Assume that an apartment rents for $650 per month and at that price the landlord rents 10,000 units are rented. When the price increases to $700 per month, the landlord supplies 13,000 units into the market. By what percentage does apartment supply increase? What is the price sensitivity?
Answers
The percentage increase is 30 percent and the price sensitivity is 14.1 which makes it elastic
What percentage does the apartment supply increase?To calculate the percentage increase in apartment supply, we need to first calculate the absolute increase in supply:
Absolute increase in supply = 13,000 - 10,000 = 3,000 units
Then we can calculate the percentage increase as follows:
Percentage increase in supply = (Absolute increase in supply / Initial supply) x 100%
= (3,000 / 10,000) x 100%
= 30%
So the apartment supply increased by 30% when the price increased from $650 to $700 per month.
To calculate the price sensitivity, we can use the midpoint formula:
Price elasticity of supply = (Percentage change in quantity supplied) / (Percentage change in price)
= [(13,000 - 10,000) / ((13,000 + 10,000) / 2)] / [(700 - 650) / ((700 + 650) / 2)]
= 3,000 / 11,500 / 0.0185
= 14.1
This means that the apartment supply is relatively elastic with respect to price, as the price elasticity of supply is greater than 1.
Learn more on percentage increase here;
https://brainly.com/question/11360390
#SPJ1
Related Questions
On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in Poland to deliver goods on January 31, 2021, for a price of 1,000,000 Polish zlotys (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,000,000 in four months (on January 31, 2021). U.S. dollar–Polish zloty exchange rates are as follows:
Date Spot Rate Forward Rate
(to January 31, 2021)
October 1, 2020 $ 0.25 $ 0.29
December 31, 2020 0.28 0.31
January 31, 2021 0.30 N/A
Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate, and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close its books and prepare financial statements on December 31. Discounting to present value can be ignored.
Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale.
Determine the net benefit, if any, realized by Mertag from entering into the forward contract.
Answers
Answer: JANUARYYYYYYYYYYYYYYYYYYY
Explanation:
Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,000,000 in four months SO IT WILL BE JANUARYYYY
MARK ME AS BRAINLEST PLEASEEEEE
5. Which one of the following is valid about project? C. Project is like operational tasks A. Project includes intangible services B. Project is a continuous activity D. All
Answers
Option C. Project is like operational tasks is valid about project
What is valid about projectThe valid statement about a project is:
C. Project is like operational tasks.
A project is different from operational tasks. Unlike operational tasks that are ongoing and repetitive in nature, a project is a temporary endeavor with a specific goal or objective. It has a defined beginning and end and is undertaken to create a unique product, service, or result. Projects are characterized by their temporary nature, unique requirements, and specific deliverables.
Read more on Projects here:https://brainly.com/question/25009327
#SPJ1
Answers
Question 2 of 20
Suppose that, as a project manager, one of your greatest strengths is
identifying who on your team can take on some of your own tasks, allowing
you to focus on other aspects of the project. Which of the following would
best describe you?
A. You are a strong collaborator
B. You are a good delegator
C. You are an excellent conflict resolver
D. You are an effective motivator
Answers
Answer:
B. You are a good delegator.
Explanation:
Delegation involves identifying the right people for the right tasks, and it allows the project manager to focus on other important aspects of the project. By being able to identify who on the team can take on certain tasks, the project manager is demonstrating good leadership skills and effective delegation. While collaboration, conflict resolution, and motivation are also important skills for a project manager to have, they are not directly related to the ability to delegate tasks to team members.
Read the article 8 Things You Should Consider Before Getting a Franchise
After reading the 8 items, select one and write a summary on it and note how it might apply to your business as a franchisor.
Answers
One of the items mentioned in the article "8 Things You Should Consider Before Getting a Franchise" is the importance of conducting thorough research before investing in a franchise.
What is the explanation for the above response?
One of the items mentioned in the article "8 Things You Should Consider Before Getting a Franchise" is the importance of conducting thorough research before investing in a franchise. It is crucial to research the franchisor's background, franchise system, and the industry in which the franchise operates to ensure that it aligns with your business goals and values.
As a franchisor, it is important to provide potential franchisees with comprehensive information about your franchise system, including financial information, training and support, marketing strategies, and operational procedures. This will help franchisees make an informed decision about investing in your franchise and ensure that they have a clear understanding of what they can expect.
It is also important to conduct ongoing research and analysis of the industry to stay up-to-date on market trends and consumer demands. This will enable you to adapt your franchise system to changing market conditions and provide your franchisees with the support they need to succeed.
By focusing on thorough research, both as a potential franchisee and as a franchisor, you can ensure that you make an informed decision about investing in a franchise and set yourself up for long-term success.
Learn more about franchisor at:
https://brainly.com/question/14982702
#SPJ1
Which of the outcomes in are most appealing to you? Are you more attracted to extrinsic outcomes or intrinsic outcomes?
Answers
Extrinsic outcomes are external rewards such as money, status, or recognition that come from achieving a goal. These outcomes are appealing to some individuals because they provide tangible benefits and can be easily measured by others.
On the other hand, intrinsic outcomes are internal rewards such as personal satisfaction, a sense of accomplishment, or personal growth that come from achieving a goal. These outcomes are appealing to some individuals because they provide a deeper sense of fulfillment and can be more meaningful in the long-term.
Ultimately, whether someone is more attracted to extrinsic or intrinsic outcomes depends on their personal values and goals. Some people may prioritize external rewards and seek to maximize their income or social status, while others may prioritize personal growth and seek to achieve goals that align with their passions and values.
It is important to strike a balance between both types of outcomes and to find a sense of purpose and satisfaction in the goals that we pursue.
For more such questions on goal visit:
https://brainly.com/question/25534066
#SPJ11
how would you purchase of inventory on credit affect the income statement?
Answers
Answer:
The purchase of credit increases both accounts payable and inventory, which are balance sheet accounts. It would, therefore, have no effect on the income statement.
Hope it helps
Please mark me as the brainliest
Thank you
A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
Answers
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
Learn more about promissory note here:https://brainly.com/question/27132271
#SPJ1
How much cash does the firm actually have? You are the CFO of ABC Corp. You are looking to hire a financial analyst, and you've given an assignment to two short-listed candidates. You've given the following information to the job applicants: The company reported net sales of $5, 625 million. Assume that there were no noncash sales. Operating costs (excluding depreciation and amortization) were 65% of the company's total revenues. Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of earnings before interest and taxes (EBIT) with a tax rate of 40%. You've asked the candidates to give you a number that best represents the cash flow situation of the company. Jake submits a report stating that the firm has $861 million in cash. Kurt submits a report stating that the firm has $1, 142 million in cash available Based on the information given to them, which applicant has provided a better estimate of the company's current cash flows? Kurt Jake
Answers
Answer:
Kurt
Explanation:
The computation of the cash available is shown below;
But before that first we have to determine the net income which is shown below:
Net sale $5,625
Less:
Operating cost -$3,656.25 ($5,625 × 65%)
Depreciation -$281.25 ($5,625 × 5%)
EBIT $1,687.5
Less
interest -$253.125 ($1,687.50 × 15%)
Profit before tax $1434.375
Less:
Tax -$573.75 ($1,434.375 × 40%)
Net income $860.625
Add: depreciation $281.25
Cash $1,141.875
Hence, the Kurt provide a better estimation for the current cash flows
Flat organizations are more horizontal and have
a team approach. Which of these is a benefit of
this structure?
A. chain of command
B. more nimble change
C. supervisors and middle management
Answers
Flat organizations are more horizontal and have a team approach. The benefit of this structure is more nimble change. Thus the correct option is B.
What is team?A team is referred to as a collection of people who come together to display a structured and formal environment and work in collaboration to achieve a common objective through individual role-playing.
Flat organizations are more team-oriented and horizontal. This structure has the advantage of enabling more rapid change. These appear to be quick to comprehend and pick up on new information, which improves the business's capacity for change and adaptation.
Therefore, option B is appropriate.
Learn more about Flat organisation, here:
https://brainly.com/question/20533923
#SPJ1
An investor wants to do capital budgeting for his new investment project. He has the following information: IRS will allow the investor to depreciate the investment using straight-line over 10 years. The marginal tax rate will be 20% over the next 5 years & it will be 15% from the 6th to the 10th year. The investor expects that the terminal value for the investment is $40,000 at the end of 6 years.(a 6-year project) What is the after-tax terminal value of this investment if the initial cost is $60,000?
$39,200
$36,800
$37,600
$38,400
None of the Answers
Answers
The investment's after-tax terminal value if the beginning cost is 37,600. The correct answer is option (c).
What is After-tax?The net amount of income that is left over after federal, regional, and income tax have been deducted from your take-home pay is known as your after-tax income. Pre-tax simply implies that premiums were deducted before to calculation and deduction of taxes.
The amount of discretionary income that a customer or business has available for spending is known as after-tax income, often known as income after taxes.
Initial Cost = $60,000
Written Down value after 6 years = 60,000*4/10 = $24,000
Selling price = $40,000
Gain on Sale = $16,000
Tax on Gain = 16000*15% = 2,400
After tax terminal value = Selling price - tax on gain
= 40,000-2400
= $37,600
Hence, the answer is $37,600
To know more about After-tax, visit:
https://brainly.com/question/28062298
#SPJ4
Evaluate whether Min-Chul is right to focus more on non-financial motivators than financial
motivators to attempt to motivate employees.
Answers
The most prevalent financial motivations occur at work and entail monetary rewards. These are your extrinsic motives, often known as carrots and sticks, which are used to encourage and reward employees for specific achievement behaviors.
Financial incentives drive workers and make them aware of what they stand to gain or lose depending on their performance when they are effectively conveyed. The employee can more easily provide for their families and materially better their lives outside of work thanks to this kind of inducement. Financial incentives can also raise short-term morale and productivity.
Naturally, not everyone is driven by money, and Gallup has discovered that there is no connection between engagement and pay scale. In addition, because of their monetary character, financial motivators frequently have declining returns. Less frequent non-financial motivators are frequently intangible and do not explicitly involve money. These can take various forms, such as acknowledgment, increased accountability and faith in a position, involvement in decisions, adaptable schedules, mentoring, feedback, and others.
Learn more about financial-motivators here:
https://brainly.com/question/9880948
#SPJ1
Which of the following is the best example of integrity?
OA
Roger's boss takes 2-hour lunches. Roger tells no one.
OB.
Sandra's mistake on a report could be disastrous. She immediately reports the error even
O C.
Don believes it is okay to check his social media accounts at work since no one says it's wr
OD.
Andrea borrows $20 from the company's petty cash fund, which she intends to pay back.
Answers
Integrity is the discipline of being truthful and demonstrating a steadfast and unwavering adherence to high moral and ethical standards. Hence option B is correct .
What is Integrity ?Integrity is defined in ethics as being honest, true, or accurate in one's activities. Being judged by the standards of integrity entails viewing internal consistency as a virtue and recommends that parties holding internally apparent conflicts of values should explain the gap or change their ideas.
This is how integrity can be opposed to hypocrisy. The adjective integer, which means whole or whole in Latin, is where the word integrity first appeared. In this application, integrity refers to the internal sense of "wholeness" derived from traits like honesty and moral rectitude.
An individual is considered to have the virtue of honesty in ethics.if the person acts in accordance with a set of moral standards that are internally consistent. These rules must all consistently follow valid axioms or postulates of logic. When a person's behaviours, beliefs, techniques, measures, and ideals all stem from a single set of fundamental principles, that person is said to have ethical integrity.
Learn more about Integrity her e
https://brainly.com/question/28396227
#SPJ2
The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results:
Observation
1
2
3
4
5
6
52
Time (seconds)
27
30
54
69.8
98
What is the standard time for this task if the employee performance rating is 5.9% percent, and an allowance of 10.8 percent of job time is used?
seconds
Answers
Given: 1 2 3 4 6 Observation Time 5 93 99 87 90 81 90. Observed Time = Average of 6 samples -> ( 99+87 + 90 + 81 + 93 + 90 )/6 = 90. This observed time is at 50% faster rate. Hence Normal Time would be 90*3/2 = 135 seconds.
Standard Time : The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor. Hence Standard Time = 135*1.1 = 148.5 ~ 150 seconds.
The synchronisation of clocks inside an area of geography to a single time standard, instead of a local mean time standard, is known as standard time. In general, standard time agrees with local mean time at a few meridian that passes through the area, usually near the centre. Standard time was established in the nineteenth century to help with weather forecasting as well as train travel. Geographical regions became time zones when they were applied globally in the twentieth century.
Learn more about time, here:
https://brainly.com/question/31732120
#SPJ1
On Apr. 1, you, the business owner donated the following assets to Eat Your Life Away: cash,
$20,000; accounts receivable, $14,700; food supplies, $3,300; and Kitchen Utensils, $12,000.
There were no liabilities received. On the same day, you paid three months’ rent on a lease rental
contract, $6,000. The following day, you paid the premiums on property and casualty insurance
policies, $4,200.
On April 4, you received $9,400 cash from BTL who had contracted you to supply food for its
50 employees for the month of April. As a result of this BTL contract, you purchased on the
following day additional restaurant office equipment on account from Angelus Press for $8,000.
On April 6, you received $11,700 cash from customers who were owing you from Stann Creek
on account. Because of the competition in the City amongst restaurant owners, on April 10, you
paid Amandala Newspapers $350 cash for a newspaper advertisement to announce your presence
in the city. On April 12, having received the money from your debtors in Stann Creek, you
decided to pay Angelus Press $6,400 for part of the debt incurred on April 5. On the same day,
you provided food worth $21,900 to a major political party having a convention on account for
the period April 1–12. Because of the bi-monthly payment agreement with your cook, you paid
her salary for two weeks of $1,650.
On April 17, you received cash from cash customers for foods sold during the period April 1–16,
$6,600 and you paid cash for food supplies, $725 the following day. Having established that the
political party is trustworthy, you provided additional foods on account for another rally held at
the Bliss Center for the period April 13–20, $16,800.
On April 24, you received cash from cash customers for food sold for the period April 17–24,
$4,450. On April 26, you received cash from the political party who bought food on account,
$26,500. Being another two-weeks period, you paid your cook’s two weeks’ salary of $1,650 on
April 27. You paid your telephone bill of $540 for the month of April on April 29 and BEL bill
of $760 the following day.
On the last day of the month, you received cash of $5,160 from cash customers for food sold for
the period April 25–30, supplied food on account to BTL & Digicel staff on account for the
remainder of April, $2,590. Because you had to pay for personal expenses, you withdrew
$18,000 for personal use.
Instructions
The Belize Income Tax Department wishes to conduct an audit of small businesses in Belize
and “Eat Your Life Away” was selected as one of the businesses the Tax Department
wishes to audit. Hence, it wants you to provide the following:
1. All the journal entries that you made during the month using a two-column journal and would
like you to use the following charts of accounts:
Cash Capital Accounts Receivable
Drawing Food Supplies Sales Revenue
Prepaid Rent Salary Expense Prepaid Insurance
Food Supplies Expense Kitchen Utensils Rent Expense
Accumulated Depreciation-Kitchen Utensils Depreciation Expense
Accounts Payable Insurance Expense Salaries Payable
Miscellaneous Expense Unearned Revenues
2. Post the journal to a ledger accounts.
3. Prepare an unadjusted trial balance.
Answers
Eat Your Life Away will prepare the following journal entries, post them to the ledger, and extract an unadjusted trial balance as follows:
1. Journal Entries:
Apr. 1 Debit Cash $20,000
Debit Accounts receivable $14,700
Debit Food supplies $3,300
Debit Kitchen Utensils $12,000
Credit Capital $50,000
Apr. 2 Debit Prepaid Rent $6,000
Credit Cash $6,000
Apr. 3 Debit Prepaid Insurance $4,200
Credit Cash $4,200
Apr. 4 Debit Cash $9,400
Credit Unearned Revenue $9,400
Apr. 5 Debit Kitchen Utensils $8,000
Credit Accounts Payable $8,000
Apr. 6 Debit Cash $11,700
Credit Accounts receivable $11,700
Apr. 10 Debit Advertising Expense $350
Credit Cash $350
Apr. 12 Debit Accounts Payable $6,400
Credit Cash $6,400
Apr. 12 Debit Accounts Receivable $21,900
Credit Sales Revenue $21,900
Apr. 12 Debit Salary Expense $1,650
Credit Cash $1,650
Apr. 17 Debit Cash $6,600
Credit Sales Revenue $6,600
Apr. 18 Debit Food Supplies $725
Credit Cash $725
Apr. 20 Debit Accounts Receivable $16,800
Credit Sales Revenue $16,800
Apr. 24 Debit Cash $4,450
Credit Sales Revenue $4,450
Apr. 26 Debit Cash $26,500
Credit Accounts Receivable $26,500
Apr. 27 Debit Salary Expense $1,650
Credit Cash $1,650
Apr. 28 Debit Miscellaneous Expense $540
Credit Cash $540
Apr. 29 Debit Miscellaneous Expense $760
Credit Cash $760
Apr. 30 Debit Cash $5,160
Credit Sales Revenue $5,160
Apr. 30 Debit Unearned Revenue $2,590
Credit Sales Revenue $2,590
Apr. 30 Debit Drawings $18,000
Credit Cash $18,000
2. Ledgers Accounts:
Cash
Date Account Titles Debit Credit
Apr. 1 Capital $20,000
Apr. 2 Prepaid Rent $6,000
Apr. 3 Prepaid Insurance $4,200
Apr. 4 Unearned Revenue $9,400
Apr. 6 Accounts receivable $11,700
Apr. 10 Advertising Expense $350
Apr. 12 Accounts Payable $6,400
Apr. 12 Salary Expense $1,650
Apr. 17 Sales Revenue $6,600
Apr. 18 Food Supplies $725
Apr. 24 Sales Revenue $4,450
Apr. 26 Accounts Receiv. $26,500
Apr. 27 Salary Expense $1,650
Apr. 28 Miscellaneous Expense $540
Apr. 29 Miscellaneous Expense $760
Apr. 30 Sales Revenue $5,160
Apr. 30 Drawings $18,000
Apr. 30 Balance $43,535
Totals $83,810 $83,810
Capital
Date Account Titles Debit Credit
Apr. 1 Cash $20,000
Apr. 1 Accounts receivable $14,700
Apr. 1 Food supplies $3,300
Apr. 1 Kitchen Utensils $12,000
Apr. 30 Balance $50,000
Totals $50,000 $50,000
Accounts Payable
Date Account Titles Debit Credit
Apr. 5 Kitchen Utensils $8,000
Apr. 12 Cash $6,400
Apr. 30 Balance $1,600
Totals $8,000 $8,000
Accounts Receivable
Date Account Titles Debit Credit
Apr. 1 Capital $14,700
Apr. 6 Cash $11,700
Apr. 12 Sales Revenue $21,900
Apr. 20 Sales Revenue $16,800
Apr. 26 Cash $26,500
Apr. 30 Balance $15,200
Totals $53,400 $53,400
Drawing
Date Account Titles Debit Credit
Apr. 30 Cash $18,000
Food Supplies
Date Account Titles Debit Credit
Apr. 1 Capital $3,300
Apr. 18 Cash $725
Apr. 30 Balance $4,025
Totals $4,025 $4,025
Sales Revenue
Date Account Titles Debit Credit
Apr. 12 Accounts Receivable $21,900
Apr. 17 Cash $6,600
Apr. 20 Accounts Receivable $16,800
Apr. 24 Cash $4,450
Apr. 30 Cash $5,160
Apr. 30 Unearned Revenue $2,590
Apr. 30 Balance $57,500
Totals $57,500 $57,500
Prepaid Rent
Date Account Titles Debit Credit
Apr. 2 Cash $6,000
Salary Expense
Date Account Titles Debit Credit
Apr. 12 Cash $1,650
Apr. 27 Cash $1,650
Apr. 30 Balance $3,300
Totals $3,300 $3,300
Prepaid Insurance
Date Account Titles Debit Credit
Apr. 3 Cash $4,200
Kitchen Utensils
Date Account Titles Debit Credit
Apr. 1 Capital $12,000
Apr. 5 Accounts Payable $8,000
Apr. 30 Balance $20,000
Totals $20,000 $20,000
Miscellaneous Expense
Date Account Titles Debit Credit
Apr. 10 Cash $350
Apr. 28 Cash $540
Apr. 29 Cash $760
Apr. 30 Balance $1,650
Totals $1,650 $1,650
Unearned Revenues
Date Account Titles Debit Credit
Apr. 4 Cash $9,400
Apr. 30 Sales Revenue $2,590
Apr. 30 Balance $6,810
Totals $9,400 $9,400
3. Eat Your Life Away
Unadjusted Trial Balance
As of April 30,
Date Account Titles Debit Credit
Cash $43,535
Capital $50,000
Accounts Payable 1,600
Accounts Receivable 15,200
Drawings 18,000
Food Supplies 4,025
Sales Revenue $57,500
Prepaid Rent 6,000
Salary Expense 3,300
Prepaid Insurance 4,200
Kitchen Utensils 20,000
Miscellaneous Expense 1,650
Unearned Revenue $6,810
Totals $115,910 $115,910
See the attachment for Data Analysis of Transactions.
Learn more: https://brainly.com/question/18558772
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31.
1. Use the following information about the company's adjustments to complete a 10-column work sheet.
a. Unrecorded depreciation on the trucks at the end of the year is $5,487.
b. Total amount of accrued interest expense at year-end is $8,000.
c. Cost of unused supplies still available at year-end is $600.
2a. Prepare the year-end closing entries for Dylan Delivery Company as of December 31.
2b. Determine the capital amount to be reported on its year-end balance sheet. Note: The S. Dylan, Capital account balance was
$241,318 on December 31 of the prior year.
Answers
Applying the knowledge of trial balance preparation for Dylan Delivery Company;
1a - c. See the attached 10-column worksheet labelled figure 1, for year end December 31st.
2a. See the closing entries as prepared on the attached worksheet labelled figure 2.
b. The capital account prepared to determine the adjusted capital of Dylan Delivery Company that should be reported at year end Dec. 31st is shown in figure 3.
The question deals with unadjusted trial balance of Dylan Delivery company.
A trial balance is a list of all balances remaining in the accounts of a company extracted at a particular date to ascertain the arithmetic accuracy of the company's books of accounts.
The trial balance must agree, (that is, a debit must be equal to credit). If it fails to agree, it means the trial balance does not agree.
Such trial balance is called unadjusted trial balance. Hence, the preparation of the following for Dylan Delivery Company:
the 10-column worksheetthe adjustment of the trial balance/preparation of the closing entriesdetermining the capital that should be reported at the year end, Dec. 31st.Therefore:
1a - c. See the attached 10-column worksheet labelled figure 1, for year end December 31st.
2a. See the closing entries as prepared on the attached worksheet labelled figure 2.
b. The capital account prepared to determine the adjusted capital of Dylan Delivery Company that should be reported at year end Dec. 31st is shown in figure 3.
Learn more here:
https://brainly.com/question/14604253
QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)
Answers
Answer:
rat
Explanation:
The petitie sportswear buyer places the following order: 36 pants costing $10.75 each48 pants costing $15.50 each24 pants costing $17.50 eachShipping charges were 6%of the billed costs. To find the dollar amount of shipping charges, find the total amount of billed costs. Multiply the number of pants to the cost of each pants and find the sum toal:36 pants $10.75 = $38748 pants $10.75 = $74424 pants $10.75 = $420Then find the sum of each cost to find the gross sales. So the sum of 387, 744 and 420 is 1,551. So the total amount of billed costs is $1,551,000.
Answers
Answer:
The dollar amount of the shipping charges is:
$93.06
Explanation:
a) Data and Calculations:
36 pants at $10.75 = $387
48 pants at $15.50 = $744
24 pants at $17.50 = $420
108 pants = $1,551
Shipping charges 93.06 (6% of $1,551)
Total billed costs = $1,644.06
The shipping charges of 6% are applied on the total product costs of $1,551 to obtain $93.06. The cost of each purchase of a line of pants is computed by multiplying the line's quantity with its per unit cost. Then the different costs are added together before applying the 6% shipping charges.
An economist estimated that the cost function of a single-product firm is
C(Q) = 100 + 20Q + 1502 + 1003
Based on this information, determine:
a. The fixed cost of producing 10 units of output.
b. The variable cost of producing 10 units of output.
c. The total cost of producing 10 units of output.
d. The average fixed cost of producing 10 units of output.
e. The average variable cost of producing 10 units of output.
f. The average total cost of producing 10 units of output.
g. The marginal cost when Q = 10.
Answers
Where C(Q) = 100 + 20Q + 15Q² + 10Q³ is the cost function,
(a) Fixed cost (FC) = $100 (which is fixed irrespective of output level)
(b) Variable cost (VC) = 20Q + 15Q² + 10Q³
When Q = 10, VC = (20 x 10) + (15 x 10 x 10) + (10 x 10³) = 200 + 1,500 + 10,000 = $11,700
(c) Total cost (TC) = FC + VC = $(100 + 11,700) = $11,800
(d) Average fixed cost (AFC) = FC/Q = $100 / 10 = $10
(e) Average variable cost (AVC) = VC/Q = $11,700 / 10 = $1,170
(f) Average total cost (ATC) = TC/Q = $11,800 / 10 = $1,180
(g) Marginal cost (MC) = dC(Q)/dQ = 20 + 30Q + 30Q²
When Q = 10, MC = 20 + (30 x 10) + (30 x 10 x 10) = 20 + 300 + 3,000 = $3,320
What is a cost Function?The cost function calculates the cheapest way to produce a particular amount of output for some set factor costs. The cost function describes a firm's economic options.
The functional connection between cost and output is referred to as the cost function. It investigates the cost behavior at various levels of production when technology is considered to be constant. It may be stated as follows: C= f(Q) (where C is the cost of production and Q is the quantity of output).
Learn more about cost function:
https://brainly.com/question/12909885
#SPJ1
Full Question:
An economist estimated that the cost function of a single-product firm is:
C(Q) = 100 + 20Q + 15Q² + 10Q³.
Based on this information, determine the following:
a. The fixed cost of producing 10 units of output.
b. The variable cost of producing 10 units of output.
c. The total cost of producing 10 units of output.
d. The average fixed cost of producing 10 units of output.
e. The average variable cost of producing 10 units of output.
f. The average total cost of producing 10 units of output.
g. The marginal cost when Q = 10.
A theory is anything that people want to achieve
Answers
Answer:
FalseExplanation:
sorry if that is not what you were looking for.
Why do companies wish to have financial slack?
Answers
This extra money is available to help a company survive difficult times, such as decreases in sales, revenues or profits
You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answers
Answer:
C) price elastic.
Explanation:
Which of the following statements is not correct?
multiple choice
When a periodic system is in use, the Purchases account must be credited for its account balance to close this account to the Income Summary account.
When a periodic inventory system is in use, the Merchandise Inventory account is both debited and credited in the closing entry process.
When a periodic system is in use, the Purchases Returns and Allowances, the Purchases Discounts, and the Transportation-In accounts must be debited to close their account balances to the Income Summary account.
When a periodic system is in use, each Purchases, Purchases Return and Allowance, Purchases Discount, and Transportation-In transaction is recorded in a separate temporary account.
Answers
Answer:
When a periodic system is in use, the Purchases Returns and Allowances, the Purchases Discounts, and the Transportation-In accounts must be debited to close their account balances to the Income Summary account.
Explanation:
In the case of the periodic system, the following statements are true:
a. While using this method, the purchase would be credited to its balance also the account would be closed by using the income summary account
b. The inventory would be debited and credited while processing the closing entry
c. Also the purchase, purchase return, etc would be recognized as a distinct temporary account
Is .gov a good website?
Answers
Answer: most websites with .gov in it are reliable.
When the economy experiences an expansion, it is most likely the case that
Answers
Answer:
there is a bigger money pool and became popular
Answer:
they will experience relatively rapid growth, interest rates will be low, production increase, and inflationary pressure builds
According to entrepreneur, Keith J. Davis, Jr., young people must wait until they are older to become entrepreneurs.
True or False
Answers
Answer:
False
Explanation:
False
Advantages to free-trade agreements (FTAs) are that they increase trade barriers (both tariff and non-tariff barriers), open up market to exporters, and increase jobs domestically. True orFalse
Answers
Answer:
False
Explanation:
Free trade agreements are economic cooperation deals between two or more countries. In the agreement, the countries agree to put in measures that will promote trade between them. Free trade agreements are mostly about tariffs and duties that countries impose on each other imports and exports.
The purpose of the free trade agreement is for participating countries to review the tariffs to increase trade among participating countries. In most cases, a free trade agreement resorts to reduced tariffs and duties.
Abe's Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company's menu features a broad selection of high-quality steaks and other premium offerings. Assume the information below is from a recent annual report:
a. Common stock, $0.01 par value; 100,160,000 shares authorized; 23,383,356 issued and outstanding at the end of the current year, 23,215,356 issued and outstanding at the end of last year.
b. Additional paid-in capital: $198,389,000 at the end of the current year and $169,431,000 at the end of last year.
c. Retained earnings / (accumulated deficit): ($80,897,000) at the end of last year.
d. In the current year, net income was $54,083,000 and a cash dividend of $7,138,000 was paid.
Required: Prepare the stockholders’ equity section of the balance sheet to reflect the above information for the current year and last year.
ABE'S STEAKHOUSE
Balance Sheet (Partial) Current Year Last Year
Shareholders' equity: ??? ???
Additional paid-in capital ??? ???
Accumulated deficit ??? ???
Total shareholders' equity ??? ???
Answers
Here is the stockholders’ equity section of the balance sheet for Abe's Steakhouse:
The stockholders’ equityABE'S STEAKHOUSE
Balance Sheet (Partial)
Current Year Last Year
Shareholders' equity: Shareholders' equity:
Common stock ($0.01 par value; 100,160,000 shares authorized; 23,383,356 issued and outstanding) Common stock ($0.01 par value; 100,160,000 shares authorized; 23,215,356 issued and outstanding)
* $233,833 | $232,154
Additional paid-in capital | Additional paid-in capital
* $198,389 | $169,431
Retained earnings | Accumulated deficit
* $46,945 | $(80,897)
Total shareholders' equity | Total shareholders' equity
* $448,267 | $(37,744)
I have made the following adjustments to the information provided:
I have multiplied the number of shares outstanding by the par value of $0.01 to calculate the amount of common stock.
I have added the additional paid-in capital to the common stock to calculate the total contributed capital.
I have added the retained earnings (or accumulated deficit) to the total contributed capital to calculate the total shareholders' equity.
Read more about stockholders’ equity here:
https://brainly.com/question/30397975
#SPJ1
Angela has an annual contract with Stenbach Service Centre to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Angela spends, on average, 20 hours per week working at the company’s premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Angela does not have any other clients.
Angela uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Chris Moore, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Chris approves Angela’s monthly invoices and submits them to Accounts Payable.
Does Angela have a contract of service or a contract for service with Stenbach Service Centre As the company’s Payroll Supervisor, explain to Chris the process and factors you used to make your decision.
Answers
Answer:
Angela and Stenbach Service Centre
Contract for Service and Contract of Service:
1. Angela has a contract for service.
2. Factors used to decide whether a contract is for service or of service:
a) Employment terms are slightly different from business contract terms.
b) Employees are paid Wages and Salaries, while contractors are paid fees.
c) Employees do not submit monthly invoices for payment, but contractors do.
d) Angela fills tax forms for herself and remits the taxes, so she is self-accounting with respect to her income taxes, unless withholding taxes like Sales taxes. An employee's income tax is deducted from her salary before payment and the company remits the taxes to the IRS.
Explanation:
The agreement between Angela, a self-employed individual, and Stenbach Service Centre is a contract for service. A contract of service is an employment contract between Stenbach Service Centre, the employer, and the Payables Supervisor, an employee, for example. Essentially, Angela can be described as an outsourcer for services vendor or service provider to Stenbach Service Centre, an outsourcer of service company. Angela is engaged for a fee to carry out property maintenance services, including lawn care, snow removal, and parking lot maintenance. She is an independent contractor with Stenbach. She does not need to work on any day and she can subcontract her work by hiring others to help her discharge the service. An employee, like Chris, cannot hire another person to discharge his responsibilities and must work on designed days.
Another important difference is that Angela submits monthly invoices for actual work done. An employee does not have to submit an invoice in order to be paid for work done. Angela's invoices will not be of the same amount from one month to the other, unlike Chris' whose salary pay sheet may be static in amount from month to month.
Explain Maitland’s argument for morality of sweatshops.
a. You need to understand the Classic Liberal Standard in contrast to other standards.
b. Consistently Libertarian, his argument is both Kantian and Utilitarian. You need to know why.
2. Why does Maitland thing that requiring a living wage in sweatshops is itself immoral?
a. This is primarily an economic argument that leads to a moral judgment. You need to explain why.
3. According to Arnold’s and Bowie’s use of the Respect Principle, what do we owe other people?
a. Focus on what they say based on Thomas Hill’s work.
b. Contrast what they say with the way a Libertarian would argue about what we own others.
4. Explain Arnold’s and Bowie’s use of the Kantian Respect Principle in their discussion of a living wage.
a. It will be important to understand what is owed to other people.
Answers
Maitland's argument is utilitarian and Kantian in that he upholds the autonomy of the individual and contends that the overall advantages of sweatshops such as increased economic growth and the eradication of poverty outweigh any potential drawbacks. The shops intentions are misguided and they would actually do more harm than good.
1. The Classic Liberal Standard, on which Maitland's argument is predicated, asserts that people have the right to pursue their own self interest without interference or coercion as long as they do not harm others in the process.
Maitland contends that employment opportunities in sweatshops are appealing to workers and frequently superior to those offered by other sources.
2.Maitland contends that requiring a living wage in sweatshops is morally wrong in and of itself because it would stunt economic development and raise unemployment in developing nations. He contends that wages in sweatshops are frequently higher than the going rate in the neighborhood and that employees have the option of working there or not.
According to him, mandating a living wage would raise the cost of labor and deter businesses from using sweatshops, which would limit the number of jobs available to workers. The main thrust of Maitland's argument is economic, but he thinks it ends up being moral because efforts to require a living wage would hurt the very people they are meant to help.
3. Arnold and Bowie emphasize the significance of treating employees as ends in themselves rather than as means to an end in their discussion of a living wage by applying the Kantian Respect Principle. They contend that employers have a moral duty to respect employees inherent dignity by paying them a living wage.
This rule is based on Kant's contention that people should always be regarded as ends in and of themselves, as opposed to merely being used as means to further our own goals.
Learn more about Maitland at:
brainly.com/question/29730553
#SPJ1