Answer:
The correct answer is option A) Total surplus is represented by the area between the demand and supply curves up to the point of equilibrium.
Explanation:
Total surplus consists of consumer ans producer surplus.
whereas consumer surplus is the area above the market price and below the demand curve, while producer surplus is the area below the market price but above the supply curve.
Total surplus is the total area for the consumer surplus plus the total area for the producer surplus represented by the area between the demand and supply curves up to the point of equilibrium.
Answer:
34.285%
Explanation:
<u> Income Statement : </u>
<u>Particular Amount</u>
Sales $175,000
<u>Less: Cost of goods sold $115,000
</u>
<u>Gross profit $ 60,000
</u>
Gross profit Margin = [(Net Sales - cost of goods sold) / Net Sales]100
Gross profit Margin = [($175,000 - $115,000) / $175,000] 100
Gross profit Margin = [$60,000 / $175,000]100
Gross profit Margin = [0.34285]100
Gross profit Margin = 34.285%
Answer:
$7.32K or $ 7,320 and $5.7098K or $5,709.8
Explanation:
Colby total sales : 14K
Week I: $35 K
week 2: $14 K
week 3: $24 K
week 4: $39 K
Total sales were $122 K($ 35+14+24+39)
Straight commissions total are 6% of all sales
=6/100 x $122
= $7.32K or $ 7,320
the total after taxes
The tax rate is 22%
Actual tax = 22/100 x $7.32
=0.22 x $7.32
=$1.6106
After tax = 7.32- 1.6102
=$5.7098K or $5,709.8
Answer:
C) 10.92 years worth of payments
Explanation:
Answer:
$24.587
Explanation:
Given:
Annual dividend paid = $1
Expected growth rate for 2 years = 25% = 0.25
After 2 years growth rate = 5%
required return for deployment specialists = 11.0%
Now,
At the end of year 1, Expected dividend on stock = $1 × (1 + 25% ) = $1.25
At the end of year 2, Expected dividend on stock = $1.25 × (1 + 25%)
= $1.5625
At the end of year 2, Expected dividend on stock = $1.5625 × (1 + 5% )
= $1.640625
and,
Value of stock at the end of Year 2 =
=
= $ 27.34375
Therefore,
The Intrinsic value of stock =
= 1.1261 + 23.4610
= $24.587