Answer:
Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. ... All these factors restrict the entry of other sellers in the market.
Explanation:
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Answer:
4.90%
Explanation:
The computation of the expected future growth rate of the dividend is shown below:
Price of the stock = Next year dividend ÷ (Required rate of return - growth rate)
$72.80 = $2.84 ÷ (8.8% - growth rate)
After solving this, the growth rate is 4.90%
We simply applied the above formula so that the approximate growth rate could come
Answer: Esquire should purchase Machine B because it has a lower present value.
Explanation:
Present value cost of Machine A:
= Initial investment + Present value of costs - Present value of sales amount
Present value of cost = 900 * Present value annuity factor, 10 years, 8%
= 900 * 6.7101
= $6,039
Present value of sales amount = 2,835 / (1 + 8%)¹⁰
= $1,313.15
Present value cost = 27,000 + 6,039 - 1,313.15
= $31,725.85
Present value of Machine B:
= 22,500 + 3,600 / 1.08³ + 4,500 / 1.08⁶ + 5,400 / 1.08⁸
= 30,198.18
<em>Esquire should purchase Machine B</em>
Answer: Lucy can sue Andrew as she is a donee beneficiary of the contract
Explanation:
From the question, we are told that Susan wanted to give a diamond pendant to Lucy, who is her daughter. Susan then entered into a contract with Andrew, who is a dealer that specializes in diamond jewelry.
Susan had promised to pay him if he delivered the pendant to Lucy but later Andrew withdrew from the contract and Lucy wanted to sue him.
In this case, Lucy cannot sue Andrew because she is a donee beneficiary. It should be noted that as a donee beneficiary of the contract, the will only get the benefit of the contract as a gift but the contract is really between Susan and Andrew. She is not a party to the contract technically.
Answer:
A. 0.21
B. $378
Explanation:
1. Calculation for the company's contribution margin (CM) ratio
Fist step is to calculate the CM
CM = 308,000 - $243,320
CM= 67,320
Now let calculate the CM Ratio
Using this formula
CM / Sales = CM Ratio
Let plug in the formula
CM Ratio = 64,680 / 308,000
CM Ratio = 0.21
Therefore the company's contribution margin (CM) ratio is 0.21
2. Calculation for the estimated change in the company's net operating income if it can increase total sales by $1,800
Estimated change in the company's net operating income=CM Ratio x 1,800
Estimated change in the company's net operating income= 0.21*$1,800
Estimated change in the company's net operating income=$378
Therefore the estimated change in the company's net operating income if it can increase total sales by $1,800 is $378