Answer:
D) not able to be calculated from the information given.
Explanation:
Consumer surplus is the difference between willingness to pay of a consumer and the price actually paid for a good or service.
The price paid by Smith is $205,000 but there's no information on the willingness to pay of Smith. Therefore, the consumer surplus can't be calculated.
I hope my answer helps you.
Answer:
A.) private, nonrival, and excludable
B.) Common resources
C. Faster
Explanation:
A. A privately owned forest is a private good. This goods ownership is restricted to those that bought it. No one else shares in the use of this good. Therefore the answer here is that it is private, non rival and also excludable.
B. If anyone is able to enter a government forest legally it means it is a common good. Common goods are goods with rivalry but are non excludable.
C. The rate of logging in a government owned forest would be faster since there is little cost to cutting the trees, especially when there is no regulation.
Answer:
It might be endorsement.
Explanation:<u><em>To think about:</em></u> What must a celebrity endorsement always reflect? Honest opinion of the endorser. According to the Federal Trade Commission (FTC), endorsements must always reflect the honest opinions, findings, beliefs, or experience of the endorser. ... Endorsements are a form of advertising.
Answer:
(C) $745
Explanation:
The computation is given below:
For computing the bad debt expense, first we have to determine the ending account receivable balance which is shown below:
Ending account receivable balance = Beginning account receivable + credit sales - collections -
written off amount
= $20,000 + $70,000 - $74,700 - $400
= $15,300
So, the bad debt expense is
= Ending account receivable × given percentage
= $15,300 × 5%
= $745
Answer:
Share price : $ 56.23
Explanation:
CAPM
risk free = 0.05
market rate = 0.11
premium market = (market rate - risk free) 0.06
beta(non diversifiable risk) = 1.64
Ke 0.14840
Now, we solve for the present value of the future dividends:
year dividend* present value**
1 2.91 2.53
2 3.31 2.51
3 3.78 2.49
4 4.31 2.48
4 80.38 46.22
TOTAL 56.23
*Dividends will be calculate as the previous year dividends tiems the grow rate
during the first four year is 14%
then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:
(4.31 x 1.09) / (0.1484 - 0.09) = 80.38
Then we discount eahc using the present value of a lump sum:
We discount using the CAPM COst of Capital of 14.84%
last we add them all to get the share price: $ 56.23
