 574.77)
= -0.05x^{2} + 38x - 0.02x^{2} - 3x - 574.77
= -0.07x^{2} + 35x -574.77$

This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at

$x= -\frac{B}{2A} = -\frac{35}{2 (-0.07)} = 250$

Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is

P(250)=3800.23 hundred dollars

b. Profits are maximised at x=250 hundred units. The per unit price at this is,

$p= -0.05x + 38
= -0.05 (250) + 38
= $25.5$

7 0

3 years ago

We have acquired new furniture for the office. The invoice for $6,000 offers two ways to pay: we can pay the entire amount by Se

Drupady [299]

Answer:

6.12%

Explanation:

Calculation for How does our decision depend on the interest rate at which we can invest our funds

Present value = 6000-3060

Present value = 2940

Future value = Present value+Present Value*Numver of month* Rate of interest/ 100

3000 = 2940+2940*4/12*R/100

60 = 2940*4/12*R/100

60*12/4 = 2940*R/100

180 = 2940*R/100

180/2940 = R/100

0.061224 = R/100

Rate = 6.1224

Therefore How does our decision depend on the interest rate at which we can invest our funds is 6.1224

5 0

3 years ago

Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists o

lidiya [134]

Answer:

14.35%

Explanation:

Simon Software Co

rs= 12%

D/E = 0.25

rRF= 6%

RPM= 5%

Tax rate = 40%.

We are going to find the firm’s current levered beta by using the CAPM formula which is :

rs = rRF+ RPM

12%= 6% + 5%

= 1.2

We are going to find the firm’s unlevered beta by using the Hamada equation:

=bU[1 + (1 −T)(D/E)]

Let plug in the formula

1.2= bU[1 + (0.6)(0.25)]

1.2=(1+0.15)

1.2= 1.15bU

1.2÷1.15

1.0435= bU

We are going to find the new levered beta not the new capital structure using the Hamada equation:

b= bU[1 + (1 −T)(D/E)]

Let plug in the formula

= 1.0435[1 + (0.6)(1)]

=1.0435(1+0.6)

=1.0435(1.6)

= 1.6696

Lastly we are going to find the firm’s new cost of equity given its new beta and the CAPM:

rs= rRF+ RPM(b)

Let plug in the formula

= 6% + 5%(1.6696)

= 14.35%

3 0

2 years ago

Adams Company sells a product whose contribution margin is $10 and selling price is $25.

Karolina [17]

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point = 100 units

solution

we get here Break even point that is

Break even point = $\frac{fix\ cost}{contribution\ margin}$ ...........1

Break even point = $\frac{500}{10}$

Break even point = 50 units

but we have given break-even point is 100 units

so answer is b) False

6 0

3 years ago