Answer:
The firm paid taxes of $0.5 million
Explanation:
Profit margin is the percentage of net income to its sales. It is calculated as follow:
Profit Margin = ( Net profit / Sales ) x 100
20% = (Net profit / 5 million) x 100
(20/100) x 5 million = Net profit
Net profit = 1 million
EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.
net income is calculates from EBIT as follow
Net Income = EBIT - Interest expense - Tax
1 = 1.5 - $0 - Tax (ignoring the effect of financing)
Tax = $1.5 - $1
Tax = $0.5 million
Entry of new firms into monopolistically competitive industries is relatively easy because capital requirements are low. Thus the correct answer is D.
<h3>What is a monopoly?</h3>
A monopoly refers to a firm that has a single authority in the market and controls the market completely. In a monopoly, there is a single rule and an absence of competition.
Monopolistic competition describes a competitive market in which a small number of sellers give clients near alternatives. It is a market system in which a large number of enterprises compete in the same industry.
Each firm runs on its own, producing comparable but production of innovative products, with no concern for what other companies are doing. These types of firms are very easy to enter and exit the market.
Therefore, option D with low capital requirements is the correct answer.
Learn more about monopoly, here:
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Answer:
$19.80
Explanation:
The Diluted EPS of Dulce Corporation shall be determined through the following mentioned formula:
Diluted EPS=Net income/Number of outstanding shares
Net income= $4 million
Number of outstanding shares=Common stock shares+shares issued for free due to share options
Common stock shares=200,000
shares issued for free due to share options=Number of options*Intrinsic value/market price of common shares
Number of options=10,000
Intrinsic value=market price-exercise price=$25-$20=$5
Shares exercised due to share options=10,000*5/25=2,000
Diluted EPS=$4,000,000/200,000+2,000
=$19.80
Answer:
$18,287.32
Explanation:
We use the PMT formula i.e shown in the attachment below:
Data provided in the question
Present value = $0
Future value = $80,000
Rate of interest = 6%
Time period = 4 years
The formula is shown below:
= NPER(Rate;PMT;PV;-FV;type)
The future value come in negative
So, after solving this, the annual payments should be made is $18,287.32
Answer:
What do u mean by this pls be less specific