Ask question

Ask question

All categories

igor_vitrenko [27]

4 years ago

7

if more people try to buy a product because the price has been reduced, which of thr following most accuratly desribes what has

increased?

1 answer:

qaws [65]4 years ago

4 0

The demand has increased since they know that it is limited, and sooner or later, it will be sold out. Example: Black Friday

You might be interested in

Nick inherited $150,000, which he immediately invested into a fund that will earn 10% per annum. if interest is compounded semi-

UkoKoshka [18]

First calculate the effective interest rate because the problem says that the interest is compounded semi-annually. The formula for effective interest rate is ieff= [(1+i/n)^n] – 1. The calculated effective interest rate is 10.25%. The value of the investment in 5 years could be calculated using the equation, FV= PV (1+i)^n. The value of the investment then would be $244,334.194.

5 0

3 years ago

H cheng dishonored his note when presented for payment

EastWind [94]

The note may lack the essential requisites of being a negotiable instrument, that is why it is dishonored. And also if the consent of on of the parties is not clear or they have no meeting of minds when executing such promissory note then it can be dishonored because of its substantial insufficiency of the reason to give its consent.

4 0

4 years ago

Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 p

brilliants [131]

Answer:

We should pay $46.50 for this stock.

Explanation:

The stock value is the present value of all the future dividends associated with the stock.

Following is the working to calculate the stock value.

Dividend

Year Dividend

_1 ____$1.20

_2 ___ $1.44

_3 ___ $1.73

_4 ___ $2.07

Use following formula to calculate the present value of all the dividends

Present value of Dividend = Dividend value x ( 1 + Expected interest rate )^numbers of years

Now calculate the present value of al the dividends

Year __Working ___________________________ Present values

_1 ____$1.20 x ( 1 + 6% )^-1 ____________________ $1.132

_2 ___ $1.44 x ( 1 + 6% )^-2 ____________________ $1.282

_3 ___ $1.73 x ( 1 + 6% )^-3 ____________________ $1.453

_4 ___ $2.07 x ( 1 + 6% )^-4____________________ $1.640

_5 to onward ___ [$2.07 / ( 6% - 2% )] x ( 1 + 6% )^-4 _ $40.991

Total _____________________________________$46.498

We should pay $46.50 for this stock.

8 0

3 years ago

Compare and contrast Fixed-Order-Quantity and Fixed-Order-Interval systems. What are the characteristics, advantages and disadva

alexandr1967 [171]

Answer:

The Fixed-Order-Quantity method depends on when to order a fixed amount. The order will be placed when the inventory level reaches the reorder point. E.g. a new order is placed every time inventory level is below 100 units.

The Fixed-Order-Interval works differently, since the inventory level is checked every certain amount of time, and an order is made when the level is below an specific reorder point. E.g. inventory is checked every 2 weeks.

The main difference between both systems is that FOQ continuously checks the inventory level, while FOI checks the inventory level following a schedule. The FOQ should result in a more stable inventory level and number of orders.

The FOI requires a larger safety stock because the risk of selling more than expected always exists. E.g. you check inventory every 2 weeks, and you last checked a Tuesday. If suddenly a client places a large order on Wednesday, you are at risk of a stockout for 13 days.

8 0

3 years ago

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets total

VikaD [51]

Answer:

$538,000

Explanation:

EFN = [(assets/sales) x ($ Δ sales)] - [(liabilities/sales) x ($ Δ sales)] - [profit margin x forecasted sales x (1 - dividend payout)]

current sales = $5,000,000

change in sales = $1,000,000

assets $4,000,000

profit margin = 6%

1 - dividend payout = 45%

current liabilities that change in proportion to sales = $500,000

forecasted sales = $6,000,000

EFN = [($4,000,000/$5,000,000) x ($1,000,000)] - [($500,000/$5,000,000) x ($1,000,000)] - (6% x $6,000,000 x 0.45)

EFN = $800,000 - $100,000 - $162,000 = $538,000

4 0

4 years ago