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ivolga24 [154]
3 years ago
13

The mayor of Coast Town has determined that the best way to pay for the construction of a new library is to charge all residents

and non-residents a fee for visiting Coast Town's well-regarded beach. The mayor reasons that at current levels of visitation, the revenue generated from the beach visitation fee will pay for the new library within three years.
Which of the following pieces of information would be most useful in evaluating the mayor’s conclusion?

A) The manner in which other towns in the state have funded the construction of their libraries.
B) Whether visitors to Coast Town's beach will reduce the frequency of their visits in response to the fee.
C) How many people visited Coast Town's beach last year.
D) How many other beaches lie within convenient driving distance from Coast Town.
E) The average level of household income of residents in Coast Town.
Business
1 answer:
Gelneren [198K]3 years ago
8 0
It should be c because the mayor calculate the revenue the beach generates based on the current level of visitation. Charging a fee will no doubt reduce the amount of non-resident visitor, affecting how long it takes for the beach revenue to cover the cost of construction of the new library
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For each of the following characteristics, check which types of firm it describes: a monopoly firm, a monopolistically competiti
kobusy [5.1K]

Answer:

1. Faces a downward-sloping demand curve  

  • BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS HAVE A DOWNWARD SLOPING DEMAND CURVE

2. Has marginal revenue less than price  

  • ONLY MONOPOLIES

3. Faces the entry of new firms selling similar products  

  • NEITHER, SINCE MONOPOLISTICALLY COMPETITIVE FIRMS OFFER DIFFERENTIATED PRODUCTS, NEW COMPETITORS WILL NOT OFFER SIMILAR PRODUCTS. MONOPOLIES HAVE THE ADVANTAGE OF BARRIER ENTRIES THAT PREVENT NEW FIRMS FORM ENTERING THE MARKET.

4. Earns economic profit in the long run  

  • ONLY MONOPOLIES, BECAUSE MARKET BARRIERS PREVENT NEW FIRMS FROM ENTERING THE MARKET.

5. Equates marginal revenue and marginal cost  

  • BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS MAXIMIZE ACCOUNTING PROFITS AT THIS POINT

6. Produces the socially efficient quantity of output

  • NEITHER
3 0
3 years ago
Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 10 percent, has a YTM of 8 percent,
Degger [83]

Answer:

          Miller Bond:                    

Today:      1,166.63

1-year       1,159.83

4-years     1,135.90

9-years     1,081.11

13-years   1,018.86

14-years  1,000 (maturity)

Modigliani Bond

Today:     851.01

1-year      856.25

4-years    875.38

9-years     922.78

13-years   981.41

14-years  1,000 (maturity)

Explanation:

The present value will be the discount coupon payment and maturirty at the YTM rate:

<u>Miller Bond:</u>

The coupon payment are calcualte as ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.00 (1,000 x 10% / 2)

time      28 (14 years x 2 payment per year)

rate   0.04 (8% YTM / 2 payment per year)

50 \times \frac{1-(1+0.04)^{-28} }{0.04} = PV\\

PV $833.1532

While Maturity, using the lump sum formula

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $1,000.00

time   28 semesters

rate  0.04

\frac{1000}{(1 + 0.04)^{28} } = PV  

PV   333.48

PV coupon $833.1532  +PV maturity  $333.4775  = Total $1,166.6306

For the subsequent time we must adjust t

in one year, there will be 26 payment until maturity

50 \times \frac{1-(1+0.04)^{-26} }{0.04} = PV\\

PVcoupon $799.1385

\frac{1000}{(1 + 0.04)^{26} } = PV  

PVmaturity   360.69

Total $1,159.8277

As the bond get closer to maturity it will get closer to face value until maturity when it will equalize it.

<u>We recalculate the same formula with values of:</u>

in 4-year : then 10 years to maturity t = 20

in 9-years: then 5 years to maturity t= 10

in 13-years: 1 year to maturity t = 2

at 14 years: is maturity date so equals the face value of 1,000

<em>Remember:</em> there are two payment per year.

Same process will be done with Modigliani bond:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,000 x 8% / 2 payment per year : 40.00

time: 14 years x 2 payment per year = 28 payment

rate 10% annual rate /2 = 0.05

40 \times \frac{1-(1+0.05)^{-28} }{0.05} = PV\\

PV coupon $595.9251

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity $ 1,000.00

time   28 semester

rate  0.05

\frac{1000}{(1 + 0.05)^{28} } = PV  

PV  maturity 255.09

PV coupon $595.9251  + PV maturity  $255.0936 = Total $851.0187

and then we calcualte for the same values of t we are asked for the Miller bond.

8 0
3 years ago
George's Equipment is planning on merging with Nelson Machinery. George's will pay Nelson's shareholders the current value of th
zalisa [80]

Answer:

31 per share

Explanation:

The computation of value per share is shown below:-

Share exchange ratio = MPS of Nelson ÷ MPS of George

= $38 ÷ $31

= 1.2258

MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER

= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)

= $60,800 + $142,600 ÷ 4600 + 1,961

= $203,400 ÷ 6,561

= 31 per share

Therefore for computing the value per share we simply applied the above formula.

4 0
3 years ago
Night talking time. Everyone allowed!
Rudiy27

Answer:

if u want talk to me here I am

8 0
2 years ago
In which stage of the product life cycle is the smashburger restaurant​ concept?
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Smashburger Restaurant Concept is under the stage of GROWTH in product life cycle. They already have 370 corporate and franchise outlet all over the world which operates in 9 different countries. It is the stage wherein they are still expanding and the income is still growing.
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4 years ago
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