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3 years ago

When the market price of a good is above its equilibrium value, and all other determinants are unchanged?

Business

1 answer:

serg [7]3 years ago

5 0

This is considered a surplus. When this happens a surplus happens within a market. Hope this helps.

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TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc

alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = $\frac{45,000}{2,500}$ = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0

3 years ago

What does the business cycle shown on this graph suggest about the condition of the economy at point A?

miv72 [106K]

Answer:

C the Ecenomy has been well for while and is

at its highest piont of the cycle

Explanation:

hope it helps

8 0

3 years ago

Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs a

KiRa [710]

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000 + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

5 0

3 years ago

Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $63,000 per

pshichka [43]

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

180,000 - 63,000= 9,000x

117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

3 0

3 years ago

Experience indicates that strategic alliances Group of answer choices work best when they are aimed at achieving a mutually bene

nikdorinn [45]

Answer: Stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals

Explanation:

Strategic alliance occurs when two or more companies join hands together in order to achieve strategic outcome that's mutually beneficial to the parties involved.

It should be noted that companies to into Strategic alliance in order to improve market access, improve supply chain efficiency and to also gain economies of scale.

Lastly, it should be noted that strategic alliances stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals.

3 0

3 years ago