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3 years ago

Which of the following statements is not correct?

Business

1 answer:

Korvikt [17]3 years ago

8 0

Answer:

B) To maximize profit, firms should produce at a level of output where price equals average variable cost

Explanation:

Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the average variable cost.

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The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rat

valina [46]

Answer:

5.34%

The correct option is C,5.60%

Explanation:

The are two requirements here,the first is after cost of debt for the first part of the case study and after tax cost of debt for the second part of the scenario:

1.after tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is 9.7%

t is the tax rate at 45% or 0.45

after tax cost of debt=9.7%*(1-0.45)=5.34%

The pretax cost of debt here is computed using the rate formula in excel:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond pays coupon interest which is 15

pmt is the annual coupon interest receivable by investors i.e $1000*12%=$120

pv is the current market price of the bond which is $1,136.50

fv is the face value of the bond at $1000

=rate(15,120,-1136.50,1000)

rate =10.19%

after tax cost of debt=10.19% *(1-0.45)=5.60%

7 0

3 years ago

Margaret, a vegetarian, is looking for a mushroom with a meaty texture to grill and eat instead of a hamburger. Which of the fo

storchak [24]

C. Portobello, is a good example of a mushroom with a meat like texture.

4 0

3 years ago

Read 2 more answers

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Illusion [34]

Answer:

wjwksjsbdjdhdhsjdns

Explanation:

Human resources development is important because it is an investment in one's employees that will ultimately result in a stronger and more effectiv

e nmmnejeej

amksusshhvsu

5 0

2 years ago

Read 2 more answers

Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed telephone fax machines (costing about $1,3

Kruka [31]

Answer:

A) accessory equipment.

Explanation:

Accessory equipment is equipment that is fixed on a place or fixed to other equipment. If the accessory equipment is removed, the original equipment will continue to function as it did before.They must be depreciated since they cannot be expensed.

In this case, the fax machines work along side the telephones of Sumitomo bank and if removed, the telephones would still work. The IRS classifies fax machines as part of office furniture, fixture and equipment, and establishes a 7 year depreciation period.

7 0

3 years ago

Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 20%, the q

aalyn [17]

Answer:

Penguin patties and kipples should be advertise together.

Explanation:

The cross-price elasticity formula is:

CPE= % Δq of good A/ %Δp of good B

The CPE of penguin patties and raskels is:

CPE= -22%/-20%

CPE= 1.1

If the CPE is positive, then both goods are substitutes, which means that an increase in price of on good will affect positively the quantity demanded for the other good.

The CPE of penguin patties and kipples:

CPE= 7%/-20%

CPE=-0.35

If the CPE is negative, then both goods are complementary, which means that an increase in price of one good will affect negatively de quantity demanded for the other good.

You should advertise complementary goods together because both could be positively benefited by advertising. If the demand for good A increases, it is probable that the demand for good B increases too. If you advertise substitute goods, people will always prefer one, then the advertising will only be effective for one of the good but not for both.

6 0

3 years ago