Question 1

Which of the following best describes the main difference between scarcity and a shortage? a. while a shortage is a temporary ma

blsea [12.9K]

Answer:

The answer is <u>A.)</u>while a shortage is a temporary market condition, scarcity is an ongoing condition in the world.

Explanation:

It will not stop in the world no matter what it is a problem ethier way in the world.

6 0

2 years ago

Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are

Alisiya [41]

Answer:

The answer is $47,000

Explanation:

Accounting profit profit doesn't consider opportunity cost. So the value for opportunity cost will be left out. It is Economic profit that considers opportunity cost.

Accounting profit = revenue - cost(explicit cost which is all cost involved in directly running the business e.g cost of sales, electricity cost, wage etc.)

Revenue = $64,000

Explicit cost = $17,000

Therefore, Accounting profit is

$64,000 - $17,000

=$47,000

8 0

3 years ago

Knowledge Check 01 Zeta Corporation issues $100,000 of 8% bonds maturing in 10 years on January 1, Year 1, when the market rate

alexandr1967 [171]

Answer:

$106,595

Explanation:

Given:

Initial market rate = 9%

Dropped market interest rate, r = 7% per year

or

= 7% × [6 ÷ 12]

= 3.5% = 0.035

Remaining time, n = 9 years = 18 semi annual periods

Now,

Value of the bond at the retirement

= [ PVAF × Interest payment] + [ PVF × face value]

here,

Present value of annuity factor, PVAF = $\frac{1 -(1+r) ^{-n}}{r}$

or

PVAF = $\frac{1 -(1+0.035) ^{-18}}{0.035}$

or

PVAF = 13.189

And,

Interest payment = $100,000 × 8% × [6 ÷ 12 ] [since, 8% bonds]

= $4000

Present value factor = $\frac{1}{1.035^{18}}$

= 0.538

par value = $100,000

= [13.189 × $40] + [0.538 × 100,000]

= 52,758.7316 + 53,836.114

= $106,595

Hence,

The correct answer is option $106,595

8 0

4 years ago

stock is not expected to pay dividends until three years from now. The dividend is then expected to be $2.00 per share, the divi

Gnesinka [82]

Answer:

The value of the stock today is closest to $53.15

Explanation:

Under the Gordon Growth Model, the share price of share can be calculated as follow

Price of share = D / ( k - g )

Where:

D = End of the first period Dividend

k = Required Rate of Return

g = Expected growth rate

g can be calculated as follow

g = Retention Rate x and ROE

g = ( 1- Dividend Payout Ratio ) x ROE

g = ( 100% - 40% )x 15% = 60% x 15% = 9%

D = $2

k = 12%

Dividends will start at year 3. This will be after 2 years of the end of the year dividend.

Year 3 share Price = $2 / ( 12% - 0.09% )

Year 3 share Price = $66.67

Discounting the year 3 share price back to today's value,

Today's share price = Year 3 share Price / ( 1 + required ROR )^n

Today's share price = 66.67 / ( 1 + 12% )^2

Today's share price = $53.15

6 0

3 years ago

True or False: Contributions received in a prior period and restricted by the donor for construction of a building were reported

noname [10]

Answer:

The correct answer is False.

Explanation:

If the contribution is for the subsequent acquisition of assets, in the same way as in the previous point it is carried as deferred income and amortized in line with the depreciation of the acquired asset, as amortization of deferred contributions.

Permanently restricted contributions are taken to this category in net assets and correspond to those that are represented in assets that must be kept in perpetuity.

Unrestricted contributions used in the year are taken directly to income; if they are not used in the year they are taken as part of the net assets without restrictions.

If the board of directors or equivalent body decides to allocate an unrestricted contribution item for a special purpose, it is carried as an internally restricted net asset.

Contributions with temporary restrictions are carried as part of the temporarily restricted net asset.

7 0

3 years ago