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3 years ago

The price-elasticity of demand coefficient, ed, is measured in terms of

1 answer:

6 0

The price-elasticity of demand coefficient measures the percentage change in demand compared to the percentage change in price. This is on a scale up to 1, with 1 meaning the demand is perfectly elastic and every change in price results in a significant change in demand.

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Jane works in the maintenance department, which supports the production department and the research department. Jane's wages are

valina [46]

<h2>Direct to the maintenance department</h2>

Explanation:

Jane here works only in the Maintenance department. The work that he does supports both Production as well as Research. We can calculate the expenses, only by associating the department of the employee.

So, the wages should be directly associated to the maintenance department only.

We cannot add one cost to multiple department and it is not the right approach of accounting system. So the below becomes invalid.

<em>Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department</em>

3 0

3 years ago

A stock has a beta of 1.4, an expected return of 17.2 percent, and lies on the security market line. A risk-free asset is yieldi

andrew-mc [135]

Answer:

the portfolio's return will be Ep(r)= 9.2 %

Explanation:

if the stock lies on the security market line , then the expected return will be

Ep(r) = rf + β*( E(M)- rf)

where

Ep(r) = expected return of the portfolio

rf= risk free return

E(M) = expected return of the market

β = portfolio's beta

then

Ep(r) = rf + β*( E(M)- rf)

E(M) = (Ep(r) - rf ) / β + rf

replacing values

E(M) = (Ep(r) - rf ) / β + rf

E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%

since the stock and the risk free asset belongs to the security market line , a combination of both will also lie in this line, then the previous equation of expected return also applies.

Thus for a portfolio of β=0.6

Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %

Ep(r)= 9.2 %

5 0

3 years ago

A $10,000 municipal bond with 10 years to maturity is purchased in the primary market at 105. The bond is sold after 2 years at

Mama L [17]

Answer: B. a 2 point capital gain

Explanation:

Municipal Bonds have to be amortized using the straight-line method and this applied to both newly issued or bonds being traded at a premium.

The bond in question is trading at 105 and so has a 5 point premium which needs to be amortized at 1 point a year for 5 years. As it was bought after two years, the amortization was 2 points which means the cost of the bond should be;

105 - 2 = 103

Yet it was sold for 105. The gain is therefore

= 105 - 103

= 2 point capital gain

7 0

3 years ago

Seminole Company began year 2017 with 23,000 units of product in its January 1 inventory costing $15 each. It made successive pu

Rom4ik [11]

This question is incomplete.

The complete question, answer & explanation for this question is given in the attachment below.

4 0

3 years ago

Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is wi

Crazy boy [7]

Answer:

Break-even point (dollars)= $234,000

Explanation:

Giving the following information:

Sales (4,000 units) $ 240,000

Variable expenses 156,000

Fixed expenses 81,900

To calculate the break-even point in dollars, first, we need to determine the selling price and unitary variable cost:

Selling price= 240,000/4,000= $60

Unitary variable cost= 156,000/4,000= $39

Now, we can calculate the break-even point:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 81,900/ [(60 - 39) / 60]= $234,000

8 0

3 years ago