Answer:
A. Decrease in price of complements
B. Increase in price of complements
C. Increase in price of substitute
D. Decrease in price of substitute
Explanation:
A. A decrease in the price of a good would increase its demand. This will cause the demand for its complements to increase as well, this is because the complements are consumed together.
B. Similarly, the increase in the price of a good would decrease in its demand. Along with it, the demand for its complement will decrease as well because the complements will be consumed together.
C. When the price of a good increases, its demand will decrease. The demand for its substitutes will increase because the consumers will prefer the cheaper substitute.
D. Similarly, the decline in the price of a good will make it cheaper, so its demand will increase. The demand for its substitute will decrease because the consumers will prefer the good that is cheaper.
Answer:
C. Retained earnings increased $28,200 during 2018.
Explanation:
Total liabilities = Total assets - Total equities
= $217,000 - $123,000
= $94,000
Common stock as at December 31, 2018 = Total equity - Total retained earnings
= $123,000 - $83,000
= $40,000
Retained earnings at year end =
Opening retained earnings + net income - dividend paid
$83,000 = Opening retained earnings + $33,900 - $5,700
$83,000 = Opening retained earnings + $28,200
Opening retained earnings = $54,800
Change in retained earnings = Closing retained earnings - Opening retainer earnings
= $83,000 - $54,800
= $28,200
Therefore, Option 'C' is the correct option.
Answer: False
Explanation:
The process of Amortization spreads out a loan into a series of fixed payments over time.
The borrower essentially pays the both the loan's interest and it's principal in varying amounts per month but the total payment is the same.
During the beginning of the loan repayment schedule, interest costs are known to be highest and only a small portion of the balance/principal is paid.
The statement is therefore FALSE.
If you need any clarification or have any questions please feel free to comment or react. Thank you.
Answer:
d. 8.18 million
MVA is $380 million
Explanation:
Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.
Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million
Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million
Return on investor-supplied capital = $115 million x 7.5% = $8.625 million
Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million
MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.
MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million
The National Benchmark Tests (NBTs) are assessments for first-year applicants into higher education institutions. The NBTs were designed to measure a writer's ability to transfer understanding of Academic Literacy, Quantitative Literacy and Mathematics to the demands of tertiary coursework