Answer:
The correct answer is (b)
Explanation:
The kids opened their own lemonade stand which led to an increase in the overall supply of lemonade. The increase in the overall supply of lemonade will lead to a decrease in the equilibrium price. Now, Sabrina must decrease the price of lemonade to compete with competitors. Increase in market competition always leads to a decrease in equilibrium price.
Answer:
b. the number of common shares outstanding is 930,000 and the stock split is $4.
Explanation:
Please see attachment
The answer to this problem is "FALSE". It is not true that a common stockholder has no guarantee of receiving any cash flows, but receives what is left after all other claims in the firm's income and assets have been satisfied. The truth is common stockholders are the true owner of the firm. They are also sometimes called as the residual owner or the residual claimants. They took the residual claims on the firms and they are very assured that they cannot lose the amount that they invested in the firm.
Answer:
Enrique
a) Accounting profit = $114
b) Economic profit (loss) = ($136)
Explanation:
a) Data and Calculations:
Monthly Rent = $1,600
Cost price of flowers = $2 per bunch
Selling price of flowers = $3 per bunch
Operations are for 7 days (8 hours daily) = 56 hours
Quantity of flowers sold per day = 100 bunches
Quantity of flowers sold per week = 700 (100 * 7)
Employee hours = 5 * 3 + 2 * 8 = 31 hours
Hours worked by Enrique = 25 (56 - 31)
Employee wages = $186 ($6 * 31)
Opportunity cost: Enrique = 25 * $10 = $250 per week
Accounting profit:
Sales revenue ($3 * 700) = $2,100
Cost of sales ($2 * 700) = 1,400
Gross profit $700
Expenses:
Rent ($1,600/4) = 400
Employee wages = 186 586
Accounting profit = $114
Economic profit:
Accounting profit $114
Opportunity cost 250
Economic loss = $136
Whats the question? Please specify. And don't end your sentances with whatever this is:, k?