Ask question

Ask question

All categories

3 years ago

11

A farmer grows wheat, which she sells to a miller for $70. The miller turns the wheat into flour, which she sells to a baker for

$120. The baker turns
the wheat into bread, which she sells to consumers for $135.

1 answer:

nadezda [96]3 years ago

6 0

What is the question? Please be specific.

You might be interested in

Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t

CaHeK987 [17]

Answer:

The profit that they keep to reinvest in the business is recorded as D : retained earnings.

Explanation:

Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.

4 0

3 years ago

3. Which of the following is NOT a factor of production?

Tju [1.3M]

Answer:

Output.

Explanation:

because it is an effect of production but not a factor.

3 0

3 years ago

Read 2 more answers

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon i

Nina [5.8K]

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is consistent with the efficient markets hypothesis if the earning were not as high as anticipated

The efficient market hypothesis states that neither technical nor fundamental analysis can generate excess returns because new information in the market is immediately reflected in stock prices.

The efficient market hypothesis is a hypothesis in financial economics that states that asset prices reflect all available information. A direct consequence of this is that it is impossible to "beat" the market consistently on a risk-adjusted basis, as market prices should only respond to new information.

Learn more about efficient markets hypothesis here: brainly.com/question/14311423

#SPJ4

3 0

2 years ago

Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75%

deff fn [24]

Answer:

15.29%

Explanation:

Calculation to determine What would be the estimated cost of equity if the firm used 60% debt

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta= (11.5%- 5%)/6%

Original beta= 6.5%/ 6%

Original beta= 1.083

Second step is to calculate the Original D/E using this formula

Original D/E = D/A / (1-D/A)

Let plug in the formula

Original D/E= .25/ (1-.25%)

Original D/E= .333

Third step is to calculate the Unlevered Beta using this formula

Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.4) x .333

Unlevered Beta=.90

Fourth step is to calculate the Target using this formula

Target =D/e

Let plug in the formula

Target = .6/.4

Target= 1.5

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta = .90 *(1+(1.5)*(.6)

New Beta = 1.71

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 1.71*6

rs= 15.29%

Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%

4 0

3 years ago

The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of ch

Ira Lisetskai [31]

Answer:

The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of chickens by a per-unit subsidy. If it wants to study the substitution effect of this subsidy, the government should imposed a Lump-sum tax.

False

Explanation:

The government should have imposed a lump-sum subsidy if it really wanted to study the substitution effect of the subsidy instead of imposing a lump-sum tax. This subsidy should be granted to chicken farmers to reduce their production costs, which will in turn reduce the cost of chicken to the consumers. A lump-sum tax sounds like a contradictory effort to offset the high cost of chicken on the consumers.

6 0

3 years ago