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3 years ago

A consumer will consume such that price equals marginal benefit for every good consumed because

1 answer:

monitta3 years ago

8 0

The answer is that "because utility<span> is </span>maximized"<span>.
</span>
The condition for maximization of utility describes that Utility is expanded or maximized when add up to expenses level with the financial plan accessible and when the proportions of marginal utilities to costs are equivalent for all goods and services.

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Select the correct answer.

Whitepunk [10]

Answer:

Explanation:

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3 years ago

What is it called when a person's behavior in the workplace creates circumstances that make it difficult for someone else of a p

Nataliya [291]

Discrimination because they are making it difficult for someone else of particular sex to do his/her work.

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3 years ago

PROBLEM 8–31 Completing a Master Budget Hillyard Company, an office supplies specialty store, prepares its master budget on a qu

kompoz [17]

The main purpose of the sales budget is to achieve the financials objectives of the sales department.

<h3>What is a sales budget?</h3>

This refers to a financial plan that estimates a company's total revenue in a specific time period.

<h3>What is the Schedule of expected cash collections?</h3><h3> Hillyard Company</h3><h3> Sales Budget</h3><h3> For the Quarter ended march 31</h3><h3> Jan Feb Mar Quarter</h3>

Budgeted Sales $400,000 $600,000 $300,000 $1,300,000

Total Budgeted Sales $400,000 $600,000 $300,000 $1,300,000

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6 0

2 years ago

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,

Alex_Xolod [135]

Answer:

c.the expected future returns must be equal to the required return.

Explanation:

When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return

Therefore the option c is correct

And, the other options that are mentioned in the question are incorrect

4 0

4 years ago

Deep Mines has 43,800 shares of common stock outstanding with a beta of 1.54 and a market price of $51 a share. There are 10,000

Zanzabum

Solution:

MV of equity=Price of equity*number of shares outstanding

MV of equity=51*43800

=2233800

MV of Bond=Par value*bonds outstanding*%age of par

MV of Bond=1000*5000*0.96

=4800000

MV of Preferred equity=Price*number of shares outstanding

MV of Preferred equity=83*10000

=830000

MV of firm = MV of Equity + MV of Bond+ MV of Preferred equity

=2233800+4800000+830000

=7863800

Weight of equity = MV of Equity/MV of firm

Weight of equity = 2233800/7863800

W(E)=0.2841

Weight of debt = MV of Bond/MV of firm

Weight of debt = 4800000/7863800

W(D)=0.6104

Weight of preferred equity = MV of preferred equity/MV of firm

Weight of preferred equity = 830000/7863800

W(PE)=0.1055

Cost of equity

As per CAPM , Cost of equity = risk-free rate + beta * (Market risk premium)

Cost of equity % = 3.6 + 1.54 * (7.5)

Cost of equity % = 15.15

Cost of debt

K = Nx2

Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2

k=1

K =13x2

960 =∑ [(8*1000/200)/(1 + YTM/200)^k] + 1000/(1 + YTM/200)^13x2

k=1

YTM = 8.5146699304

After tax cost of debt = cost of debt*(1-tax rate)

After tax cost of debt = 8.5146699304*(1-0.21)

= 6.726589245016

cost of preferred equity

cost of preferred equity = Preferred dividend/price*100

cost of preferred equity = 7/(83)*100

=8.43

WACC=after tax cost of debt*W(D)+cost of equity*W(E)+Cost of preferred equity*W(PE)

WACC=6.73*0.6104+15.15*0.2841+8.43*0.1055

WACC =9.3%

5 0

4 years ago