Firms in a sweezy oligopoly resist changing their prices so long as marginal cost remains within a certain range due to the effect of price changes on the behavior of rival firms.
What happens if an oligopoly has more companies in it?As the number of firms increases in an oligopoly market, the product price declines and becomes closer to the marginal cost. As a result, in an oligopoly market, the size of the pricing effect reduces as the number of firms increases.
What transpires in an oligopoly in terms of prices?An oligopoly can prevent new competitors from entering the market, stifle innovation, and raise prices, all of which are detrimental to consumers. Instead than collecting prices from the market, companies in an oligopoly determine pricing, whether collectively—in a cartel—or under the direction of one enterprise.
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which of the following is true concerning incentive pay? question 10 options: the award is earned only when the predetermined work objective is totally completed. incentive levels are generally subjective in nature. incentive pay awards are granted as one-time payments. it motivates employees to be more productive, but does little to control payroll costs.
The option is d, it motivates employees to be more productive, but does little to control payroll costs. Incentive compensation is a form of compensation used in the workplace to reward employees for meeting predetermined goals or objectives.
It is a type of performance-based compensation designed to motivate employees to work harder and be more productive. In general, incentive pay is provided in the form of lump sum payments. It is usually only obtained when a predetermined work goal or objective is completely completed. However, it does not necessarily help control labor costs, as the amount of the incentive payment can vary widely depending on the employee's performance level.
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which of the following is not true? a) an american put option is always worth less than the present value of the strike price b) a european put option is always worth less than the present value of the strike price c) a european call option is always worth less than the stock price d) an american call option is always worth less than the stock price
Option A is not True. An American put option is always worth less than the present value of the strike price
Present value (PV) is the ongoing worth of a future amount of cash or stream of income given a predefined pace of return. Future incomes are limited at the rebate rate, and the higher the markdown rate, the lower the current worth representing things to come incomes. Deciding the fitting markdown rate is the way to appropriately esteem future incomes, whether they be profit or obligation commitments. Present worth is the idea that expresses a measure of cash today is worth more than that equivalent sum from now on. All in all, cash got in what's to come isn't worth however much an equivalent sum got today.
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3. crown company uses process costing and the weighted average method. the first department is assembly and it has (1) materials and (2) conversion. the following information is available for january 2023. beginning work in process had 20,000 units. they were 100% complete in materials and 75% complete in conversion. ending work in process had 40,000 units. they were 100% complete in materials and 25% complete in conversion. 180,000 units were started into production in january. 160,000 units were completed and transferred out. beginning work in process had $25,200 costs in materials and $24,800 costs in conversion. costs added during january were $334,800 in materials and $238,700 in conversion. required: a.) compute equivalent units of production for materials and for conversion for january. b.) compute the cost per equivalent for materials and for conversion for january. c.) compute the cost of ending work in process inventory for materials, for conversion, and in total for january. d.) compute the cost of units transferred out for materials, for conversion, and in total for january. e.) prepare a cost reconciliation for the assembly department for january.
Crown Company use the weighted average approach and process costing. Assemblies must determine equivalent units of output for materials and conversion for January in their first department.
Production processes that are standard use a process costing system. Every time a process cost sheet for a department is created, it is quite likely that the department has some incomplete units either in its beginning work in process, ending work in process, or both. In such a scenario, it's critical to establish a cost flow assumption, or an understanding of the sequence in which costs are distributed to the following department. Both first-in, first-out (FIFO) and weighted average are cost-flow hypotheses.
The expenses are averaged out and equally applied to both units transferred out and units in closing work in process in the weighted average method of process costing. Weighted average approach differs from FIFO method, which posits that costs introduced first into a department are transferred out first.
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in a large open economy, how would the following event affect the equilibrium interest rate? the government proposes a new tax on saving, based on the value of people's investments as of december 31 each year.
The proposal of a new tax on saving based on the value of people's investments as of December 31 each year would likely have a significant effect on the equilibrium interest rate in a large open economy.
In general, taxes on savings tend to discourage households from saving and investing, as they reduce the after-tax return on investment. As a result, the demand for loanable funds would likely decrease, leading to a reduction in the equilibrium interest rate.
However, the effect on the interest rate would also depend on the specific circumstances of the economy. If the government uses the revenue generated from the tax to fund productive investments or reduce other distortions in the tax code, it could increase the supply of loanable funds and partially offset the decrease in demand, leading to a smaller reduction in the interest rate.
Moreover, the impact on the interest rate would also depend on the degree of openness of the economy. In a large open economy, capital is highly mobile, and savers may seek higher returns abroad, leading to a larger decrease in the demand for loanable funds and a more significant reduction in the interest rate.
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Are markets always in equilibrium? A. No, they never 'settle down' into a stable price and quantity. B. No, but if there is no outside interference, they tend to move toward equilibrium. C. Yes, because very few things tend to alter supply and demand. D. Yes, they are always at the equilibrium point, or very close to it.
The correct answer is B " No, but if there is no outside interference, they tend to move toward equilibrium."
When the quantity supplied and the quantity demanded are equal, a market is in equilibrium. The intersection of the upwardly rising supply and downwardly sloping demand curves is known as equilibrium. The price that brings the market to equilibrium is known as the equilibrium price.
The quantity provided will be greater than the quantity required if the price being charged in the market is higher than the equilibrium price. We refer to this circumstance as a surplus. The amount provided will be less than the quantity required if the price being charged in the market is less than the equilibrium price. We refer to this as a scarcity.
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a farmer finds that when he produces more pumpkins, he also has more pumpkins he can sell as decorations. to the farmer, pumpkins and decorative pumpkins are: unrelated goods. complements in production. inferior goods. substitutes in production.
The farmer sees decorative pumpkins and pumpkins as unrelated products. production complements subpar products Buckets and baskets are alternatives used in production.
In production, who works?Jobs at a production facility or warehouse could include those for line workers, planning managers, scientists, product testers, packagers, or shipping agents. Production jobs can be found in a range of managerial, technical, and physical labor roles in the entertainment business.
Actors or producers, who earns more money?When a movie is successful—and by successful, we mean Jurassic World-kind of successful—producers do receive higher pay than actors. The actors typically earn more, though, if the film is more of a flop. This is so that they can be paid within a certain range when they are cast in the movie.
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What is an example of accompanies in a sentence?
She'll go to the supermarket with me. The class's field excursion included ten adults. This movie requires an adult to be in the audience with anyone under the age of 17.
How would you employ companions?She'll go to the supermarket with me. The class's field excursion included ten adults. This movie requires an adult to be in the audience with anyone under the age of 17. The fish was grilled and served with a lovely sauce.
An example of "accompanies" used in a sentence is: "A fever often accompanies the flu." In this sentence, "accompanies" means to occur or appear together with something else, in this case a fever appearing together with the flu.
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When a binding price ceiling is imposed on a market to benefit buyers?a. no buyers actually benefit
b. some buyers benefit but no buyers are harmed
c. some buyers benefit and some buyers are harmed
d. all buyers benefit
c. Some buyers benefit and some buyers are harmed. When a binding price ceiling is imposed on a market, it sets a legal maximum price for a good or service.
Some customers may benefit from this since it enables them to pay less for the product or service than they otherwise would have had to. The implementation of a price cap, however, may also be harmful. Supply limitations could result from suppliers' reluctance to manufacture or offer the commodity or service at the reduced cost. As a result, even at the decreased price, some customers might not be able to acquire the product or service. In conclusion, while a legally enforceable price cap may benefit some consumers, it may also hurt others and have unforeseen effects like shortages and decreased quality.
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A cost that changes in proportion to changes in volume of activity is a(n):a) Differential cost.b) Fixed cost.c) Incremental cost.d) Variable cost.e) Product cost.
A cost that changes in proportion to changes in volume of activity is Variable cost.
What is a Variable cost?
A firm needs to be aware of its commitments in order to prepare for the future and operations, especially in terms of the revenues to be expected. The ability of a corporation to perform Cost - Volume - Price, or CVP analysis, depends on how well costs can be predicted.
Variable costs are those that are directly related to production and change according to the job a business performs. For instance, the cost of fuel is a variable expense for a service company that rises when it must travel to clients and falls when there are few requests.
The amount of output produced affects the variable costs. Raw materials, commissions, and labor are examples of variable expenses.
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A homeowner is financing the cost of new windows. Two lenders have approved the homeowner for a $12,000 loan. The terms of each loan are: offer 1: 4. 5% annual simple interest, with a total account balance of $14,430 after a 54-month term offer 2: 3. 75% annual interest compounded monthly for a 66-month term assuming no payments are made, what is the difference in the account balances at the end of the loan terms. Round your answer to the nearest penny?
The difference in the account balances at the end of the loan terms is $1,975.22
For offer 1,
The simple interest is calculated as:
I = P × r × t
where P is the principal amount, r is the annual interest rate, and t is the time in years.
In this case, P = $12,000, r = 0.045, and t = 54/12 = 4.5 (since the loan term is given in months). So, the interest paid is:
I = $12,000 × 0.045 × 4.5 = $2,430
The total account balance is the sum of the principal and the interest paid:
$14,430 = $12,000 + $2,430
For offer 2,
The interest is compounded monthly, so the formula for the future value of an annuity can be used:
FV = P × ((1 + r/n)^(n×t))
where FV is the future value, P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the time in years.
In this case, P = $12,000, r = 0.0375, n = 12, and t = 66/12.
So, the future value is:
FV = $12,000 × ((1 + 0.0375/12)^(12×66/12)) = $16,405.21
The difference in account balances at the end of the loan terms is:
$16,405.21 - $14,430 = $1,975.21
Rounding to the nearest penny, the difference is $1,975.22. Therefore, the difference in the account balances at the end of the loan terms is $1,975.22.
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When Apple Inc. hires a student intern during the summerhires a student intern during the summer, the flows are a ______ from firms to households and a ______ from households to firms.
A.
money flow; real flow
B.
real flow; real flow
C.
real flow; money flow
D.
money flow; money flow
When Apple Inc. hires a student intern during the summer, the flows are a money flow from firms to households and a real flow from households to firms. (Option A)
The circular flow model demonstrates the interaction between two economic decision-makers groups, households and businesses, and two economic market types, the market for resources and the market for goods and services. Households receive wages for their labor from the firms while firms receive resources from the household for their operation.
Hence, the money flow from firms to households refers to the wages paid to the student intern for their work. The real flow from households to firms refers to the labor provided by the student intern to the firm. These flows are part of the circular flow model of the economy, which shows how money and goods/services move between households and firms.
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item6 10 points ebookreferencescheck my work check my work button is now disabled item 6 which of the following is true? multiple choice the existence of generally accepted accounting principles (gaap) eliminates the need for professional judgment except in very unusual circumstances. federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well. attaining a passing score on the part of the uniform cpa examination that covers professional ethics is evidence of integrity and commitment to ethical conduct. a professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.
Option B is TRUE. because federal securities laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, require that financial statements and other disclosures made by public companies be accurate and not misleading.
These laws hold not only the independent auditors, but also the management of the company, responsible for the accuracy and completeness of financial statements. Under the federal securities laws, it is unlawful to make any untrue statement of a material fact in connection with the sale or purchase of securities. This includes financial statements, which are required to be accurate and not misleading. The responsibility for the accuracy of financial statements rests with the company's management, as well as the independent auditors who audit the financial statements. Therefore, if management is found to have knowingly issued misleading financial statements, they can be held liable under the federal securities laws.
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Item6 10 points Ebook references check my work check my work button is now disabled item 6 which of the following is true? multiple choice
A. The existence of generally accepted accounting principles (gaap) eliminates the need for professional judgment except in very unusual circumstances.
B. Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well.
C. Attaining a passing score on the part of the uniform cpa examination that covers professional ethics is evidence of integrity and commitment to ethical conduct.
D. A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.
what two characteristics must an item possess to have monetary value?
In order for an item to have monetary value, it must possess two characteristics: it must be considered scarce or limited in supply, and it must be widely accepted as a medium of exchange.
What are the two characteristics must an item possess to have monetary value?Scarcity: A scarce item is one that is limited in supply. The scarcity of an item makes it valuable because people are willing to trade something of value in exchange for it. For example, gold is a valuable resource because it is relatively rare and difficult to obtain. The limited supply of gold means that it is valuable to people who want to use it for jewelry, investment, or other purposes. Other examples of items that have scarcity value include diamonds, oil, and rare coins.Acceptability: Acceptability means that an item is widely recognized and accepted as a medium of exchange. This is what gives an item its purchasing power. For example, in the United States, the dollar is widely accepted as a medium of exchange. People are willing to accept dollars in exchange for goods and services because they know that they can use those dollars to buy other goods and services. The widespread acceptance of a currency is often backed by a government or other authority that guarantees the value of the currency.To know more about Monetary value, check out:
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What percentage of home-based businesses have no employees?
Around 60% of home-based businesses have no employees also known as non-employer business.
What types of enterprises don't hire anyone?A business that is liable to federal income taxes and that has yearly business receipts of $1,000 or more ($1 in the construction industries) but no paid workers qualifies as a nonemployer business. Independent contractors and real estate agents are examples of tiny nonemployer enterprises.
What kinds of products and services are offered by non-employer firms?Employers without employees run museums and hobby stores, offer pet care and dating services, manufacture apparel, electrical goods, and machinery, sell real estate, handle data, and do a lot more.
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1. hallmark can custom print logos onto coffee mugs. it sells its most popular style for $10 and has a marginal cost of $6. hallmark recently ran a market experiment and determined market demand elasticity of its mugs is -5. a. should hallmark raise or lower the price of its mugs? explain why. (hint: use current and desired margin approach.) (2 points) b. what should be the new price of its mugs? show your work.
A. To achieve a profit margin of 50%, Hallmark should lower the price of its mugs from $10 to $9.
B. The new price of the mugs should be $9.
Hallmark should reduce the price of its mugs based on the information presented. This is because a market demand elasticity of -5 suggests that for every 1% increase in price, the quantity sought falls by 5%.
Hallmark must first identify the intended profit margin per mug in order to determine the new price utilizing the current and desired margin technique. The profit margin is stated as a percentage of the price as the difference between the price and the marginal cost. The current profit margin in this situation is ($10 - $6) / $10 = 40%.
If Hallmark wants a 50% profit margin, the new pricing can be calculated as follows:
(1 + desired profit margin) x marginal cost = new pricing
(1 + 0.5) x $6 = new pricing
$9 is the new pricing.
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consider problems 2.20 and 2.21. assume for operation 4 that the assembly operation has a standard time of four minutes, reliability of 95%, and efficiency of 98%. compute the number of assembly machines required for each scrap level. what is the impact of the scrap percentage on the number of machines? why might a facilities planner want to be involved in the requirements definition process?
The number of assembly machines required for each scrap level can be calculated using the following formula:
How many assembly machines are required ?Total Time Required / [(1 - Scrap Percentage) x Standard Time x Reliability x Efficiency] = Number of MachinesSince more parts must be manufactured to make up for the higher quantity of scrap, as the scrap percentage rises, more machines become necessary.To make sure that the facility can house the necessary number of machines, a facilities planner might wish to be involved in the needs specification process. The planner may need to take into account things like the amount of available space, the necessity for electricity and other utilities, and environmental and safety standards. The planner can assist in identifying potential challenges and offering solutions by getting involved early in the process. By doing this, costly adjustments and delays later on in the project can be avoided.
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division 0 (sections 00020 through 00830) of the commercial specifications, titled ? , outlines the scope of work and contract requirements as well as describes characteristics of the design and bidder responsibilities.
An executive sales role known as a "bid manager" is responsible for handling bids on behalf of the company, generally in response to requests for bidder (RFPs) from clients but also as a result of proactive business development activities.
Bid managers oversee the creation of the solution and proposal while highlighting the company's value proposition as "Bid Project Managers." They make sure bidder all customer requirements are satisfied. To create and deliver winning bid strategies, bid managers usually work with the firm's board of directors and C-level management (such as the CEO and CFO).Project bids must be submitted to present or prospective clients by bid managers.
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which one of the following is not an integral part of the managerial process of crafting and executing strategy?
That managerial process of creating and implementing strategy does not necessarily include developing a tested business model.
Who among the aforementioned is not a primary managerial responsibility involved in strategy execution?The company's personnel data must be maintained, which is the CIO's duty. This work is not a component of the primary managerial tasks inside the strategy execution process because it is not a part of the strategic execution process. Thus, alternative is the right response.
What is the five fundamental steps in the process of developing and implementing a strategy?The five fundamental tasks of corporate strategy are as follows. These entail formulating a strategic strategy and mission, establishing goals, creating tactics to attain those goals, putting the tactics into practice and carrying them out, and assessing and measuring performance.
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"If the number of sellers in a market increases, the"a. demand in that market will increase. b. supply in that market will increase. c. supply in that market will decrease.d. demand in that market will decrease.
If the number of sellers in a market increases, the b. supply in that market will increase.
In general, the supply in a market will rise as the number of suppliers increases. This is because there are more producers that are able and willing to sell goods or services in the market when there are more sellers. The competition among vendors grows as the number of merchants does. This rivalry may result in more affordable and higher-quality goods, which may draw more customers to the market.
Additionally, if firms try to take advantage of the increasing demand, this could result in a rise in supply. The amount of supply on the market may also be influenced by other variables, such as modifications in production costs or technological advancements.
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All following statements about bank accounts are true except
The correct option is Option C - If there is a mistake on your bank account, you should contact your financial institution immediately
Below are some generic generalizations about bank accounts that, depending on the situation, may or may not be true:
Deposited funds in bank accounts can generate interest.Bank accounts are useful for storing and managing money.Bank accounts in the United States are insured by the FDIC up to a specified amount.ATMs, online banking, and bank locations are all ways to access your bank account.Fees for services such as overdrafts and insufficient funds are common in bank accounts.Electronic transfers and payments can be made using bank accounts.For such more question on financial
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The following question may be like this:
Which of the following statements is TRUE?
a. if there is a mistake on one of your bank accounts, there is nothing you can do about it
b. if there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves
c. if there is a mistake on your bank account, you should contact your financial institution immediately
d. none of the above
In estimating the difference between two population means, if a 95 percent confidence interval includes zero, then we can conclude that there is a 95 percent chance that the difference between the two population means is zero.a. Trueb. False
False. When calculating the difference between two population means, we can say that there is a 95% probability that the difference between the two population means is zero, which is FALSE, if the 95% confidence interval contains zero.
If a 95 percent confidence interval for calculating the difference between two population means contains zero, the difference between the sample means is not statistically significant at the 5% level. A 95% possibility that the difference between the two population means is zero does not imply that it always is. Only the range of values that the genuine difference between the population means is likely to lie within is given by the confidence interval. The word "population" is used to describe the estimated number of individuals who are known to reside in a specific geographic region.
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How much money does the team that wins the Super Bowl get?
According to the collective bargaining agreement of the NFL, each member of the winning Super Bowl 2022 squad will receive $157,000.
How and by whom was the NFL founded?Thorpe was replaced by Columbus Panhandles owner Joe Carr because team owners felt they needed a leader with more financial sense. As a result, the APFA changed its name to the National Football League in 1922. The NFL languished as the 1920s raged.
Who was the NFL's inaugural franchise?The Chicago Bears and the Arizona Cardinals are the only two teams that were on the original NFL roster, and the Cardinals are the NFL's oldest team. The Cardinals had their origins in 1898, decades before the NFL was created, even though the team has been located in Arizona since 1988.
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which step of the formal planning process involves evaluating goals and plans?
The third step of the formal planning process involves evaluating goals and plans.
What exactly does management planning entail?The management task of planning include deciding on a course of action for achieving goals and creating objectives. Managers must foresee future conditions and understand the current environmental issues their firm is facing in order to effectively plan.
What does the term "planning process" mean?In the planning process, goals are created, tasks are developed to achieve goals, resources are identified, a timeline is created, tracking and assessment criteria are established, the plan is finalized, and the team is given access to the plan.
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supporters of globalization say that critics do not understand that the benefits of free trade outweigh themultiple choice question.costs.usage.production.sales.
The correct answer is "costs." Globalization refers to the process of increased interconnectedness and interdependence of countries in the world through the expansion of international trade, investment, and communication.
Supporters of globalization argue that it brings numerous benefits, such as increased economic growth, job creation, access to a wider variety of goods and services, and improved standards of living for people around the world. One of the main benefits of globalization is increased economic growth. Globalization allows countries to specialize in the production of goods and services that they are most efficient at producing, and then trade with other countries for goods and services they cannot produce as efficiently. This leads to increased productivity, lower prices for consumers, and higher profits for businesses. As a result, the global economy grows, creating more job opportunities and improving living standards for people around the world. In addition, globalization provides access to a wider variety of goods and services. By opening up trade between countries, consumers have access to products from around the world at lower prices. This creates greater competition among businesses, leading to more innovation and better quality products. Critics of globalization, however, argue that the costs of free trade outweigh the benefits. One of the main costs is job losses in certain industries. When businesses move production to countries with lower labor costs, workers in the higher-cost countries may lose their jobs. This can lead to increased unemployment and economic hardship in the affected communities.
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a merchant bought a number of barrels of apples for $120 $ 120 . he kept two barrels and sold the remainder at a profit of $2 $ 2 per barrel making a total profit of $34 $ 34 . how many barrels did he originally buy?
If a merchant bought a number of barrels of apples for $120 . he kept two barrels and sold the remainder at a profit of $2 per barrel making a total profit of $34, then he bought 19 barrels.
Let's start by setting up an equation to represent the given information.
Let's assume the merchant originally bought x barrels of apples.
The cost of x barrels is $120.
After keeping 2 barrels for himself, he sold the remaining (x - 2) barrels at a profit of $2 per barrel, which means he earned a total profit of $2(x - 2) = $2x - $4.
We know from the problem that the total profit he made was $34.
Putting it all together:
$2x - $4 = $34
Solving for x:
$2x = $38
x = 19
Therefore, the merchant originally bought 19 barrels of apples.
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the purpose of the statement of cash flows include which of the following? (select all that apply.) multiple select question. provide information about the revenues that occurred during the period. provide information about cash receipts that occurred during the period. provide information about the financing activities that occurred during the period. provide information about the investing activities that occurred during the period. provide information about the expenses that occurred during the period. provide information about cash disbursements that occurred during the period.
A statement of cash flows is used to show how much money was received and spent over the course of a period.
A cash flow statement is a type of financial statement that presents total information on all cash inflows a business makes from ongoing activities and outside sources. It also includes any cash outflows made within a specific time period to cover investments and business expenses.
A cash flow statement's goal is to give a thorough account of what happened to a company's cash over a given time period, also referred to as the accounting period. Based on how much money is coming into and going out of the company, it shows how well a company can operate both short- and long-term.
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ranch services just paid its annual dividend of $2.50 per share. the dividends are expected to grow at 24 percent annually for the next 4 years and then level off to an annual growth rate of 7 percent indefinitely. what is the price of this stock today given a required return of 10.25 percent?
the stock price today is $97.44. The dividend discount model, which argues that the price of a stock is equal to the present value of all projected future dividends, must be used to address this problem.
This model's formula is as follows: P = D / (r - g) (r - g) where P is the stock price and D is the next dividend payment r = necessary rate of return g = estimated yearly dividend growth rate In this scenario, the next dividend payment is $2.50, and the predicted annual dividend growth rate is 24% for the following four years and 7% after that. To get the current stock price, we may utilize the following steps Dividends for the following four years are calculated as follows Dividend for the first year = $2.50 * (1 + 24%) = $3.10 Dividend for the second year = $3.10 * (1 Year three dividend = $3.85 * (1 + 24%) = $4.78 Year four dividend = $4.78 * (1 + 24%) = $5.93 Calculate the dividend as a perpetuity at the conclusion of year 4: Dividend for year 4 = $5.93 * (1 + 7%) / (10.25% - 7%) = $111.08 Calculate the total of all dividends' current values: PV = $3.10 / (1 + 10.25%) + $3.85 / (1 + 10.25%) ^2 + $4.78 / (1 + 10.25%) ^3 + $5.93 / (1 + 10.25%) ^4 + $111.08 / (1 + 10.25%) ^4\sPV = $97.44 As a result, the stock price today is $97.44.
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QuestionWhen both demand and supply curve shift leftward, _____.This question has multiple correct optionsAequilibrium quantity decreases Bequilibrium price may increase, decrease or remain unchangedCequilibrium quantity may increase, decrease or remain unchangedDequilibrium price decreasesHard
As both the supply and demand curves move to the left, the equilibrium quantity declines, but the equilibrium price may move in either direction depending on how much the two curves shift.
Both the price and the quantity will fluctuate when supply and demand both vary. When supply and demand are flowing in the same direction, price is unpredictable. This is due to the fact that higher prices will result from increased demand, whilst lower prices will follow from the rising supply. The price axis travels in both directions, thus the overall impact depends on whether the change is more pronounced. An increase in the quantity is inevitable because both movements cause the equilibrium quantity to rise. According to this, quantity is uncertain when supply and demand shift in opposing directions because one shift will provide an increase while the other will produce a decrease.
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a company borrowed $1 million at a 10% interest rate. the company's income tax rate is 40%. what is the amount of the annual tax benefit resulting from debt financing
The periodic duty benefit performed from debt backing is $40,000
The periodic duty benefit performed from debt backing is equal to the quantum of interest paid on the debt multiplied by the company's income duty rate.
In this case, the company espoused $1 million at a 10% interest rate, which means it'll pay $100,000 in interest each time.
The duty benefit can be calculated as follows
Tax Benefit = Interest Paid x Income Tax Rate
Tax Benefit = $100,000 x 40%
Tax Benefit = $40,000
thus, the periodic duty benefit performed from debt backing is $40,000.
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gasoline and motel rooms are complements for many consumers. when the price of gasoline declines, consumers take longer vacations and rent more motel rooms. therefore, the cross-price elasticity of demand between gasoline and motel rooms is
Gasoline is a product that is relatively inelastic, which means that price changes have little impact on demand. Price elasticity quantifies how responsively demand responds to price changes.
How flexible is the gasoline supply?The gasoline supply curve is kinked, though. Generally speaking, the supply is inelastic at higher price levels and elastic at lower price levels. This is due to the fact that oil producers reduce their output when prices are low or stockpile the oil if supplies cannot be met.
In the short or long term, is gasoline more elastic?In both the long and short runs, gasoline demand is generally elastic to changes in price and income, with the long run's elasticity being larger.
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