Stock price would be equal to total value of equity divided by no. of shares outstanding. The total value of equity would be calculated as follows:
Total value of equity = corporate value – notes payable – long term debt – preferred stock
= $900 million - $110 million – 90 million – 20 million
= $680 million
The price of the stock would be:
Stock price = total value of equity / no. of shares outstanding
= $680 million / 25 million
= $27.20
Answer:
<span> 1) If a producer can provide cable service more cheaply than another producer, it is an</span> absolute advantage.<span>
2) If a producer can produce salads while giving up fewer opportunities to make sandwiches than another producer, it is a</span> comparative advantage.
3) If a producer can create more car parts than another producer does, using the same number of resources, the price per unit is cheaper and it is an absolute advantage.
Absolute advantage<span> is the ability of a person, a country, company or region to produce a good or service at a cheaper price per unit than another entity producing the same good or service.</span>
Comparative advantage<span> is the ability of a person, a country, company or region to produce a specific good or service more efficiently (lower opportunity cost) than another entity to produce the same good or service.</span>
Answer:
Explanation:
The journal entry that would include is shown below:
Work in Progress inventory A/c Dr $125,000
Factory overhead A/c Dr $24,000
(Being labor cost is recorded)
The computation is shown below:
Work in progress = Labor expenses + whole labor expenses
=$88,000 + $37,000
= $125,000
The labor expenses are directly related to the product which means it is a direct cost
And, the whole labor expense is considered to be the overhead cost as it is not directly related to the product
And, the $24,000 is also considered as an overhead cost because it is used in both the departments so it is come under the factory overhead account
