Answer:
Consumer Surplus
Explanation:
Consumer Surplus occurs when a expensive item is available at a discounted price in the market. The difference in price charged by the market and the discounted price of the similar product is customer surplus. In this question, the consumer surplus is:
Customer Surplus = $50 average price in the market - $40 Discounted Price
Customer Surplus = $10
Explanation:
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Answer:
$2,250
Explanation:
The computation of the bad debt expense is shown below:
= Credit sales × estimated percentage - credit balance in allowance for doubtful accounts
= $250,000 × 1% - $250
= $2,500 - $250
= $2,250
For computing the bad debt expense, we simply calculated the estimated value and then deduct the credit balance in allowance for doubtful accounts from that.
Answer:
$28.56
Explanation:
Given that
n = 19 years as dividends is not paid until 20 years
Dividend = $20
Required return = 10.5%
Price of stock 19 years from now = Dividends/Required return
= 20/10.5%
= 20/0.105
= 190.47
Price of stock today = Future value/(1 + r)^n
= 190.47/(1.105)^19
= 190.47/ 6.67
= 28.556
= $28.56
Answer:
The cost of everything will go up
Explanation:
