Which of the following is a style trend?

The market price of hamburgers in a college town increased recently, and the students in an economics class are debating the cau

agasfer [191]

Please find attached the graphs containing the requested information

The dominant cause of the increase in the price of hamburgers can be determined by the direction of change on quantity demanded: If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift.

The demand curve shows the relationship between price and quantity demanded. The demand curve is negatively sloped.

The supply curve shows the relationship between price and quantity supplied. The supply curve is positively sloped.

If the increase in the price of hamburgers is as a result of burger joints closing down.

If burger joints closes down, the supply of hamburgers would decrease. The supply curve would shift to the left. As a result of the leftward shift of the supply curve, equilibrium price would rise and equilibrium quantity would decrease.

The increase in the price of hamburgers is as a result of a decrease in the price of French fries.

Hamburgers and French fries are complement goods. Complement goods are goods that are consumed together. An decrease in the price of French fries would lead to an increase in the demand for hamburgers. This would lead to a rightward shift of the demand curve while the supply curve remains unchanged. As a result, both equilibrium price and quantity would increase.

If both events are partially responsible, the supply curve would shift to the left, leading to an increase in price and a decrease in quantity and the rightward shift of the demand curve would lead to an increase in equilibrium price and quantity.

If the decrease in supply is the dominant factor, there would be a decrease in equilibrium quantity.

If the increase in demand is the dominant factor, there would be an increase in equilibrium quantity.

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8 0

3 years ago

ou are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 3.0% rate

mafiozo [28]

Answer:

Each share worth is $2.59

Explanation:

According to the given data we have the following:

D1 = Cash Flow at the end of year 1 = $ 10 million

r = Cost of Capital = 10% = 0.1

g = perpetual growth of cash flows

Hence, The present value of Cash Flows = D1/(r-g)

= 10/(0.1-0.03)

=10/0.07

= $ 142.8571428571 million

= $ 142.86 million

To find the equity value we need to remove the net debt from cash flows

Net Debt = Debt - Cash

= 22 - 8.5

= $ 13.5 million

Now net cash flows = Cash Flows - Net Debt

= 142.86 - 13.5

= $ 129.36 million

Therefore, each share worth = Present Value of Cash Flow / No of Outstanding Shares

= 129.36 / 50 (Both values are in millions so the zeros are ignored)

= 2.5872

= $2.59

Each share worth is $2.59

3 0

3 years ago

Blackwell, Inc. has a $125,000 liability it must pay five years from today. The company is opening a savings account so that the

anastassius [24]

Answer:

Initial investment= $23,838.78

Explanation:

Giving the following information:

Future Value (FV)= $125,000

Number of periods (n)= 5

Interest rate (i)= 5%

First, we need to calculate the future value of the three deposits using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {30,000*[(1.05^3) - 1]} / 0.05

FV= $94,575

Difference= 125,000 - 94,575= $30,425

Now, the initial investment today:

FV= PV*(1 + i)^n

Isolating PV:

PV= FV / (1 + i)^n

PV= 30,425 / (1.05^5)

PV= $23,838.78

4 0

3 years ago

Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair val

Mrrafil [7]

Answer:

A
E
B

Explanation:

1) consolidated balance for the equipment account as of December 31 2018

Goehler equipment with book value = $975000

Kenneth equipment with book value = $105000

purchase price allocated to Kenneth's equipment = $30000 ( 120000 - 90000)

Amortization of allocation = purchase price allocated to Kenneth * 2 / 10

= (30000 * 2) / 10 = $6000

therefore consolidated balance = 975000 + 105000 + 30000 - 6000

= $1,104,000

2) applying partial equity method in accounting ( the consolidated balance will be )

The same procedure used in calculating for question 1 is applicable to partial equity method of accounting hence the answer will be the same

= $1104000

3) applying the initial value method in accounting for Kenneth

The same procedure used in calculating the partial equity procedure is applicable to initial value procedure hence the answer will be = $1104000

3 0

4 years ago

Which of the following correctly describes a repurchase agreement? The sale of a security with a commitment to repurchase the sa

Morgarella [4.7K]

Answer:

The correct answer is A: The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price

Explanation:

A repurchase agreement (Repo) is a short term agreement between two parties in which one party sells the other party security (usually government securities) at a price with an agreement to repurchase the exact same security at a fixed time and price. The maturity for a repurchase agreement can be from overnight to a year. The

Repurchase agreements are generally considered safe investments because the security in question functions as collateral, which is why most agreements involve U.S. Treasury bonds. The transaction allows the dealer to raise short term capital. It is a short term money market instrument in which two parties agree to buy or sell a security at a future date.

3 0

4 years ago