Answer: Maximize joint welfare in respective or the right owner.
Explanation: A coase solution to a problem of externality insures that a socially efficient outcome is to maximize the joint welfare, irrespective of the right of ownership.
The Coase theorem states that when transaction cost are low, two parties will be able to bargain and reach an efficient outcome in the presence of an externality.
Answer:
30
Explanation:
The first step is to calculate the preferred stock
= 5,000×100
= 500,000
Therefore the book value per common share can be calculated as follows
= 2,000,000-500,000/50,000
= 1,500,000/50,000
= 30
Hence the book value per common share is 30
Answer:
a. 105
b. For machining $130
For assembly $50
Explanation:
a. The computation of the company's current plant-wide overhead rate is shown below:-
Current plant-wide overhead rate = Total manufacturing overhead ÷ Total direct labor hours
= $1,050,000 ÷ 10,000
= 105
b. The computation of refined departmental overhead rates is shown below:-
Departmental overhead cost = Overhead cost of department ÷ Cost driver of department
For machining
= $650,000 ÷ 5,000
= $130
For Assembly
= $400,000 ÷ 8,000
= $50
It depends on how you reacted. Did you throw something and yell it? Then yes. Did you just say it standing there? Then no.
