Answer: A
Explanation:
A complementary good is a product that is used together with another product. Without its complement, such a good will have little value. When there is increase in the price of a particular product, the demand of its complement reduces because consumers may not be able to use the complement on its own.
Complements have negative cross elasticity of demand i.e there is increase in the demand for a product when the price of its complement reduces. If bicycles and gasoline are complements, an increase in tax on gasoline will have a negative effect on the demand for bicycle. Due to the price increase of gasoline, less people will demand for bicycle. The initial change that will occur as a result of this is that as there is a price increase for gasoline, there will be a leftward shift in the demand for bicycle. This implies that less bicycle will be demanded for.
Answer:
$71,500
Explanation:
Given that,
Preferred stock = 9,700 shares of $100 par value
Common stock outstanding = 38,800 of $1 par value
Total dividend declared and paid in 2018 worth of $120,000.
Firstly, we need to calculate the preferred stock dividend:
= 9,700 × $100 × 5%
= $48,500
Now, the amount of dividend available to common stockholder is determined by deducting the preferred stock dividend from the total dividend paid.
Amount of dividends received by the common stockholders in 2018:
= Total dividend paid -Preferred stock dividend
= $120,000 - $48,500
= $71,500
Answer: Availability of data
Explanation: The issue here in the given case is that the presenter of the data, that is, john do not have it.
In the given case John forgot to update the power point presentation leading to non availability of data that he needed to present. The first step in any process of presentation is data availability, so therefore, we can conclude that john will not be able to give his presentation.
Answer:
Cost of preferred stock = 12%
correct option is A. 12 percent
Explanation:
given data
preferred stock = $125 per share
annual dividend = $15
cost of issuing and selling = $4 per share
to find out
cost of the preferred stock
solution
we know that Cost of preferred stock is express as
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost) ...........................1
and we know Flotation cost will be here = 
= 3.20 %
so
from equation 1 we get
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost)
Cost of preferred stock = $15 ÷ ($125 - 3.20 % )
Cost of preferred stock = 0.120030
Cost of preferred stock = 12%
correct option is A. 12 percent
Answer: The average collection period of the receivables in terms of days was 73 days.
Explanation:
Given that,
Accounts Receivable at the beginning of the year = $390,000
Accounts Receivable at the end of the year = $410,000
Net credit sales during the year = $2,000,000
Average collection period of the receivables in terms of days:
Average accounts receivables = 
= 4,00,000
Net credit sales = 
= 5
∴ Accounts receivable days = 
= 73 days
The average collection period of the receivables in terms of days was 73 days.
