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3 years ago

Help with Economics Unit 2 Portfolio?

1 answer:

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1. Why are sports teams considering switching to a variable-pricing strategy for tickets?

Answer: The sports teams consider switching to variable pricing strategy since this strategy was proven to be effective by the application of other industries

 2. How will the change in prices affect demand for each product?

Answer: The change in prices is indirectly proportional to the demand for each product. Since the decrease in price increases the demand for the product.

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A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% ba

scZoUnD [109]

Answer:

Answer:

Dividend (D) = 4% x $100 = $4

Current market price (Po) = $18

Flotation cost (FC) = $1.50

Tax rate (T) = 40% = 0.40

Kp = D

Po-FC

Kp = $4

$18-$1.50

Kp = $4

$16.5

Kp = 0.24 = 24%

Explanation:

Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.

3 0

3 years ago

A data type is called ____________________ if the variable or named constant of that type can store only one value at a time.

masya89 [10]

Answer:

Simple

Explanation:

The arrangement of data in a file or data base where in each and every data grouping, like record, holds equal significance or are of equal importance.

Simple data types are those data types which is representative of a single value. These are used for the creation of policies

Thus a data type is referred to as simple data type wherein a constant (named) constant or any variable the same type is capable of storing only a single value at an instant of time.

4 0

3 years ago

In Part 5 of Form 940, Peterson Company reported FUTA tax liabilities as follows:

kari74 [83]

Answer:

First quarter: amount $0 date: -

Second quarter: amount $606.60 date: July 31

Third quarter: amount $0 date: -

Fourth quarter: amount $537 date: January 31

Explanation:

As per IRS, in part 5 of Form 940, Peterson Company will report FUTA tax liability by Quarter only if Total FUTA Tax after Adjustments is more than $500. So, Peterson Company is not required to pay FUTA tax until FUTA tax liability is more than $500 and if in any particular quarter the FUTA tax liability is less than $500 then the cumulative amount will be taken with the next quarter until the FUTA tax liability reaches more than $500. So first quarter will add up with quarter 2 and the FUTA tax liability will be $606.60 & third quarter will add up with fourth quarter and the FUTA tax liability will be $537.

As far as due dates are concerned, the due date of the first quarter is the month after the end of first quarter. So, for the quarter from January to March the Due Date will be April 30, from April to June the Due Date will be July 31, from July to September the Due Date will be October 31, from October to December the Due Date will be January 31.

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3 years ago

You can buy property today for $2.9 million and sell it in 5 years for $3.9 million. (You earn no rental income on the property.

nignag [31]

Answer:

a) $2, 654,000 or approximately $2.654 million

b) The investment is not attractive because the present value of the future cash flow at $2.654 million is less than the investment of $2.9 million

c) $3.413 million approximately

d) This property is attractive as the present value of $3.413 is higher than the investment of $2.9 million

Explanation:

The A part of the questions is to determine the present value of property

Information given

Future value = $3.9 million

Interest rate = 8%

The period = 5 years

The present value formula = Future value / (1+r)∧n

= $3,900,000 / 1.08∧5

= 2,654,274.46843163

= $2, 654,000 or approximately $2.654 million

b) Is the property attractive...

The investment is not attractive because the present value of the future cash flow at $2.654 million is less than the investment of $2.9 million

c) Compute a new present value based on cash flow of $190,000

The present value

= 190,000/ 1.08∧1 + 190,000/ 1.08∧3 + 190,000/ 1.08∧3 + 190,000/ 1.08∧4 +190,000/ 1.08∧5 + 3,900,000/ 1.08∧5

= 175,929.93 + 162,894.38 + 150,828.13 + 139,655.67 + 129,310.81 + 2,654,274.47= 3,412,889.38

= $3.413 million approximately

d) This property is attractive as the present value of $3.413 is higher than the investment of $2.9 million

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3 years ago

A fruit grower estimates that if he harvests his crop of oranges now, he will get 100 pounds per tree, which he can sell for $.2

12345 [234]

Answer:

At 7.5 weeks will bethe best time

it will yield a profit of 30.63 per tree

Explanation:

we will construct the formula:

p = 0.25 -0.01w

q = 100 + 10w

Now, using SOLVER we can determinate the maximum profit point at 7.5 weeks

we construct these formula in excel, we stablish we can change only the "w" and it will look for the answer.

Now we can determinate the profit at this point:

P = 0.25 - 0.01 ( 7.5) = 0.175

Q = 100 x 10 (7.5) = 175

175 x 0.175 = 30.625 = 30.63

6 0

3 years ago