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valentina_108 [34]
3 years ago
7

Suppose the equilibrium price of a pound of potatoes in all U.S. states is initially $1.20. Further, suppose there is an increas

e in potato demand in all U.S. states except West Virginia. This increase in demand causes potato prices in all U.S. states, except West Virginia, to increase. If the law of one price holds, potato sellers will eventually adjust the relative quantity of potatoes they sell in all U.S. states, including West Virginia. After this adjustment:_______.
A) the West Virginia potato supply curve will shift rightward.
B) the West Virginia potato demand curve will shift rightward.
C) potato prices in West Virginia will fall and potato demand will increase in all other U.S. states.
D) the price of a pound of potatoes in all states that share a border with West Virginia will not change.
E) the price of a pound of potatoes in all states that share a border with West Virginia will fall.
Business
1 answer:
Rudik [331]3 years ago
7 0

Answer:

A) The West Virginia potato supply curve will shift rightwards.

Explanation:

When the demand for potato increase its prices will go upwards. All the U.S. states have high demand for potato except West Virginia. The West Virginia will have increased supply because the demand is lower which will cause the price to be lower. The supply curve will shift rightwards because of law of one price.

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Anastaziya [24]

Answer:

Part 1:

Book\  value\  per\  share\  of\ the\  preferred=\$25

Book\ value\ per\ share\ of\ the\ common\ stock=\$17.6428

Part 2:

Book\  value\  per\  share\  of\ the\  preferred=\$28

Book\ value\ per\ share\ of\ the\ common\ stock=\$16.7857

Explanation:

Part 1: (the book value per share of the preferred and common stock under No preferred dividends are in arrears)

Book value per share of the preferred :

Book\ value\  per\  share\  of\  the\  preferred=\frac{(Preferred\ Stock+Cumulative\ dividends)}{Number\ of\ shares\ of\ preferred\ stock}

In our case Cumulative dividends=0

Book\  value\  per\  share\  of\ the\  preferred=\frac{\$250000+0}{10000} \\Book\  value\  per\  share\  of\ the\  preferred=\$25

Book value per share of the common stock:Book\ value\ per\ share\ ofthecommonstock=\frac{Stockholder\ equity-Preferred\ Stock-Cumulative\ dividends}{Number\ of\ shares\ of\ preferred\ stock}In our case Cumulative dividends=0

Book\ value\ per\ share\ of\ the\ common\ stock=\frac{\$867500-\$250000-\$0}{35000} \\Book\ value\ per\ share\ of\ the\ common\ stock=\$17.6428

Part 2:

Annual Preferred Dividend=4%*$25*10,000=$10,000

Three years of preferred dividends are in arrears= 3*Annual Preferred Dividend

Three years of preferred dividends are in arrears= 3*$10000=$30,000

Formula for  the book value per share of the preferred is same as above,so we will direct calculate:

In our case Cumulative dividends=$30,000

Book value per share of the preferred :

Book\  value\  per\  share\  of\ the\  preferred=\frac{\$250000+\$30000}{10000} \\Book\  value\  per\  share\  of\ the\  preferred=\$28

Book value per share of the common stock:

Formula for  the book value per share of the common stock is same as above,so we will direct calculate:

Book\ value\ per\ share\ of\ the\ common\ stock=\frac{\$867500-\$250000-\$30000}{35000} \\Book\ value\ per\ share\ of\ the\ common\ stock=\$16.7857

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3 years ago
Why is understanding the relationship between the cash conversion cycle (CCC) and net working capital important to the contempor
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Understanding the relationship between cash conversation cycle and contemporary business executive aims at knowing the business needs funds to operate and building strategic alliances, make money and propose ideas that will sustain and elevate it's strength for some time. Money is vital in running business operations, as organizations will foot bills and do some expenditure and sought out ways to earn more business.

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A real-world question. You have just earned a technical" Bachelor of Science degree. A great job awaits you if you have a master
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Answer:

Explanation:

Following things should be in mind for selecting the institute:

The university from which he is going to do his masters is somewhere connected to the technical line is better as he can learn management skills while also practicing on technical skills.

One can also keep in mind the distance of the college as it would add a expense on his pocket. it also saves time when the college is near.

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Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the
nexus9112 [7]

Answer:

c. $11,480

Explanation:

Given that

               Cost recovery allowed                Cost recovery allowable

Year 1         $16,000                                                $8,000

Year 2        $9,600                                                  $12,800

Year 3        $5,760                                                  $7,680

The computation of gain should Tara recognize is shown below:-

Cost                                           $40,000

Less:

Greater cost of recovery

allowable or allowed

Year 1                $16,000

Year 2               $12,800

Year 3               $7,680            $36,480

Adjusted basis                          $3,520

Gain to be recognized = Residual value - Adjusted basis

= $15,000 - $3,520

= $11,480

So, for computing the gain to be recognized we simply deduct the adjust basis from residual value.

7 0
4 years ago
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