All categories

3 years ago

Statement

1 answer:

7 0

due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so. - PRICE CEILING ; BINDING

the government has instituted a legal minimum price of $2.70 per gallon for gasoline. - PRICE FLOOR ; BINDING

the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. - PRICE CEILING ; BINDING

You might be interested in

The only relevant difference between the curves for a monopoly and the equivalent ones for a firm in a competitive market is tha

mixas84 [53]

The only relevant difference between the curves for a monopoly and the equivalent ones for a firm in a competitive market is that marginal and average revenue slope downward for the monopolist.

What type of curve does a monopoly have?

A monopoly encounters a downward-sloping market demand curve in Panel (b).
It chooses its profit-maximizing output in its capacity as a profit maximizer.
However, after determining that quantity, it uses the demand curve to determine the price at which it can sell that output.

What is a difference between a monopoly and perfect competition ?

While in monopolistic competition, businesses produce slightly different goods, in perfect competition, businesses produce identical goods.

How does a demand curve for a monopoly differ from a demand curve for a perfectly competitive firm?

Because the monopolist is the sole company operating in the market, its demand curve is identical to the market demand curve, which is downward-sloping as opposed to the demand curve for a perfectly competitive firm.

Learn more about monopoly

brainly.com/question/5992626

#SPJ4

3 0

2 years ago

Park Co. is considering an investment that requires immediate payment of $27,000 and provides expected cash inflows of $9,000 an

Reil [10]

Answer:

IRR = 12.92%

Explanation:

The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero

If the IRR greater than the required rate of return , we accept the project for implementation

If the IRR is less than that the required rate , we reject the project for implementation

A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?

Lets Calculate the IRR

Step 1: Use the given discount rate of 10% and work out the NPV

NPV = 9000× (1-1.10^(-4)/0.1) - 27,000 =1528.78

Step 2 : Use discount rate of 20% and work out the NPV (20% is a trial figure)

NPV = 9000× 1- 1.20^(-4)/0.2 - 27000 = -3701.38

Step 3: calculate IRR

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

IRR = 10% + 1528.78/(1528.78+3701.38)× (20-10)%= 0.12923

= 0.129230153 × 100

IRR = 12.92%

3 0

3 years ago

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. (Round earning per share to 2 decimal

drek231 [11]

Answer:

Payout Ratio 69.9%

Earning Per Share $0.94

Return on the Common Stockholder Equity 12.6%

Explanations:-

Monty Corp

1. Calculation for Payout Ratio

Using this formula

Payout Ratio = Dividend Declared/Net Income

Dividend Declared = $0.70 * Shares outstanding

Shares outstanding:-

Opening ($837,500/$3) =279,167

Issued on Feb 1 5310

Treasury (4900)

Purchased Treasury on March 20 (1300)

Shares outstanding 278,277

Dividend Declared = 278277 * $0.70

= $194,793.90

Net Income = $278600

Payout Ratio = $194793.90/$278600 = 69.9%

Therefore Payout Ratio will be 69.9%

2. Calculation for Earning Per Share

Using this formula

Earning Per share =(Net Income – Preference Dividend)/Avg Common Stock shares

Net Income = $2786,00

Preference Dividend = $294,000 * 6%

= $17640

Average Common Stock shares = (Beginning Shares outstanding + Ending Shares outstanding)/2

Beginning Shares outstanding = 279,167 – 4,900 = 274,267

Ending Shares outstanding = 278,277

Average = (274,267 + 278,277)/2 = 276,272

Earning Per Share= ($278,600 - $17,640)/276,272 = $0.94

Therefore Earning per share will be $0.94

3. Calculation for Return on Common Stockholders Equity

Using this formula

Return on Common Stockholder Equity =

(Net Income – Preference Dividend)/Avg Common Stockholder Equity

Average Common Stockholder Equity = (Beginning Stockholder Equity + Ending Stockholder Equity)/2

Beginning Stockholder Equity will be:

Beginning common stock $837,500

Beginning Paid-in Capital in Excess of Stated Value on Common Stock $536,000

Beginning Retained Earnings $695,000

Treasury Stock($39,200)

Beginning Stockholder Equity $2,029,300

Ending Stockholder Equity will be:

Ending common stock ($837,500 + [5,310*$3])

=$853,430

Ending Paid-in Capital in Excess of Stated Value on Common Stock ($536,000 + [5,310 * $4]) =$557,240

Ending Retained Earnings $761,166.10

Treasury Stock ($39,200 + [1300 * $9])

=($50900)

Beginning Stockholder Equity$2,120,936.10

Calculation for Ending Retained Earnings

Using this formula

Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividend on common & Preferred stock

= $695, 000 + $278,600 – ($194,793.90 + $17,640)

= $761,166.10

Average Common Stockholder Equity = ($2,029,300 + $2,120,936.10)/2 = $2,075,118.05

Return on Common Stockholder Equity = ($278,600 - $176,40)/$2,075,118.05

Return on Common Stockholder Equity = 12.6%

Therefore the Payout Ratio is 69.9%

Earning Per Share is $0.94

Return on Common Stockholder Equity is 12.6%

3 0

3 years ago

List and briefly describe your strongest interests (the same ones you listed for your self-evaluation in the previous section).

ivolga24 [154]

hold on i gotta ask my mom

6 0

4 years ago

Which of the following statements regarding relevant (i.e. incremental) cash flows is(are) true? I. Managers should not consider

kirill115 [55]

Ll AND lll ONLY !!!!!!!!

7 0

3 years ago