Answer:
a) see attached graph. There is nothing unusual with the supply curve, it is simply fixed. This happens to most services, e.g. there is a fixed number of hotel rooms available for rent, in the short run you cannot add more rooms per night if the demand increases. In order to increase the quantity supplied, you would need to build a larger hotel, or in this case, a larger stadium.
b) the equilibrium price is $8 and the equilibrium quantity is 8,000 tickets
c) if the college plans to increase enrollment, the demand might increase, leading to a higher equilibrium price, but the supply will remain the same until the stadium is expanded.
Explanation:
Price Quantity Demanded (Qd) Quantity Supplied (Qs)
$4 10,000 8,000
$8 8,000 8,000
$12 6,000 8,000
$16 4,000 8,000
$20 2,000 8,000
Answer:
b. depreciation reduces both the pretax income and the net income.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.
Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.
In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.
Generally, it can be deduced from an income statement that depreciation reduces both the pretax income and the net income of a business firm or an organization.
I think the most appropriate answer would be D. As other answers has nothing to do with this question.
I hope it helped you!
Answer:
The company's cost of capital will be "13%".
Explanation:
The given values are:
Risk free rate
= 5
Beta
= 1.25
Market risk premium
= 8
Now,
⇒ 
On substituting the estimated values, we get
⇒ 
⇒ 
The total value will be:
= 
= $
As we know,
⇒ 
⇒ 
⇒ 
⇒ 
Note: % = percent
Answer:
Vans
To keep its dealer network intact and supportive even after opening a corporate store in their market,
Vans should not compete directly with its dealer network stores, especially based on lower prices. It must ensure that its prices are at similar levels with those offered by its dealers.
Explanation:
Vans can also differentiate the products in the corporate store from those offered by the dealer networks. It can offer its products for bulker purchases than those offered by the dealers. It can also inform its dealers that the corporate store in their market exists to offer close-by support to the dealers instead of competing with them. The corporate store may be a way to undertaking extensive advertisements and publicity that will rub off favorably on the dealers.
