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3 years ago

14

Perfect elasticity and zero elasticity refer to the same event, which occurs when quantity demanded or quantity supplied change

by an infinite amount in response to any change in price.
a) true
b) false

1 answer:

larisa86 [58]3 years ago

5 0

Answer:

b

Explanation:

perfectly elasticity is when at an existing price quantity demanded can increase or decrease.the numerical co efficient is always infinity ♾️

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Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company

Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

$r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)$

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 - 0.125 = 0.34375 (.125-r_d)$

$0.0134 = 0.34375\times 0.125 - 0.34375\times r_d$

$r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375$

rd = 0.860181818 = 8.60%

6 0

3 years ago

Check My Work Dressed to a Tee received a promissory note of $8,000 for 10 months at 6% simple interest from one of its customer

nikklg [1K]

Answer:

$8,120

Explanation:

<em>To calculate the proceeds, the gross proceed less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>

Gross proceed= P + (P×R×T)

P- 8,000 R- 6%, T- 10/12

Gross proceed = (8,000 + 8,000× 6%× 10/12)

= $8,400

Discount charges = Gross proceed × discount rate × time to maturity

Time to maturity = 10 - 5 = 5 months

Discount rate - 8%, Time- 5/12

Discount charges = 8400× 5/12× 8% = $280

Proceeds to be received = $8,400 - $280

= $8,120

5 0

3 years ago

To forecast sales and schedule production needs Boeing asks its prospective customers what their likely purchase will be in the

kvv77 [185]

Answer:

To forecast sales and schedule production needs Boeing asks its prospective customers what their likely purchase will be in the next five years. This is considered a surveys of buyer's intentions

7 0

2 years ago

Use the following account balances from the adjusted trial balance of Maynard Consulting:Account Debit Balance Credit Balance Ca

Aleonysh [2.5K]

Answer:

D) debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.

Explanation:

Account Debit Balance Credit Balance

Cash $20,500

Accounts Payable $2,000

B. Conway, Drawing $600

B. Conway, Capital $13,000

Fees Revenue $18,000

Salary Expense $2,600

Rent Expense $3,000

Supplies Expense $ 1,900

Advertising Expense $800

To close the income statement, the income summary account is introduced. All credit items on the income statement (revenue and incomes) are debited and the income summary is credited while the debit balance accounts (all expenses) are credited and the income summary is debited.

Total expense = $2,600 + $3,000 + $1,900 + $800

= $8,300

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3 years ago

ABC Co wishes to undertake a project requiring an investment of $732,000 which will generate equal annual inflows of $146,400 in

Marysya12 [62]

Answer:

The IRR of the project is 13%.

Explanation:

ABC Co wishes to undertake a project requiring an investment of $732,000 which will generate equal annual inflows of $146,400 in perpetuity. If the first inflow from the investment is a year after the initial investment, what is the IRR of the project?

The first inflow from the investment is a year after the initial investment. Solving for "n", we get:

$2,548,831 = 732000/(1 + n)^1

$732,000/((1*(1+n))^1) = $2,548,831

$n = ln(($2,548,831)/$732000)

Using the function of n that we found above:

$n = ln((($2,548,831/$732000))/1)

Plugging in for "n" to get the IRR:

IRR = 13%

3 0

3 years ago