Answer:
The correct answer is $1,836,742.42.
Explanation:
According to the scenario, the given data are as follows:
EBIT = $373,000
Cost of equity = 13.2%
Tax rate = 35%
So, we can calculate the unlevered value of the firm by using following formula:
Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY
By putting the value, we get
Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%
= $373,000 × 0.65 ÷ 0.132
= $242,450 ÷ 0.132
= $1,836,742.42
It should be noted that when demand for a product is unit elastic and one would expect sales to equal: 5 units.
<h3>What is elastic demand?</h3>
An elastic demand can be regarded as the demand whereby change in quantity demanded due to a change in price is large.
An inelastic demand entails change in quantity demanded due to a change in price is small.
Learn more about elastic demand at;
brainly.com/question/24384825
Answer:
Option (d) : $24.8 and $15.7
Explanation:
As per the data given in the question,
Number of units produced = 10,000
Number of units sold = 6,000
Cost per unit = Amount/ 10,000
Absorption Variable
Direct material $5.2 $5.2
Direct Labor $8 $8
Variable manufacturing overhead $2.5 $2.5
Fixed manufacturing overhead $9.1 $9.1
Unit product cost $24.8 $15.7
Answer:
3. Supply of flour to increase.
Explanation:
The situation above is showing a<em> direct proportional relationship</em> between the "wheat," as a main ingredient of flour, and the flour itself.
If the price of wheat <em>decreases</em>, <u>suppliers will be interested in buying more of it in order to produce more quantities of flour at a </u><em><u>lower cost </u></em>because it will more likely lead to a<em><u> higher profit</u></em>. This will, therefore, increase the supply of flour in the market.
