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blagie [28]
3 years ago
14

Charlie Plopp is selling a horse. If he does not sell the horse, then he gets no revenue. Three types of people are interested i

n buying the horse: professional cowboys who value the horse at $H, recreational riders who value the horse at $M, and glue factory representatives who value the horse at $L, where H>M>L. There are two buyers visiting Charlie's barn, and while Charlie can't tell what type of buyers they are, he knows that each one is independently and equally likely to be one of the three types. He is considering two methods of selling the horse: Method 1: He posts the horse at a price of $M. Method 2: He runs a sealed-bid auction and sells to the highest bidder at the second highest bid. Assume bidders bid rationally, and if a buyer is indifferent between buying and not buying, he buys. Charlie gets higher expected revenue from Method 2 if and only if which of the following conditions holds?
A) H+ 5L > SM
B) H+4L > 7M
C) 2H + 5M > 4M
D) H+ 5L <8M
E) H+ 5L <5M
Business
1 answer:
qaws [65]3 years ago
8 0
I think it’s E if not then it’s C
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Hot Shot Delivery Inc. provides the following year end data:
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Answer:

c. 42.6%

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Average total assets = $667,000

Average total assets = $333,500

Net income = $112,000

Interest expenses = $30,000

Return on total assets = Net income + Interest expenses / Average total assets

Return on total assets = $112,000 + $30,000 / $333,500

Return on total assets = 0.42388060

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4 0
3 years ago
A company's board of directors votes to declare a cash dividend of $1.00 per share of common stock. The company has 20,000 share
matrenka [14]

Answer:

$14,500

Explanation:

From the above, the below details are given;

Authorized share capital , which represent maximum number of shares that a company is allowed to issue.

Issued shares, which is the number of shares issued by a company including shares purchased and backed by a company(treasury stock).

There is also outstanding shares which is treasury stock less issued shares.

We do also know that treasury stock does not have any right of dividend because the shares are held by the company hence cannot pay dividend to itself.

Therefore, the total amount of the cash dividend is = 14,500 × $1.00

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7 0
3 years ago
A firm with sales of​ $1,000,000, net profits after taxes of​$30,000, total assets of​ $1,500,000, and common​ stockholders' inv
tigry1 [53]

Answer:

The firm has a return on equity of​ D. 4 percent

Explanation:

Return on equity (ROE) helps an investor see how much after-tax profit a company gained for each dollar in equity, is calculated by formula:

Return on equity (ROE) = Net income/shareholder's equity

The firm has  net profits after taxes of​ $30,000 and common​ stockholders' investment of​ $750,000 - shareholder's equity.

ROE = ($30,000/$750,000) x 100% = 4.00%

7 0
3 years ago
Garcon Inc. manufactures electronic products, with two operating divisions, Consumer and Commercial. Condensed divisional income
leonid [27]

Answer:

1.Since there is spare capacity in the consumer division, the acceptable transfer prices are variable cost per unit - market price per unit

i.e. $104-$150

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2. Income will increase as follows:

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3) check the attached file

4.Income will increase as follows:    

Consumer Division = (126-104)*2880 = $63,360    

Commercial Division = (150-126)*2880 = $69,120    

Company = $132,480

Explanation:

check attached files for explanation well detailed.

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