Answer
The question is incomplete; assuming that the market price is $5.
The answer will be consumer surplus decreases.
Explanation:
Consumer surplus is a measure of consumer welfare. It is measured as the difference between what customers are willing and able to pay for a good and the price they actually pay.
A increased demand for services needed or a signifigant overspending over a period of time without more revenue being deposited to even the balance
Answer:
$0.69 million or $690,000
Explanation:
Value of Firm Vₐ = $24.7 million
Debt D = $5.5 million
Shares S = 390,000 * 51 = $19.89 million
Therefore Value Vₓ = 5.5 + 19.89 = $25.39 million
We would expect Vₐ and Vₓ to be the same value. Therefore the decrease in the value of the company due to expected bankruptcy costs is
= $25.39 million - $24.7 million
= $0.69 million
Consolidation Rules Under GAAP
The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares
Answer: c. Requirements analysis
Explanation:
Requirements analysis deals with tasks that determine conditions to meet during a new project taking into consideration requirements that would be conflicting. This analysis is vital to the success or failure of the system. Mike carries out a requirement analysis by checking all the items that would determine the success of the project which if neglected would read to project failure.
