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3 years ago

True or false: the price floor of $6 per pound of cheese reduces the total revenue of cheese producers.

Business

1 answer:

Elodia [21]3 years ago

7 0

<span>The price floor of $6 per pound of cheese reduces the total revenue of cheese producers. TRUE</span>

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You have been assigned the task of using the corporate, or free cash flow, model to estimate Petry Corporation’s intrinsic value

KengaRu [80]

Answer:

C. $43.33

Explanation:

FCF1 = $75.00

Constant growth rate = 5%

WACC = 10%

Total firm value = FCF1/(WACC-g) =$1,500

Value of debt & preferred=$200

Value of equity = $1,300

# of shares = 30

Value per share = equity value /shares =$43.33

8 0

3 years ago

A banking system with a reserve ratio of 20% and a change in reserves of $1 million can increase its total demand deposits by:A.

blondinia [14]

Answer: option B is correct

Explanation: In simple words demand deposit is similar to those funds held in a checking account. Demand deposits serves as the base of the money supply of the country.

Demand deposit can be computed using following formula :-

$=\:\frac{demand\:deposit}{required\:reserve\:ratio}$

$=\:\frac{1,000,000}{20\%}=\:\$5,000,000$

3 0

3 years ago

On December 31, 2020, Grand Company had $1,232,000 of short-term debt in the form of notes payable due February 2, 2021. On Janu

VikaD [51]

Answer:

Current liabilities:

Notes payable $8,000

Non-current/long-term liabilities:

Notes payable $1,224,000

Explanation:

The actual amount of notes payable at 31st December is the difference between the short-term debt and the amount of cash realized from the issue of common stock whose proceeds are meant to be used in liquidating the short-term debt.

The actual amount of notes payable=$1,232,000-$1,224,000=$8,000

By issuing common stock of $1,224,000 to repay the short-term debt,the $1,224,000 is effectively converted to funding of long-term nature,hence classified as long-term liabilities

7 0

3 years ago

MAN FR DOE THIS <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="c6958e86">[email protected]</a>@ H

AnnyKZ [126]

Answer:

Explanation:

If they had to pay more then the customer will have to pay more

HOPE THIS HELPS!!

5 0

3 years ago

Refer to the financial statements of Burnaby Mountain Trading Company. The firm's asset turnover ratio for 2017 is _________. (P

Aleonysh [2.5K]

Answer:

1.69

Explanation:

asset turnover ratio = net sales / average assets

I looked up the missing information and found the following:

total assets year 1 = $4,000,000

total assets year 2 = $4,300,000

net sales year 2 = $7,000,000

average assets = ($4,000,000 + $4,300,000) / 2 = $4,150,000

asset turnover ratio = $7,000,000 / $4,150,000 = 1.6867 = 1.69

The higher the asset turnover ratio, the more efficient a company is. Therefore, a higher asset turnover ratio is always better although there is no fixed parameter.

7 0

3 years ago