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2 years ago

What is the difference between a monopolistically competitive demand curve and a perfectly competitive demand curve

1 answer:

4 0

The demand curve for a perfectly competitive firm is completely elastic and a horizontal line. Monopolistically competitive demand curve is downward sloping and is more elastic than monopoly because there are more substitutes.

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The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.9 million in long-term debt, $770,000 in the common stock account

Naddika [18.5K]

Answer:

OCF = -$1,670,000

Explanation:

To calculate this, the following are first calculated:

Cash flow to creditors = Interest expense - (Long-term debt in 2009 - Long-term debt in 2008) = $230,000 – (3,500,000 – 2,900,000) = -$370,000

Cash flow to stockholders = Dividends paid – ((Common stock in 2009 + Additional paid-in surplus in 2009) - (Common stock in 2008 + Additional paid-in surplus in 2008)) = $550,000 – (($985,000 + $8,250,000) – ($770,000 + $6,000,000)) = -$1,915,000

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders = -$370,000 - $1,915,000 = $2,285,000

The the firm's 2009 operating cash flow, or OCF can now be calculated as follows:

Cash flow from assets = OCF - Net working capital investment - Net capital spending

-$2,285,000 = OCF - (-$165,000) - $780,000

-$2,285,000 = OCF + $165,000 - $780,000

OCF = -$2,285,000 - $165,000 + $780,000 = -$1,670,000

3 0

2 years ago

Juan was considering purchasing an interest in a tax-exempt bond fund for $100,000 when he discovered that the interest must be

myrzilka [38]

Answer:

The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Explanation:

Calculatation of the after-tax return on both bonds

1)The double-exempt bond does not pay state or federal income taxes.

After-tax return =

Before-tax return = 4.9%

2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.

Interest Income (100,000 * 5%) 5,000

Less: State taxes at 10% (5,000* 10%) (500)

Tax benefit from deduction of state taxes on federal return (500 * 35%) 175

After-tax Income 4,675

After-tax return = 4,675/100,000 = 4.675%

Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.

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3 years ago

After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As

s2008m [1.1K]

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

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2 years ago

Multi-item indexes are unable to account for dual sources of status (both men and women) in american households because they?

Goshia [24]

These consider many variables simultaneously and weight these according to a scheme that mirrors societal perceptions. It is a rating scale made up of several items, each of which is a separate question or statement that must be evaluated. Subjects will be able to explain their feelings about many aspects of their professions using a multi-item measure.

This will considerably increase the measure's precision and validity. As a result, multi-item measures are among the most essential and widely utilized tools in social research. Multiple-item scales are intended to sample a broader range of interpretations in order to capture the entire spectrum of a construct.

To learn more about multi-item, click here.

brainly.com/question/14407306

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1 year ago

According to most management researchers, the modern study of management originated in which century?

maks197457 [2]

Most management researchers believe that modern management studies originated in the <u>c. 18th century.</u>

<h3>Origins of modern management </h3>

Originated with the Industrial Revolution.
Originated as a means to make production more efficient.

The Industrial Revolution began in the 1700s or the 18th century and so we can conclude that modern management also started in the 18th century as well.

Find out more on<u> modern management</u> at brainly.com/question/4928239.

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2 years ago