Answer:
In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplified based on the results of a much more complicated model.) Demand is given by QD = 105 − 1.5P where QD is in millions of tires per year. Supply is QS = 1.5873P − 15.87.
Explanation:
Answer:
The correct answer is B: $5,600
Explanation:
Giving the following information:
Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.
Double-declining balance method= Netbook value* (2/useful life in years)
Year 1:
Double-declining balance method= (40000-5000)*(2/10)= $7000
Year 2:
Double-declining balance method= (35000-7000)*0.20= $5,600
Answer:
False
Explanation:
The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost
For example:
Company A Company B
sales price per unit $100 $100
total costs per unit $80 $80
variable costs per unit $50 $40
<u>fixed costs per unit $30 $40 </u>
contribution margin $50 $60
Answer:
Intrinsic value is $114.30
Explanation:
Given:
Dividend paid = $8
Required rate of return = 7% or 0.07
There is no growth in dividends.
Calculate price of preferred share using DDM as shown below:
Price of preferred share = Dividend paid ÷ Required rate of return
= 8 ÷ 0.07
= $114.28 or $114.3
Therefore, price of preferred share is $114.30
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