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2 years ago

why do natural and geographical monopolies arise, and why are they often good for the economy and for consumers

1 answer:

3 0

They arise because goods can sometimes be found only in certain parts of the world. A famous example of this was historically silk which was only found in China and everyone had to pay what the Chinese manufacturers said. It was good for Chinese economy because their merchants and silk manufacturers were rich, and in return the consumers were satisfied because they had the original high quality silk coming straight from China which ensured quality.

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Which one of the following ratios is a measure of a firm's liquidity?

Hunter-Best [27]

Answer:

1. quick ratio

Explanation:

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay ongoing debts.

Pls mark brainliest

Thank you

6 0

1 year ago

Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p

frutty [35]

Answer:

10.12%

Explanation:

The computation of the WACC is shown below:

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 6% × (1 - 0.21) × 0.35 ÷ 1.35 + 12% × 1 ÷ 1.35

= 1.23% + 8.89%

= 10.12%

We simply multiplied the capital structure with each of its weight so that the WACC could come and the same is to be considered

7 0

3 years ago

Flowchart of Accounts Related to Service and Processing Departments

MakcuM [25]

Answer:

Main route:

Smelting --> Rolling --> Converting --> Sheared Sheet

Secondary route -->

Smelting --> Rolling --> rolled sheet

1) Smelting trasnferred materials into Rolling

2) It will be part of that department work in process inventory

"WIP SConverting debit then factorty overhead credit"

Later it will be transferred out as a complete process therefore,

Finished good Inventory - Shared sheet

3) the Smelting department transfer the entire of his output into Rolling department

4) the finished good will become cost of good solg once they are sold.

Explanation:

We have to read he description of how the processing system works and check to whichdeparmtent are the goods being transferred or sold.

7 0

2 years ago

Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets.

snow_lady [41]

Answer:

Laserscope Inc.

Return on Equity (ROE):

= $1,466,400/$18,000,000 * 100

= 8.15%

Explanation:

a) Laserscope's Return on Equity (ROE) is a financial performance measure, calculated by dividing the net income or Earnings After Tax (EAT) by its total shareholders' equity. It is usually expressed as a percentage. So the above calculation is further multiplied by 100.

b) Data and Calculations:

Current assets = $16

Fixed assets = $20

Total assets = $36

Debt ratio = 50% of $36 million = $18 million

Therefore, Stockholders' equity = 50% (1 - 50%) or $18 million

EBIT = $4.1 million

Short-term debt = $6 million

Long-term debt = $12 million

Interest on short-term debt = $420,000 (7% * $6 million)

Interest on long-term debt = $1,236,000 (10.3% * $12 million)

Total interest expense = $1,656,000

Earnings before interest and taxes = $4,100,000

Interest expense 1,656,000

Earnings before taxes 2,444,000

Company tax (40%) (977,600)

Earnings after taxes (EAT) $1,466,400

7 0

3 years ago

The increasing involvement of salespeople in _____________________ is one major reason why the average cost of a sales call has

Otrada [13]

It would be because of Non selling activities

8 0

3 years ago