There are options available for Lyman :
Either he
- Sell his equity to his investors, ( which mean that he have to give away a percentage of his company)
- Or he can get some Loans
I he should consider Loans, because his annual revenues already way higher than the amount of loans that he need, he could easily paid it off
Answer:
the value of the MktRS (market rate of substitution) is 0
Explanation:
The computation of the market rate of substitution is shown below:
Since it is mentioned that
You like apples half as pears
So the equation would be
X = 1 ÷ 2 Y
X ÷ Y = 1 ÷ 2
Now the market rate of substitution of the price is
= $2 ÷ $4
= 1 ÷ 2
So,
= 1 ÷ 2 - 1 ÷ 2
= 0
Hence, the value of the MktRS (market rate of substitution) is 0
The same is to be considered
Answer:
they have the prime market I think? I don't see any options on here to know what direction the question is going.
<span>If supply for a product is high but demand is low, the one that most likely needs to happen to achieve equilibrium is: B. The price of the product must go down.
High supply of product will create an abundance in the market. By lowering the price of the product, it will attract more consumers for that product (icnreasing its demand) and will eventually lower the product abundance and bring the curve into equilibrium</span>
Answer:
$236,250
Explanation:
The computation of external financing is shown below:-
For computing the external financing first we need to find out the retained earning which is shown below:-
Net income = Sales × Profit margin
= $2,500,000 × 15%
= $375,000
Increase in retained earning = Net income - Dividends
= $375,000 - ($375,000 × 35%)
= $375,000 - $131,250
= $243,750
External financing = Increase in assets - Increase in retained earning
= $480,000 - $243,750
= $236,250
