Answer:
The Bert Corp. and Ernie, Inc.
The profit expected is:
= $2,875.
Explanation:
a) Data and Calculations:
The Bert Corp. Ernie, Inc.
IPO order placed 1,150 shares 1,150 shares
Underpriced by $18.00
Overpriced by $6.50
Profited expected $10,350 -$7,475
Net profit = $2,875 ($10,350 - $7,475)
b) The profit expected is generated from the underpriced stock. This profit is reduced by the increased cost incurred on the over-priced stock. Therefore, the net profit is the difference between the profit and the additional cost incurred.
The consumer will buy 56 Units
Procedure to solve
Δp = 20% of 15
Δp = 20/100 × 15
Δp = 3
e = 0.6
Formula:
e = (Δq/Δp)×p/q
0.6 = (Δq/-3)×15/50
0.6 × (-3) = Δq × 0.3
Δq = 1.8/0.3 = 6
Price decreases and quantity increases
Therefore
q' = q+Δq
q' = 50+6
q' = 56
p is the given price, q is the given quantity, Δp is the change in price, Δq is the change in quantity, e is the elasticity, q' is the new quantity.
Price Elasticity
The price elasticity of demand can be said to be an economic measure of the increase in the quantity of commodity demands or consumes in relationship to its change in price.
The price elasticity of demand refers to the percentage change in the quantity demanded of goods divided by the percentage change in the price.
Learn more about elasticity here:
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Answer:
A budget is how much you can spend
Explanation:
what i mean by that is lets say you want to buy a house for 250 thousand dollars that is your budget
<h3><u>Answer:</u></h3><h3>total cost of investment</h3>
Answer:
The answer is: $4,160
Explanation:
To calculate Dewitt Company's adjusted cash balance per books we must add: cash balance per book + notes and interest collected. Then we subtract bank service charges and NSF check.
adjusted cash balance per books = ($3,500 + $850) - ($20 + $170) =
adjusted cash balance per books = $4,350 - $190 = $4,160
The adjusted cash balance per books doesn't include deposits in transit or outstanding checks (these are included in cash balance reconciled per bank statement).
