Answer:
True
Explanation:
If there is an increase in supply that reduces market price. Consumer surplus increases because both of the following reasons
(1) consumer surplus received by existing buyers increases and
(2) new buyers enter the market.
a. TRUE
Answer:
Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?
A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
Explanation:
Level capacity strategy
The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall
Currently, $17.39 is the price that investors are willing to pay for a share of this stock. Currently, $18.75 is the price that investors are prepared to pay for a share of this stock.
What is preference shares?
Shares with the ability to receive dividends announced by the firm before equity shareholders are referred to as preference shares, or preferred shares. A security with a fixed income is preferred shares.
Annual rate after year 4(g) =2%
required rate (r) = 9%
Terminal value = Dividend year 4 × (1 + g) / (r—g)
1.25000 × 1 + 0.02/0.09 – 0.02
= 18.21429
(i) D1/(1+r) + 
+ 
+ terminal value/
1.50/(1+9%) + 1.50/
+ 1.25/
+ 1.25/
+ 18.21429/
= 17.39289
(ii) Annual dividend/r
1.50/8%
=18.75
Hence, the significance of the preference shares is aforementioned.
Learn more about on preference shares, here:
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The difference in income between Cameron and Mateo is <u>$500,000</u>.
<u>Explanation</u>:
Cameron decided to start his career directly out of the high school with no further training. He was able to make an average of $30,000 in his career.
Mateo was a best friend of Cameron. He started his career after completing his college degree. He was able to make an average $55,000 for a year.
Both of them had huge difference in their salary. After 20 years, the difference between the income of Cameron and Mateo will be $500,000.
Difference in income after 20 years= (55000-30000)*20
= (25000)*20
= 500,000
Therefore, the difference in income between Cameron and Mateo is <u>$500,000</u>.
