Answer:
C. Full employment, fixed supplies of resources, fixed technology, and two goods
Explanation:
Production Possibility curve: It is a curve that shows all possible combinations to the amounts of the two goods that can be produced with the available resources and technology.
In simple words, all resources which are used to produce the possible combinations are called full employment. Thus, these specific assumptions plays vital role in production possibilities curve.
So, A, B, and the D are incorrect options.
Answer:
<h2>
a. The Preferred stock is noncumulative.</h2>
Preferred stock
= 7,710 * 17.5 * 8%
= $10,794
Per share
= 10,794/7,710
= $1.40
Common Shareholders.
= 63,800 - 10,794
= $53,006
Per share
= 53,006/49,000
= $1.08
<h2>
b. Preferred stock is cumulative. </h2>
This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.
Preferred stock
= 7,710 * 3 years (2017,2018,2019)
= $23,130
Per share = 23,130/7,710
= $3
Common stock
= 63,800 - 23,130
= $40,670
Per share
= 40,670/49,000
= $0.83
c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.
<span>Jie should not change her consumption of either broccoli or rice for maximization of her utility , as she consumes three heads of broccoli and six bowls of rice each week. the price of a head of broccoli is $2 and the price of rice is $4 per bowl. jie's marginal utility from the last head of broccoli consumed is 4 utils and her marginal utility from her last bowl of rice is 8 utils</span>
Answer:
Alpha for A is 1.40%; Alpha for B is -0.2%.
Explanation:
First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.
Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;
Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;
Second, we compute the alphas for the two portfolios:
Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;
Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.
Answer:
$27,500
Explanation:
As mention in the question the company selling the 2000 seats
also the manufacturing cost is =$40
Direct labor cost =$15
As the seat company A =500 seats
So the Direct Material Cost= seat company A allotment *manufacturing cost
=500*40
=$20,000
Also the Direct labor cost =seat company A allotment *direct labor cost
=$500*$15
=$7500
Therefore the total relevant cost of the firm is
=Direct Material cost +Direct labor cost
=$20,000+$7500
=$27,500
