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Alborosie
3 years ago
7

Morrow Corp. has an EBIT of $925,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the c

ompany is 13 percent and the corporate tax rate is 25 percent. The company also has a perpetual bond issue outstanding with a market value of $2.55 million.
What is the value of the company?
Business
1 answer:
Vladimir79 [104]3 years ago
7 0

Answer:

The answer is given below;

Explanation:

WACC=EBIT*(1-t)/(E+D)

13%=$925,000*(1-25%)/(E+D)

E+D=$693,750/.13

E+D=$5,336,538

Where E+D is market value of firm

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A monopolistically competitive market A. is imperfectly competitive, and all imperfectly competitive markets are monopolisticall
Gala2k [10]

Answer:

D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.

Explanation:

Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.

4 0
3 years ago
Read 2 more answers
Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox was using a(n) _____ strategy to help reco
34kurt

Answer:

c. skimming pricing

Explanation:

Based on the information provided within the question it can be said that in this scenario Xerox was using a skimming pricing strategy to help recover the cost of its research and development. This is a pricing strategy in which the company places a really high initial price for it's new product, but then goes lowering the price as time passes. This also makes individuals believe that they are getting a bargain when prices begin to drop and decide to buy more.

3 0
3 years ago
Economic problem you face as an individual​
Stells [14]

Answer:

I'm spending WAY too much money on my favorite snack which are purple Doritos. / The Dorito company is having a huge shortage of my favorite snack which are the purple Doritos and I don't know what to do!

Explanation:

Remember what economics is when you are asked this question. Economics basically are along the lines of distribution and consumption of goods could mean internationally or it could just mean in your state. If you have a favorite snack that you like to buy from stores whenever you go to them, you buying and taking that snack is basic economics, you have a demand for that product because you like it so much, and they (owners of the snack) have a supply of that demand so you then spend money (currency) in order to get that demand or snack which is basic economics. A problem in this scenario would be you spending too much money on your favorite snack, or the supplier of that snack is having a shortage and you can't buy your favorite snack as much as you want.

Hope this helps.

7 0
3 years ago
Read 2 more answers
Check my work Check My Work button is not enabled Item 4 Item 4 1 points Item Skipped The following data from the just completed
Trava [24]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Sales $ 660,000

Direct labor cost $ 86,000

Raw material purchases $ 135,000

Selling expenses $ 109,000

Administrative expenses $ 46,000

Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000

Inventories Beginning Ending Raw materials $ 8,200 $ 10,800

Work in process $ 5,000 $ 20,600

Finished goods $ 74,000 $ 25,900

1) cost of goods manufactured:

Beginning Work in process $ 5,000

Inventories Beginning Raw materials $ 8,200

Raw material purchases $ 135,000

Ending inventories Raw materials $ 10,800  (-)

Direct labor cost $ 86,000

Manufacturing overhead applied to work in process $ 205,000

Ending Work in process $ 20,600 (-)

Total= $407,800

2) Cost of goods sold:

Beginning Finished goods $ 74,000

cost of goods manufactured $407,800

Ending finished goods $ 25,900 (-)

Underapplied overhead= 20,000 (+)

Total COGS= $475,900

3) Income statement:

Sales= 660,000

COGS= 475,900

Gross income= $184,100

Selling expenses $ 109,000

Administrative expenses $ 46,000

Net operating income= $29,100

6 0
2 years ago
A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result
Mariana [72]

Answer:

a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease

Explanation:

Here are the options

a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.

a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.

a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.

a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :  

1. A change in the price of input  

2. A change in the number of suppliers  

3. Government regulations  

A decrease in the demand for eggs would lead to a leftward shift of the demand curve for eggs. Price and quantity would fall as a result.

a decrease in the supply of eggs would lead to a leftward shift of the supply curve for eggs. Price would increase and quantity would fall.

Taking these two effects together, there would be a fall in equilibrium quantity and equilibrium price can either rise or fall depending on if demand or supply has a greater effect.

7 0
3 years ago
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