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Mariulka [41]
3 years ago
8

The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 is:______

Business
1 answer:
aliina [53]3 years ago
8 0

Answer:

the price elasticity of demand is 1

Explanation:

The price elasticity of the demand using mid point formula is as follows:

Price elasticity of the demand is

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 36 - 30

= 6

And, average of quantity demanded is

= (36 + 30) ÷ 2

= 33

Change in price is

= P2 - P1

= $12 - $10

= $2

And, the average of price is

= ($12 + $10) ÷ 2

= 11

So, the price elasticity of demand is 1

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Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the
shutvik [7]

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

  • The $286,827 that they receive is the market price/ market value of the bond.
  • The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
  • Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
  • The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
  • <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
3 0
3 years ago
There are three
Lana71 [14]

The correct alternative is letter C. Inflation control. This is the first strategy to control the currency in the economy, being one of the main objectives of monetary policy in a country.

<h3 /><h3>What is monetary policy?</h3>

It is the set of governmental strategies and actions to interfere in the investment market and in the consumption power of citizens, through the control of the basic interest rate of the economy, which is an instrument capable of influencing the value of a currency and the prices of goods. consumption, thus generating a control over inflation in search of economic balance in a country.

Therefore, controlling inflation is a short-term measure that generates a series of impacts on an economy, such as fiscal and monetary contraction measures, such as increasing taxes and reducing public spending.

Find out more about monetary police here:

brainly.com/question/13926715

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8 0
1 year ago
Adams Corporation's present capital structure, which is also its target capital structure is
kaheart [24]

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 ×\frac{Retention ratio}{Equity share}

= $21,000 × \frac{0.70}{0.60}

= $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) = \frac{Do(1+g)}{P(1-0.20)} + 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%

5 0
3 years ago
What is goodwill in a business sale and why is it amortized in the business financial statements
astra-53 [7]

Answer:

See below

Explanation:

Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.

The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.

Goodwill is amortized because the business benefits from the goodwill for many years.  In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.

7 0
3 years ago
Comparison of product features is part of the ____ phase of the decision-making process
slava [35]
The evaluating alternatives part of the decision-making process!
7 0
3 years ago
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