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3 years ago

7

Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable

costs of $150. The firm's average fixed costs are________.
A. $5,000
B. $500
C. $50
D. $0.5

1 answer:

Virty [35]3 years ago

3 0

Answer:

The correct answer is

A. $5,000

good luck ❤

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Why would stable prices be a goal of the US government?

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The objective of price stability refers to the general level of prices in the economy. It implies avoiding both prolonged inflation and deflation. Price stability contributes to achieving high levels of economic activity

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3 years ago

Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $19,000 would be spent. Current

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Answer:

Alternative I: (Extra dividend)

Price per share is $ 46.20

Shareholder wealth per share is $ 42.40

Alternative II: ( Share repurchase)

For share repurchase, the price per share and the shareholder wealth is equal to the stock price.

Explanation:

Alternative I: (Extra dividend)

Amount spent = $19,000

Outstanding shares = 5,000 shares

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Price per share = Stock price - $\frac{Amount spent}{Outstanding Shares}$

= $50 - $\frac{19,000}{5,000}$ = $50 - $3.8

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= $46.20 - $3.8

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Alternative II: ( Share repurchase)

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4 years ago

You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your

pickupchik [31]

Answer:

The answer is 27,408.71

Explanation:

Solution

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The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.

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100, 00 = X (1 - (1.065)^-4/.065/1.065

We now solve for X

Thus

X =7,408.71

By applying or using a financial calculator

We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"

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PV = -100,000

FV = 0

CPT PMT

The payments are known to to be 27,408.71

Note : Kindly find an attached copy of the Financial calculator below

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3 years ago

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On September 1, 2021, Middleton Corp. lends cash and accepts a $2,100 note receivable that offers 8% interest and is due in six

Ulleksa [173]

Answer:

Interest revenue = $56

Explanation:

Interest on note receivable calculation:

Note receivable amount × Interest rate × Numbers of period

Given,

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Interest rate = 8%

Number of period = 6 month

Putting the values into the formula we can get

Interest on note receivable calculation =$2100 × 8% × (6/12)

= $168 × (6/12)

Interest for the notes Receivable for 6 months = $84

The note receivable will be matured on March 1 2022. But we have to calculate the interest for 2021. Therefore Middleton Corp. Will report interest revenue = $84 × (4/6)

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3 years ago

How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.

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Answer:

I will discuss how taxes affect the financial planning of individuals, not businesses.

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An example about how this works is when you you invest in stocks. All dividends are taxed as ordinary income, but if you hold a stock for more than one year and then sell it making a profit, you will be taxed at a much lower rate. That is why it is always a good idea to hold stocks long enough for long term capital gains rate to apply. E.g. if you are married and your ordinary taxable income is less than $80,000, you pay 0 taxes for long term capital gains. Even couples earning up to $496,600 will pay only 15%, while their marginal tax rate on ordinary income is 35%. Remember that every cent that you save on taxes, increases your wealth, and a 20% difference is a lot.

Another example are IRA accounts. Contributions to traditional IRA accounts lower your taxable income, which is great. Any interest gained by the account will not be taxed until you retire. This allows your money to grow tax free. E.g. you have $100,000 to invest and you an earn 8% per year. If you do not pay any taxes, in 10 years you will have $100,000 x 1.08¹⁰ = $215,894.50. But if you pay a 24% tax rate on your gains, then you will only have $100,000 x [1 + (0.08 x 0.76)]¹⁰ = $180,441.

In order to reduce your taxes, you might sometimes need to postpone or accelerate some expenses or donations. E.g. you generally donate $3,000 to church, it is December and you are getting ready to sign a check. But you then realize that your current tax bracket is 12%, but since you got a raise, next year you will pay 24%. It is a good idea to write the check on January 2, since you will save $3,000 x (24% - 12%) = $360 in future taxes.

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3 years ago

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