a) Yes, $67 exceeds the loss—minimizing output.
Using the MR
They will produce 9 units.
Profits per unit = $67 - $50 = $17
Total profit =
$153.
(b) Yes, $42 exceeds the loss—minimizing output.
Using the MR
They will produce 6 units
Loss per unit is = $42 - $47.50 = $5.50
Total loss = $33 (= 6 x $5.50), which is less than the total fixed cost of $60.
c) No, because $33 is less than AVC. If it did produce, the quantity will be 4—By producing 4 units, it would lose $78 [= 4 ($33 - $52.50)]. and if they didn't produce, it would lose only the total fixed cost of $60.
She profits more each month
Answer:
$1,140,000
Explanation:
AS AT December 2018, the market price ended at 30 USD Which is 10 USD above pre established price on the 114,000 SARs
thus compensation for the year ended 2018 will be 10 x 114,000
Answer:
31.5%
Explanation:
Given from the question kd = 7.0 %
Tax rate = 35 %
P0 = $ 28.86
Growth g = 4.9 %
D1 = $ 0.94
First find the cost of common stock by
rS = D1/P0 + g
=0.94/$28.86 + 0.49
=0.523
= 52.3%
Finally, calculate the weighted average cost of capital WACC,
using rs= 0.523,
Tax rate =43% =0.43
Equity E 100% - 43% = 57% =0.57 and
kd=7.0 % = 0.07
so WACC = (D/A)(1 - Tax rate)kd+(E/A)rs
= 0.43(1 - 0.43)(0.07) + 0.57(0.523)
0.0172 + 0.298
= 0.315
= 31.5%
