Answer: B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
Explanation:
If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
Answer:
Option B
Explanation:
In simple words, The key responsibility of an institution's board of directors is to spend time to determine that every other board member is emotionally involved and interested in the company's objectives is invested well. When the board members are fully committed, they will become the strongest leaders, champions, strategists, and sponsors around the charity.
Thus, from the above we can conclude that the correct option is B.
Answer:
d.borrow $375,000
Explanation:
Given that
Amount available to invest = $500,000
Risk free rate = 8%
Return on the risky portfolio = 16%
Now the computation is shown below:
The interest rate should be
Interest amount on borrowings = $375,000 × 8% = $30,000
So, the total amount available to invest is
= $500,000 + $375,000
= $875,000
Now the total inflow is
= $140,000 - $30,000
= $110,000
The $140,000 is come from
= $875,000 × 16%
So the 22% is come from
= $110,000 ÷ $500,000
Answer:
$1,050
Explanation:
The owners of a corporation are the shareholders of the company. The primary goal of the corporate management team is to maximize the shareholder wealth by maximizing the company stock price over the long run
The computation of the total wealth is shown below:
= Number of shares bought × current stock price
= 35 shares × $30
= $1,050
This is the answer but the same is not provided in the given options
Book value is cost minus accumulated depreciation is the book value of the property, plant, and equipment.
What is Depreciation?
Depreciation is frequently mistaken to mean that something is merely losing value or that a computation is made for tax purposes. Although it is a complicated subject, depreciation plays a significant role in your company's tax returns. Read on to find out what depreciation is, how it's calculated, and how your business can be impacted by your depreciation estimate.
Two key components make up depreciation. The first factor is the asset's value dropping over time. The second consideration is spreading out the initial cost of an expensive asset over the time you utilise it.
The projected useful life of an asset, or how long it may be utilised, determines the number of years over which it is depreciated.
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