<span>To record this transaction it would be an asset is debited, and a revenue is credited. </span>
Answer:
The quota system is not efficient since the total supply is less than the equilibrium quantity. This will produce a deadweight loss which equals the lost supplier surplus plus the lost consumer surplus. The deadweight loss s the area between the demand and supply curve, and between the imposed quota and the equilibrium quantity.
Graph 1 shows the market equilibrium while graph 2 shows the deadweight loss.
Answer:
"Stop-loss order" is the right answer.
Explanation:
According to the question,
Purchase price,
= $50
Current selling price,
= $80
Current gains,
= $30
- Investors begin to give their earnings if somehow the market capitalization begins to fall beneath $80. In advance to minimize this, we need to set a purchase requisition of $80 for stop-loss.
- So whenever the market decreases beyond $80, with us investments are traded, and thereby the existing profits of $30 have been safeguarded.
Thus, the above is the correct explanation.
Answer:
8.15%
Explanation:
The computation of the weighted average cost of capital as follows;
= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity
= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100
= 1.37% + 0.60% + 6.19%
= 8.15%
