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2 years ago

a consumer has $100 to spend on two goods X and Y with prices $3 and $5 respectively. drive the equation of the budget line

Business

1 answer:

kotegsom [21]2 years ago

5 0

Answer:

3X + 5Y = 100

Explanation:

Given that a consumer has $ 100 to spend on two goods X and Y with prices $ 3 and $ 5 respectively, the equation that represents this distribution is the following:

3X + 5Y = 100

Thus, the consumer may consume different combinations of products, as long as the sum of both amounts is $100 as a final result. For instance:

3x20 + 5X8 = 100

60 + 40 = 100

3x5 + 5x17 = 100

15 + 85 = 100

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Pretty sure it’s false

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3 years ago

Annette [7]

Answer:

under health and safety law

Explanation:

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3 years ago

In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb

MArishka [77]

Answer:

d) as a current liability

Explanation:

Current Liabilities are those liabilities which are payable within one years time e.g trade payable, tax payable etc.

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3 years ago

Biden Resorts Company currently has 0.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has

frutty [35]

Answer:

Hence, the weighted average cost of capital is 15.87%.

Explanation:

We have to find current weights,

Value of equity = Shares x Share price = 0.2 x 10 = $2 million

Face Value of Bonds FV = $1 million

Semi annual coupon P = 1 x 8% / 2 = $0.04 million

Number of coupons remaining n = 5 x 2 = 10

Semi annual yield r = 13.65% / 2 = 6.825%

Value of Debt = Px [1 - (1 + r)-n] / r + FV / (1 + r)n

= 0.04 x [1 - (1 + 0.06825)-10] / 0.06825 + 1 / (1 + 0.06825)10

= $0.8 million

Total Value = 2 + 0.8 = $2.8 million

Weight of Debt = 0.8 / 2.8 = 28.57%

Weight of Equity = 2 / 2.8 = 71.45%

Amount of Debt to be raised = Weight of debt x Capital

= 0.2857 x 7.5

= $2.14 million

Since the amount of debt to be raised is less than $2.5 million, the yield will be 13.65%

Cost of Equity = Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 3% + 2.2 x (10 - 3)

= 18.4%

The weighted average cost of capital:-

WACC = Weight of Debt x Cost of Debt x (1 -Tax Rate) + Weight of Equity x Cost of Equity

= 0.2857 x 13.65% x (1 - 0.3) + 0.7145 x 18.4%

= 15.87%

8 0

3 years ago

Compute and select the correct common-size percent for each account title.Total Assets is $700,000 Accounts Payable is $75,000 B

Arisa [49]

Answer and Explanation:

The computation for each corrected common-size percent for each account is shown below:

Particulars Amount Percentage

Total assets $700,000 100%

Accounts payable $75,000 10.71%

($75,000 ÷ $700,000)

Bonds payable $225,000 32.14%

($225,000 ÷ $700,000)

Common stock $300,000 42.86%

($300,000 ÷ $700,000)

Retained earnings $100,000 14.29%

($100,000 ÷ $700,000)

Therefore each one of assetm liabilities and stockholder equity is presented as a percentage of total assets and the same is to be considered

3 0

3 years ago

a consumer has $100 to spend on two goods X and Y with prices $3 and $5 respectively. drive the equation of the budget line​

a consumer has $100 to spend on two goods X and Y with prices $3 and $5 respectively. drive the equation of the budget line