Answer:
The answer is $16 million
Explanation:
Outstanding shares = 40,000
Shares of deceased shareholder = 2,500
Amount borrowed = $1m
We calculate price per share:
This is,
1,000,000 ÷ 2,500
= $400
To get the total value of the firm:
[(40,000 - 2,500) × 400] + 1m
=(37,500 × 400) + 1m
= 15,000,000 + 1,000,000
= $16,000,000
The total value of the firm without taxes is $16 million.
The 5 is the thousandth’s place. It also represents 0.005 which in can be written as 0.5%. Hope this helps!
The answer is A. Taxes are lower
Answer:
The answer is because of product differentiation
Explanation:
Under monopolistic competition, the sellers' product are differentiated from one another and this gives the sellers the power to influence prices.
Like perfect competition, the market has many buyers and sellers, free entry and exit but the major difference between the two is the product differentiation.
For example in the mobile phone market, we have Samsung, Infinix, Iphones, Oppo etc. They are all mobile phones but they are different from from one another in the aspect of specifications. iPhones usually charge highest. There is customers' loyalty in this market.