Answer:
There are two statements that can better express the main conclusion of the above argument:
1. People concerned with the environment are likely to use energy-saving appliances.
2. Primary buyers of battery-powered cars are those concerned with the environment.
Explanation:
It is correct to say that both statements express the main conclusion of the above argument.
In the first premise it is said that "People concerned about the environment are the main buyers of battery-powered cars."
In the second premise, it is said that: "people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home."
Therefore, it is possible to conclude that the main buyers of battery-powered cars are those who care about the environment and also those who save energy at home.
Answer:
$5.83
Explanation:
The common stock of federal logistics is being sold at $57.56 per share
The total return is 10.13%
Therefore the amount of dividend can be calculated as follows
= price × return
= 57.56 × 10.13/100
= 57.56 × 0.1013
= $5.83
Hence the amount of dividend is $5.83
Answer:
A. Total expenditure on light bulb increases after the tax.
Explanation:
The government has imposed tax on the light bulb production and the new price after the tax is $14. The price before the tax was $12 and the marginal cost before tax was $9. There was a profit of $3 for the producers of the light bulb. The tax burden is shifted to the consumers of the bulb since the marginal price after tax is $12. Total expense for the production of bulb has increased due to tax.
Answer:
C. Individuals and corporations borrow at the same rate.
Revised Question:
A key underlying assumption of MM Proposition I without taxes is that:
A. financial leverage increases risk.
B. individuals can borrow at lower rates than corporations.
C. individuals and corporations borrow at the same rate.
D. managers always act to maximize the value of the firm.
E. corporations are all-equity financed.
Explanation:
Modigilani-Miller gave theories about the optimal capital structure of the firms. They proposed thier theories under <em>taxes and and without taxes</em> economies. They gave two propositions under each economy.
MM proposition I without taxes states that value of of firm with equity finance and value of a firm with debt finance are equal. So the capital structure of a firm is irrelevant in decision making.
The underlying assumption of the proposition is:
Presence of asymmetric information due to which, investor's and firm's cost of borrowing money is same.
The computation follows:
1. Solve first for the variable cost per unit.
Direct materials $ 6.00
<span>Direct labor $ 3.50
</span>
<span>Variable manufacturing overhead $ 1.50
</span>
<span>Sales commissions $ 1.00
</span>
<span>Variable administrative expense $ 0.50
</span>
<span>= $12.50 variable cost per unit
2. Then deduct the selling price to the variable cost per unit, to get the contribution margin.
</span><span>22 - 12.50 = $9.50 CM per unit</span>
