Answer:
b) 156
Explanation:
Total utility is the total amount of satisfaction received by a consumer after consuming a given quantity of a product or service. In this question there is the total utility of five product.
Total utility = 162
utility of fifth product = 6
Total utility of other four products = Total utility - utility of fifth product
Total utility of other four products = 162 - 6 = 156
Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) = 
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
Answer:
D) A doubling of the price of salt led to 5 percent drop in the quantity of salt purchased.
Explanation:
Law of supply in economics says that when the price increases the supply too increases if other factors is is constant.
Therefore, among the given options the only option that is consistent with the law of supply is "A doubling of the price of salt led to a 5 percent drop in the quantity of salt purchased"
Answer:
Calculation of Net taxable income
Particulars Amount Amount
Interest income from savings interest $200
Interest income from certificate deposit $350
Dividend from saving account with $100
local credit union
Interest income from us treasury note $250
Tax exempt interest from municipality bond $500
Ordinary dividend <u>$1,700</u>
Gross total income $3,100
<u>Income exempt</u>
Dividend from saving account $100
Dividend from treasury note $250
Tax exempt interest from municipality bond <u>$500</u> <u>$850</u>
Net taxable income <u>$2,250</u>
Answer:
d. debit to an expense account and a credit to an asset account.
Explanation:
When a prepayment is made, the entries recorded are Debit prepaid expense and credit Cash account to recognize the amount prepaid.
As time passes and the expenses are incurred, the entries required are debit expense account and credit prepaid expense (an asset) with the amount of the expense incurred as a result of the passage of time.
