Answer:
$10
Explanation:
The marginal rate of technical substitution (MRTS) is an economic theory that illustrates the rate at which one factor must decrease so that the same level of productivity can be maintained when another factor is increased.
DATA
Marginal Product Labor (MPL)= 12
Marginal Product Capital (MPk) = 20
Price of labor = w = 6
Price of capital = r
Solution
Marginal rate of technical substitution = MPL/MPk
Marginal rate of technical substitution = 12/20
Marginal rate of technical substitution = 3/5
At optimal choice MRTS = PL/Pk
MRTS = w/r
3/5 = 6/r
3r = 30
r = 30/3
r = 10
The answer is C i hope this helps
Answer:
a) True: Operating cycles for most businesses are less than one year.
b) True: If a business does not plan to use any of its current assets to repay a debt, then that debt is listed as long term even if it is due within a year.
c) False: The current ratio is computed by dividing current assets by net income.
d) True: The current ratio is a useful measure of a company's liquidity.
e) False: Liquidity is the ability of a business to repay liabilities in the long run.
Answer:<u> </u><u><em>Relevant cost of new preferred stock = 10.53%</em></u>
Explanation:
Given:
Dividend = $4.00 per share
Selling for = $40 per share.
Flotation costs = 5% of the selling price.
Marginal tax rate is 30%.
We can compute the cost of new preferred stocks using the following formula:
∴ Relevant cost of new preferred stock = 10.53%
Therefore, the correct option is (d)