Answer: Option (d) is correct.
Explanation:
Correct option: Market price is greater than marginal cost.
In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.
At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.
Therefore, option (d) is not true.
Answer:
A. III only
Explanation:
One of the very useful tools in project management analysis is the PERT and CPM.
PERT (Program evaluation and review technique) provides valuable information regarding which activities need to be closely watched.
While CPM (Critical Path Method) helps in determining the time required to complete each task, and the minimum time required to complete a project.
Both CPM and PERT serve similar purposes by helping to determine projects or activities that need to be watched closely.
Answer:
5%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
The interest rate implicit in the agreement can be determined by finding the internal rate of return.
Cash flow in year 0 = $-196,401
Cash flow each year from year 1 to 7 = $33,942
IRR = 5%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
Cost of Good Sold Using Fifo $40,570
Ending inventory using Fifo $3,600
Ending inventory Using Specific Identification can not be calculated as the total sales (555) exceeds the available inventory (510)
Explanation:
Answer:
$10.08
Explanation:
First, find dividend per year;
D3 = 0.50
D4 = 0.50(1.35) = 0.675
D5 = 0.675 (1.35 ) = 0.9113
D6 = 0.9113 (1.07) = 0.9751
Next, find the present value of each dividend at 13% rate;
PV (of D3) = 0.50/(1.13^3) = 0.3465
PV (of D4) = 0.675/(1.13^4) = 0.4140
PV (of D5) = 0.9113/(1.13^5) = 0.4946
PV (of D6 )= 8.8209
Add the PVs to find the stock price;
= 0.3465 + 0.4140 + 0.4946 + 8.8209
= $10.08
