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2 years ago

Who determines how much utility an individual will receive from consuming a good?

Business

1 answer:

Artyom0805 [142]2 years ago

4 0

Answer:

Individuals are the only judge of their own utility. In general, greater consumption of a good brings higher total utility. However, the additional utility received from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility.

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Aluminum maker Alcoa has a beta of about 1.85, whereas Hormel Foods has a beta of 0.39. If the expected excess return of the ma

Nady [450]

Answer and Explanation:

The computation is shown below:

As we know that

According to the Capital Asset Pricing Model (CAPM) formula

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

And, the market rate of return - Risk-free rate of return is also known as the market risk premium

As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital

And, the higher rate is

= (Excess return of the market) × (Alcoa beta - Hormel foods beta)

= (3%) × (1.85 - 0.39)

= 3% × 1.46

= 4.38%

8 0

3 years ago

What is the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied

jeka57 [31]

Answer:

$1,609,000

Explanation:

Calculation to determine the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied

First step is to calculate the Unrecorded Patents Amortization

Unrecorded Patents Amortization

=$1,400,000-[($6,400,000 - $3,000,000)×30%] /10 years

Unrecorded Patents Amortization

=$1,400,000- ($3,400,000 × 30%)/10 years

Unrecorded Patents Amortization

=$1,400,000 - $1,020,000/10 years

Unrecorded Patents Amortization = $380,000 / 10 years

Unrecorded Patents Amortization= $38,000

Now let determine the Investment

Investment=$1,400,000 + $180,000 + $225,000 - $60,000 - $60,000 - $38,000 - $38,000

Investment= $1,609,000

Therefore the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied is $1,609,000

8 0

3 years ago

At the end of the accounting period, houston company had $12,000 of par value common stock issued, additional paid-in capital in

amid [387]

The amount of stockholder's equity is calculated as -

Total stockholder's equity = Common stock issued + Additional paid in capital + Retained earnings - Treasury capital

Total stockholder's equity = $ 12,000 + 11,000 + $ 12,000 - $ 4,000

Total stockholder's equity = $ 31,000

8 0

3 years ago

The basic economic problem results from not having enough resources to satisfy every need. a. True b. False

o-na [289]

Answer:

True

Explanation:

Because the less product means less sales and less happy people. Hope this helps.

7 0

3 years ago

Nueva Company reported the following pretax data for its first year of operations. Net sales 7,400 Cost of goods available for s

Ludmilka [50]

Answer:

Net Income $574

Explanation:

Calculation of Nueva's net income if it elects FIFO will be :

Net sales$7,400

Less Cost of goods sold ($4,806)

($5,610 − $804)

Gross profit 2,594

Operating expenses (1,638)

Income before taxes 956

(2,594-1,638)

Income tax 382.4

(40%×956)

Net income $574

(956-382.4)

Therefore the Nueva's net income if it elects FIFO would be $574

8 0

3 years ago