The cost of goods sold on October 24 is $4830
The perpetual inventory as on October 31 is 70 units of value as $2310
Explanation:
The order of events in the given scenario,
- Oct. 1 - Inventory 200 units at $30
- Oct. 7 - Sold 160 units
- Oct. 7 - Remaining Inventory 40 units at $30
- Oct. 15 - Purchase 180 units at $33
- Oct. 15 - Total Inventory 40 units at $30 + 180 units at $33
- Oct. 15 - Total Inventory 220 units and value is $7140 ($30 * 40 + $33 * 180)
- Oct. 24 - Sold 150 units
- Oct. 24 - Taken 40 units from the purchase of $30 and 110 units from the purchase of $33 by using FIFO logic
- Oct. 24 - Total cost of goods sold is $4830
So, cost of goods sold on October 24 is $4830
- Oct. 24 - Total Inventory 70 units and value is ($7140 - $4830) = $2310
The perpetual inventory value as on October 31 is $2310
The Utility Maximization rule states that as long as one good provides more utility per dollar than another, the consumer will buy more of that good.Marginal utility is t<span>he extra utility a consumer obtains from the consumption of one additional unit of a good or service. So, in our case the additional unit can be cherry or date. MUc is the marginal utility of cherry and MUd is the marginal utility of date:
MUc=2*MUd
The price of the cherries is Pc and of the dates Pd: Pc=2*Pd.
According the utility maximization: MUc/Pc=MUd/Pd
2*MUd/2*Pd=MUd/Pd
So, yes the </span><span>consumer is maximizing utility. </span>
Answer: $112
Explanation:
The following information can be gotten from the question:
Growth Rate = 5%
Dividend at end of year,D1 = 5.60
Required return, ke = 10%
Then, the current market value will be:
P0 = De/(ke-g)
= 5.60/(10% - 5%)
= 5.60 / 5%
= 5.60/0.05
= $112
Therefore, the current market value of a share of IBM stock is $112.
I would like to help. Any choices?
Answer:
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
Explanation:
When calculating NPV the cash inflows and cash outflows arising at the duration of the life are discounted at WACC. Generally, present value of outflow is same as actual as no discounting is done, as that occurs at the initial time of the project.
Cash inflows arising at year end are discounted.
When, WACC is lower The present value of inflows is lower in comparison to higher WACC.
Therefore, there is lower NPV with lower WACC.
Thus, Statement b. is correct.
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
