Answer:
the demand curve is vertical
Explanation:
In the case when the demand is perfectly inelastic the demand curve would be zero and the elasticity of the demand would be zero also if there is a decrease in the price so the total revenue would be increased
Therefore as per the given situation, in the case when the demand is perfectly inelastic so the demand curve would be vertical
Answer:
a. Dividends to Preferred shareholders:
Total dividends:
= 20,000 * 50 * 6%
= $60,000
Dividends per preferred share:
= 60,000 / 20,000 shares
= $3.00 per share
Common shareholder dividends
Common shareholders get the remaining dividends that did not go to Preferred shareholders:
= 160,000 - 60,000
= $100,000
Common dividends per share:
= 100,000 / 50,000 shares
= $2.00 per share
b. These are cumulative preferred shares which means that accrued dividends must be paid off:
Preferred shares in total would be:
= 60,000 * 2
= $120,000
Preferred dividends per share:
= 120,000 / 20,000
= $6.00 per share
Common dividends in total:
= 160,000 - 120,000
= $40,000
Common dividends per share:
= 40,000 / 50,000 shares
= $0.80 per share
Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.
Explanation:
Answer:
Net Cash flow from Operating activities $16,422
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss - $13,402
Adjustment made:
Add: Depreciation, amortization, and impairments $34,790
Add: Decrease in accounts receivable $1,245
Less: Increase in inventory -$5,766
Less: Decrease in accounts payable -$445
Total of Adjustments $29,824
Net Cash flow from Operating activities $16,422
