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Vaselesa [24]
2 years ago
12

Consumer surplus is: the difference between the price of a product and consumers' valuation of the last unit of the product purc

hased. the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers.
Business
1 answer:
Ipatiy [6.2K]2 years ago
8 0

Answer:

the difference between the price of a product and what consumers were willing to pay for the product.

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

For example, the highest amount I am willing to pay for a book is $20. The price of the book is $10. My consumer surplus is $20 - $10 = $10

Producer surplus is the difference between the least amount the seller is willing to sell his product and the price of the product.

I hope my answer helps you

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Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its
Andrej [43]

Answer:

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

Explanation:

Preparation of the entry to record the accrued pension liability payment to the funding agent on January 15

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

(Being to record quarterly pension Liabiltiy)

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

( Being to record the accrued pension liability payment to the funding agent)

5 0
2 years ago
Which of the following statements is correct regarding a cover letter?
Oxana [17]
The cover letter should be short and direct.
5 0
2 years ago
The current (year 0) price of the shares of Company XYZ is $50. There are 1 million shares outstanding. Next year (year 1)’s div
otez555 [7]

Answer:

1. The dividend per share in year 2 would be $2.16.

The dividend per share in year 3 would be $2.3328

2. The market value of the firm is $50 million

3. The value of the firm next year after the payout is $ 54

Explanation:

1. In order to calculate the dividend per share in year 2 and the dividend per share in year 3 we would have to make the following calculation:

dividend per share in year 2=dividend per share in year 1*(1+Growth Rate)

dividend per share in year 1=$2

Growth Rate=Retention Ratio * ROE

Growth Rate=40% * 20%

Growth Rate=8%

Therefore, dividend per share in year 2=$2*(1+8%)

dividend per share in year 2=$2.16

dividend per share in year 3=dividend per share in year 2*(1+Growth Rate)

dividend per share in year 3=$2.16(1´8%)

dividend per share in year 3=$2.3328

2. In order to calculate the current market value of the firm we would have to make the following calculation:

market value of the firm=Currect Share Price * Number of outstanding shares

According to the given data:

Currect Share Price=$50

Number of outstanding shares=1 million shares

market value of the firm=$50*1 million shares

market value of the firm=$50 million

3. In order to calculate the value of the firm next year after the payout we would have to calculate first the rate of return as follows:

value of the firm =dividend per share in year 1/rate  of return-growth rate

$50* Rate of Return - 4 = $2

Rate of Return = 6 / 50

Rate of Return =12%

Therefore, value of the firm next year after the payout=dividend per share in year 2/rate  of return-growth rate

value of the firm next year after the payout=$2.16/0.12-0.08

value of the firm next year after the payout=$ 54

3 0
2 years ago
Best font for a business document
docker41 [41]

Answer:

wats this question for bro

Explanation:

6 0
2 years ago
Read 2 more answers
Plainville Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?
devlian [24]

Answer:

Inventory cycle  = <u>Inventory </u>               x 365  days

                             Cost of goods sold      

Inventory cycle  = <u>$75,000</u>     x 365 days

                              $360,000  

                           = 76.04 days

Receivable days =  <u>Accounts receivable</u> x  365 days

                                       Sales        

                            = <u>$160,000</u>   x 365 days

                               $600,000  

                            =  97.33 days

Payable days      = <u>Accounts payable</u>  x 365 days

                              Cost of sales      

                            = <u>$25,000 </u>    x 365 days

                               $360,000  

                            = 25.35 days

Cash conversion cycle

= Inventory cycle + Receivable days - Payable days

= 76.04 days + 97.33 days - 25.35 days

=  148.0 days

Explanation:

Cash conversion cycle is calculated as raw inventory cycle plus receivable days minus payable days. Inventory cycle is the ratio of inventory to cost of goods sold multiplied by number of days in a year. Receivable days refer to the ratio of accounts receivable to sales multiplied by number of days in a year. Payable day is the ratio of accounts payable to cost of goods sold multiplied by number of days in a year.

6 0
3 years ago
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