Answer:
$150,000
Explanation:
Calculation for the amount of Cash raised for the Levy Company
Using this formula
Cash raised for Levy Company = Number of Bonds * Face value of the Bond
Let plug in the formula
Cash raised for Levy Company = 100 * $1,500
Cash raised for Levy Company = $150,000
Therefore the amount of Cash raised for the Levy Company will be $150,000
Answer:
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Answer:
The question is not clear and complete.
Let me explain how you can calculate Enterprise Value (EV) to Revenue Multiple
Explanation:
A Enterprise Value (EV) to Revenue Multiple is used to value a business by dividing its enterprise value by its annual revenue. The formula to calculate the Enterprise Value (EV) to Revenue Multiple is EV/Revenue
EV = Enterprise Value
EV can be denoted as (Equity Value + All Debt + Preferred Shares) – (Cash and Equivalents)
While Revenue = Total Annual Revenue
This can be calculated when we have a share price, shares outstanding, debt, and cash or its equivalence.
Answer:
keep producing in the short run but exit the industry or go out of business in the long run
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.
A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run
