The competitiveness of a good usually depends on two key factors: its price, and its quality. While poor quality goods are less competitive from a quality perspective but poor quality goods are usually cheaper to produce resulting to a lower final price. So overall, the lower the cost and the higher the quality the more competitive a good is.
Answer:
Normal goods have a positive relationship with income & purchasing power parity (PPP) with an increase in income ( I ) consumption of normal goods also increased respectively.
So, with the increase in students' income consumption of Pizza will be increased
As normal goods have a positive income elasticity of demand coefficient but it will be less than one.
Explanation:
Let’s discuss the normal goods, as a decrease in the price of normal goods its consumption will boost or increase. As when normal goods become cheaper, they will be consumed much as we know that people will consume them because of the logical reasoning of cheaper than its substitutes. Likewise, with an increase in income, its consumption will also increase but at a stage where it will become inelastic or constant.
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Answer:
The preferred stockholders $10,000
Common stockholders $4,000
Explanation:
The cumulative effect of the preferred stock is that the holders are entitled to arrears of dividends, in other words, they would receive this year last year's dividends in addition to current year's.
annual preferred stock dividends=dividend per share*number of preferred stock.
annual preferred stock dividends=$5*1000=$5000
dividends for 2 years=$5000*2=$10,000
common stock dividends=$14,000-$10,000=$4000
Answer:
1.the present value for the following assuming that the money can be invested at 11% is $1,209,346.73
2.if she can invest money at 11%, I will recommend that she accept the first option of taking a lump sum of $150000
Explanation:
a) using the compound interest formula
A= p[1+r%]^n
P= $150000 n=20 r=11%
A= 150000[ 1+11/100]^20
A=150000[1.11]^20
A=150000 ×8.062311536
A= $1,209,346.73
2. The first option will give her $1,209,346.73 and the second option will give her ($14,000 ×20)+$60,000= $340000
Therefore the first option is better to accept because she will make more money in the first option than in the second option.
Answer:
Annual depreciation= $32,500
Explanation:
Giving the following information:
Purchase price= $70,000
Salvage value= $5,000
Useful life= 4 years
<u>To calculate the annual depreciation under the double-declining-balance method, we need to use the following formula:</u>
<u></u>
Annual depreciation= 2*[(book value)/estimated life (years)]
<u>2022:</u>
Annual depreciation= 2*[(70,000 - 5,000) / 4]
Annual depreciation= $32,500
