1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
12345 [234]
3 years ago
12

b. Suppose Tom has $5 to spend on Batman and Superman comic books (nothing else matters to Tom). If Tom wants to maximize his ut

ility, how many of each should he buy
Business
1 answer:
kirill115 [55]3 years ago
3 0

Answer:

But 1 Batman comics book, and 2 Superman comics book

Explanation:

Remember, Tom has only $5 to spend on the two books, with the goal of deriving maximum utility. Thus, if he spends on 2 quantity of Superman comics he deeives total marginal utility of 150 (58+92). Then, he may proceed to Batman comics, which gives him a marginal utility of 40.

You might be interested in
The cost of overestimating demand is usually harder to determine than the cost of underestimating demand. Group of answer choice
forsale [732]

Answer:

The statement is: False.

Explanation:

In supply chain management, incremental analysis is in charge of determining the cost of ordering one more additional unit of a product over the cost of no requesting that additional unit. The cost of overstimulating demand is the loss of ordering one additional unit and discovering that it cannot be sold. The cost of underestimating demand is the opportunity loss for nor requesting one additional and discovering it could have been sold.

<em>The cost of underestimating demand is more difficult to determine than the cost of overestimating demand because underestimating demand because it involves customer's desires</em> on purchasing a product when not having the resources to do so.

8 0
3 years ago
Avido Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to grow at a constant rate of
Tatiana [17]

Answer:

6.57%

Explanation:

Given that,

D1 = $2.00

Dividend growth rate, g = 4.50%

Stock price, P0 = $47

Before-tax cost of debt = 6.50%

Tax rate = 40%

Target capital structure for Debt = 45%

Target capital structure for Common equity = 55%

Cost of equity:

= (D1 ÷ P0) + g

= ($2.00 ÷ $47) + 4.50%

= 4.25% + 4.50%

= 8.75%

After tax cost of dept:

= Before tax cost of dept × (1 - Tax rate)

= 6.50% × (1 - 0.40)

= 6.50% × 0.60

= 3.9%

Company’s WACC if all the equity used is from retained earnings:

= (Cost of equity × Percent of common equity) + (After tax cost of dept × Percent of debt)

= (8.75% × 55%) + (3.9% × 45%)

= 4.8125% + 1.755%

= 6.57%

4 0
3 years ago
Why does a stock dividend require a formal journal entry in the financial accounting records when a stock split does not?
adelina 88 [10]
<span>A stock split will not change the general ledger account balances and ... equity remains the same, astock dividend requires a journal entry to transfer an amount ...</span><span>
</span>
4 0
3 years ago
Marston Corp. writes 28 checks a day for an average amount of $398 each. These checks generally clear the bank 3 days after they
irina [24]

Answer:

The Marston Corp. disbursement float is  $ (16,768.00)

Explanation:

The firm writes 28 checks a day for an average amount of $398 each, is equal to say = 28 * $398 =  $ 11,144.00 . If these checks generally clear the bank 3 days after they are written, then =  $ 11,144.00 * 3 =  $ 33,432.00

And, the firm generally receives 40 checks with an average amount of $502 each, is equal to say = 40 * $502 =  $ 20,080.00 . If the deposited amounts are available after an average of 2.5 days, then = $ 20,080.00  *  2.5 =  $ 50,200.00

The Marston Corp. disbursement float is  = $ 33,432.00  -  $ 50,200.00 =

$ (16,768.00)

7 0
3 years ago
Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should be do to ensure his
jolli1 [7]
<span>Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should be do to ensure his score stays high, allowing him to buy his dream car?

A Open a savings account at the local bank.

B Pay off his credit card balance each month.

C Test drive several cars before deciding which to buy.

D All are things he should do to increase or maintain his credit score.

The answer is D.

</span>i think that the answer is D because it depends on what Jose pefers to do.\

And it makes sense.... if im wrong just comment and tell me.
3 0
3 years ago
Other questions:
  • When using ________ financing, the company incurs a legal obligation to repay the amount borrowed. debt equity retained earnings
    12·1 answer
  • Business level strategy addresses two related issues: what businesses should a corporation compete in and how can these business
    14·1 answer
  • Brandon has completed the first draft of his business report and is in the third phase of the writing process, revision. what sh
    9·1 answer
  • A company sells each unit of its product for $ 107. The final department showed the following costs per equivalent​ unit: $ 48 ​
    14·1 answer
  • Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issue
    14·1 answer
  • I WILL GIVE BRAINLIEST!!!! How might a mixed economy guard against the risks and disadvantages associated with market and comman
    5·2 answers
  • What results when work seeps into non-work time?
    10·1 answer
  • What objectives of internal controls are of primary interest to an auditor performing a financial statement audit?
    7·1 answer
  • When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
    10·1 answer
  • Profitability measures such as return on assets (roa) and return on equity (roe) are ___ rates of return.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!