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Hitman42 [59]
3 years ago
9

Assume a firm is a monopoly and enjoys​ $10 million profits per year. The firm lobbies to have a moratorium passed by Congress o

n new firms in its market for the next 25 years. If there is no discount​ rate, how much would the firm be willing to pay to deter​ entry? A. ​$250 million. B. ​$100 million. C. ​$250 billion. D. ​$25 million.
Business
1 answer:
shtirl [24]3 years ago
4 0

Answer: A. $250 million

Explanation:

The firm is a Monopoly and is lobbying Congress to remain that way. As a monopoly it makes $10 million a year and wants to remain a monopoly for the next 25 years.

Assuming there is no discount rate which means that the value of money stays the same over the 25 years, if they succeed in Congress, they have a chance to make a total profit of,

= 10 million * 25 years

= $250 million

If the maximum amount the firm can make if the lobbying is successful is $250 million, this is the maximum they will pay to lobby for a deterrence to entry. If they pay any amount more than $250 million, they will be making a loss and therefore it would make no sense to spend that amount of the lobbying.

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Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,200
inn [45]

Answer:

$31,312,440  

Explanation:

Working for Net Income Calculation is attached in MS Excel File Format with this answer, Please Fins it.

Net Income =  $29,977,440

As we know that the depreciation is a non cash expense, so it will be added back to the net income to calculate the Operating cash flow.

Operating Cash Flow = Net Income + Depreciation

Operating Cash Flow = $29,977,440  + 1,335,000

Operating Cash Flow = $31,312,440  

Download xlsx
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3 years ago
After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what s
inna [77]

The stage of the customer journey of Anna is the Purchase phase.

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Customer's journey. is defined as the active research process someone goes through leading up to a purchase. It is called a journey because each one of your prospective customers will be at different points in their journey towards a purchase.

Learn more about the Purchase phase here brainly.com/question/27975123

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2 years ago
What types of documents can workers create using DTP? advertisements envelopes databases note cards spreadsheets
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3 years ago
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_____ refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully
IceJOKER [234]

Answer:

The explanation of this question is given below in the explanation section.

Explanation:

The correct answer to this fill in blank question is  workforce capability.

<u>The term workforce capability</u> refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully deliver products and services to customers, including the ability to meet seasonal and varying demands.

Workforce Capability:

The term “workforce capability” refers to your organization’s ability to accomplish its work processes (might include all process to produce the product or service) through the knowledge (accumulated intellectual resources of organization),  abilities, skills, and competencies of its people.

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8 0
3 years ago
CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
UkoKoshka [18]

Answer:

The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

Explanation:

We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.

Using the CAPM we can calculate the required rate of return as,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on Market

So,

r = 0.04 + 0.4 * (0.11 - 0.04)

r = 0.068 or 6.8%

As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.

The present value of a perpetuity is calculated as follows,

Present Value of perpetuity = Cash Flow / r

Present value of perpetuity = 10000 / 0.068

Present value of perpetuity = $147058.8235

So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

3 0
3 years ago
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