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3 years ago

Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.

Business

1 answer:

Furkat [3]3 years ago

3 0

Answer:

B. The market demand is perfectly elastic at the market price. °

Explanation:

As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker

In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost

So the option b is incorrect

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Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $82, and the book value per share is

Dmitry [639]

Answer:

a. The company's capital structure weights on a book value basis is that the Equity/Value is 0.1584 and the Debt/Value is 0.8416

b. tTe company's capital structure weights on a market value basis is that the Equity/Value is 0.7257 and the Debt/Value is 0.2743

Explanation:

a. According to the given data we have the following:

Book Value of first bond = $135 million

Book Value of second bond = $120 million

Book Value of shares = 8*6 = 48

Therefore, in order to calculate the company's capital structure weights on a book value basis we would have to make the following calculations:

Weight of equity = 48/($135+$120+48) = 0.1584

Weight of debt = ($135+$120)/($135+$120+48) = 0.8416

b. In order to calculate the companyâs capital structure weights on a market value basis, we would have to calculate first the Market Value of first bond and the Book Value of second bond as follows

Market Value of first bond = $135*93% = $125.55 millions

Book Value of second bond = $120* 102% = $122.4 millions

Market Value of shares = 8*82 = 656

Therefore, Weight of equity = 656/(656 +125.55 +122.4) = 0.7257

Weight of debt = (125.55+122.4)/(656 +125.55 +122.4)) = 0.2743

6 0

4 years ago

Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics.

Taya2010 [7]

Answer:

a) T-Accounts:

Date Description Debit Credit

Common Stock

Aug. 1 Cash $6,500

Photography Equipment 33,500

Aug. 31 Balance $40,000

Date Description Debit Credit

Cash Account

Aug. 1 Common Stock $6,500

Aug. 2 Prepaid Insurance $2,100

Aug. 5 Office Supplies $880

Aug. 20 Fees Earned $3,331

Aug. 31 Utilities $675

Aug. 31 Balance $6,176

Date Description Debit Credit

Photography Equipment

Aug. 1 Common Stock $33,500

Date Description Debit Credit

Prepaid Insurance Account

Aug. 2 Cash $2,100

Date Description Debit Credit

Office Supplies

Aug. 5 Cash $880

Date Description Debit Credit

Fees Revenue

Aug. 20 Cash $3,331

Date Description Debit Credit

Utilities Expense

Aug. 31 Cash $675

b) Trial Balance as of August 31:

Accounts Debit Credit

Cash $6,176

Photography Equip 33,500

Prepaid Insurance 2,100

Office Supplies 880

Utilities Expense 675

Common Stock $40,000

Fees Revenue 3,331

Total $43,331 $43,331

Explanation:

a) The Common Stock equals the cash and equipment contribution made by Madison Harris, the owner of Pose-for-Pics.

b) Pose-for-Pics' T-accounts are the general ledger accounts of the company. They record the individual accounts' transactions for the accounting period, usually a month, which are summarized by the preparation of the trial balance as of month-end.

3 0

3 years ago

Fred, a department manager, is attending the monthly budget planning meeting, where all the department managers report on their

Llana [10]

The answer to this question is active style of listening
active style of listening involves direct focus and attention to whoever your communication partner is.
Nodding his hands appropirately after a certain response could be used as an indicator because it indicates that fred making a conscious effort to listen to the communication partner.

3 0

3 years ago

Employee a. who executes orders to buy and sell for clients of his or her brokerage firm. b. individual who trades on the floor

LUCKY_DIMON [66]

Answer:

In the given context, the correct definition for an employee, would be that of an individual who executes orders to buy and sell for clients of his or her brokerage firm.

Explanation:

An employee is a person who is hired by an employer to execute functions that are necessary to his organization's full operation. In the context of the stockmarket, an employee of a company would not trade for his or her account, but for his employer's account, following their policies and intentions. Therefore, an employee is an individual who executes orders to buy and sell for clients of his or her brokerage firm.

8 0

3 years ago

A cash equivalent is: Multiple Choice Generally within 3 years of its maturity date. Close to its maturity date but its market v

11111nata11111 [884]

Answer:

An investment readily convertible to a known amount of cash

Explanation:

Cash equivalents are items usually recognized in the balance sheet along with cash (then names Cash and cash equivalent) that are readily or easily convertible to cash at an amount that is measurable.

Examples of cash equivalents include commercial papers, bank certificate of deposit, treasury bills usually with a tenor of 3 months or less etc.

Cash equivalents are assets and help improve the company's liquidity.

6 0

3 years ago