The us government is trending away from deregulation toward regulated monopolies

Sheridan Company issues 3600 shares of its $10 par value common stock having a fair value of $20 per share and 5600 shares of it

Svetach [21]

Answer:

$125,026

Explanation:

Common Shares 3,600

Fair value <u> $20</u>

Total market value of common stock $72,000

Preferred shares 5,600

Fair value <u> $20</u>

Total market value of preferred stock $112,000

Lump Sum amount $205,400

Amount of proceeds should be allocated to the preferred stock = 205,400 * (112,000 / (72,000 + 112,000) ) = $125,026

8 0

3 years ago

A monopolist can practice third-degree price discrimination. If demand in the United States is given by y1 = 7,200 – 100p1, wher

Novosadov [1.4K]

Answer:

The difference between the monopolistic price charged in England and the monopolistic price charged in the United States will be = 27

Explanation:

Y1 = 7200 -100p1 = > p1 = 72 – y1/100

Y2 = 3600 – 200p2 = > p2 = 18 – y2/200

The cost of monopolist (since it’s the same firm and uses same technology) shall be same in both countries, hence let us assume marginal cost to be say c

Now the first order condition for Profit Maximisation of a monopolist yields

Marginal Revenue = Marginal cost

= > Marginal Rev US = c = Marginal RevEngland…………………..i

Now, Revenue in US = p1y1 = y1(72 – y1/100)

MR US = dRev/dy1 = 72 – y1/100 -y1/100 = 72 – y1/50

Similarly MREng = 18 – y2/100

Hence putting the above derivations in i:-

72 – y1/50 = 18 – y2/100

Now putting values for y1 and y2 again the above equation becomes:-

72 – (7200 -100p1)/50 = 18 – (3600 – 200p2)/100

= > 54 – 144 + 2p1 = -36 + 2p2

= > 2(p1 – p2) = -36 + 90 = 54

= > p1 – p2 = 27

8 0

3 years ago

Career cluster help identify the knowledge and skills needed to;

Svetlanka [38]

Career clusters help identify knowledge and skills needed to follow a pathway toward a career goal.

3 0

3 years ago

Kendrick's job responsibilities have recently been changed as part of a decentralization effort taking place at his office. He h

andrey2020 [161]

<h2>The given situation is an example of job enrichment</h2>

Explanation:

Let us understand the term "job enrichment".

Giving additional responsibilities
Providing additional powers to feel the satisfaction of the job
Organization enrich the job to support indirect motivation
It is one way to retain the highly qualified employees for longer duration
This is also done to better utilize the skills which in turn supports the organization to grow better.
The negative part is that it increases the work load of the employee.

8 0

3 years ago

You are given the following information concerning Around Town Tours:Debt: 7,500, 6.8 percent coupon bonds outstanding, with 11

gtnhenbr [62]

Answer:

9.0%

Explanation:

Calculation to determine the WACC for this firm

First step

Common stock=284,000 × $68

Common stock= $19,312,000

Second step is to calculate the Preferred stock

Preferred stock=9,000 × $88

Preferred stock= $792,000

Debt= 7,500 × .979 × $1,000

Debt = $7,342,500

Value = $19,312,000 + 792,000 + $7,342,500

Value= $27,446,500

Second step

RE = .041 + 1.04(.146-.041)

RE= .1502

RE = ($2.62 /$68) + .025

RE= .0635

Average RE = (.1502+ .0635)/2

Average RE = .1069

RP = $8/$88

RP = .0909

Fourth step

$979 = [(.068 × $1,000) / 2] × ({1- 1 / [1 + (r/ 2)]22} / (r / 2)) + $1,000 / [1 + (r / 2)]22

r = 7.08 %

Now let calculate the WACC

WACC = ($19,312,000/$27,446,500)(.1069) + ($792,000/$27,446,500)(.0909) + ($7,342,500/$27,446,500)(.0708)(1 -.34)

WACC= .090*100

WACC=9.0 %

Therefore the WACC for this firm is 9.0%

7 0

3 years ago