Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock. On March 12, 20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to build a new warehouse on the property in 20X3. Required: a. Prepare the worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3. (If no entry is
Answers
Answer: Check attachment
Explanation:
The worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3 has been prepared and attached.
Note:
Gain on land sale = 185,000 - $140,000
= $45,000
Investment in Roan Corporation:
= 70% × $45,000
= 0.7 × $45,000
= $31,500
Non controlling interest of Roan Corporation = $45,000 - $31,500
= $13,500
Check the attachment for further explanation.
Related Questions
An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note. B. A portfolio of long positions in forward-rate agreements (FRAs) for each swap payment date, all at the same fixed rate as the swap. C. All of the above. D. A bond that pays the fixed rate minus the floating rate each period.
Answers
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
Cheers
Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing an electronic reader for $140. Check all that apply. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $140. If Mo pays cash, the cost of the purchase will be $140. If Mo uses the credit card and pays off the balance at $30 a month for 7 months with no late fees, the cost of the purchase will be $143.34. If Mo pays cash, the cost of the purchase will be $135.80. If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.
Answers
Answer:
B: If Mo pays cash, the cost of the purchase will be $140.
E: If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89.
F: If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.
The correct answers to this question are B, E, and F and they are also
answers 2, 5, and 6.
Based on the information given, the correct options will be:
If Mo pays in cash, the cost of the purchase will be $140. If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.It should be noted that when she pays in cash, she'll have to pay $140. In a situation whereby she uses the credit card, she'll be given a discount of 3%. Therefore, the amount that she'll have to pay will be:
= $140 - (3% × $140)
= $140 - (0.03 × $140)
= $140 - $4.20
= $135.80.
In conclusion, the correct options are B, E, and F.
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Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end: Credit sales $10,000,000 Accounts receivable 3,000,000 Allowance for uncollectible accounts (debit balance) 50,000 Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Marr adjust its allowance for uncollectible accounts at year end
Answers
Answer:
$140,000
Explanation:
The computation is shown below:
Ending allowance for uncollectible accounts is
= Accounts receivable × Given percentage
= $3,000,000 × 3%
= $90,000
Now the
Adjusted balance is
= Ending allowance for uncollectible accounts + debit balance of Allowance for uncollectible accounts
= $90,000 + $50,000
= $140,000
stock that has a current price of $25.00, a beta of 1.25, and a dividend yield of 6%. If the Treasury bill yield is 5% and the market portfolio is expected to return 14%, what should MUSS’s stock sell for at the end of an investor's two year investment horizon?
Answers
Answer:
$30.2067
Explanation:
From the given question, using the dividend discount model
[tex]V_0 = \dfrac{D_1}{r - g}[/tex]
where:
r is the Expected return on stock and be calculated as:
Expected return on stock = Risk free rate + Beta × (Expected Market Return - Risk free rate)
Expected return on stock = 5% + 1.25 × (14% - 5%) = 16.25%
However, the current price in this process will b used as the dividend price for all future expenses.
Dividend Yield = Current Dividend/The Share Price
Current dividend D0 = 6% × $25.00 = $1.50
D₁ = D₀ × (1 + g)
D₁ = 1.5 × (1 + g)
Thus, we can now employ the use of the growth dividend model (constant) to determine the value of g as follows:
[tex]25 = \dfrac{1.5 \times (1 + g)}{0.1625 - g}[/tex]
By cross multiply, we have:
4.0625 - 25g = 1.5 + 1.5g
collect like terms, we have:
4.0625 - 1.5 = 1.5g + 25g
2.5625 = 26.5g
Divide both sides by 26.5, we have:
2.5625/26.5 = 26.5g/26.5
g = 9.67%
Similarly, suppose the value for the second year-end to be Y₂;
Then the constant growth dividend model can be computed as:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
where;
D₃ = D₂ × (1 + g)
D₂ × (1 + g) = D₁ × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g) = D₀ × (1 + g) × 3
D₃ = 1.5 × (1 + 9.67%) × 3
D₃ = $1.9876
Finally:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
[tex]Y_2 = \dfrac{1.9876}{0.1625 - 0.0967}[/tex]
Y₂ = $30.2067
things that can be used to make money in this pandemic like face mask, face shield give me atleast 5 business.
Answers
Answer:
1. A Kobe or Chadwick Boseman picture memorial
2. Toilet paper
3. Paper towels
4. A device that scares away Karens
5. An app that is similar to tiktok
6. A Presidential debate muter
7. Killer Hornet Away spray
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10 July 13 Purchase 200 11 July 25 Sold ( 100 ) $ 14 July 31 Ending Inventory 140 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used.
Answers
Answer:
(a) FIFO (b) LIFO (c) weighted
average cost:
Cost of goods available for sale $2,600 $2,600 $2,600
Ending inventory 1,540 1,500 1,516
Sales $1,400 $1,400 1,400
Cost of goods sold 1,060 1,100 1,083
Gross profit $340 $300 $317
Explanation:
a) Data and Calculations:
Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 40 $ 10 $400
July 13 Purchase 200 11 2,200
July 25 Sold ( 100 ) $ 14 (1,400)
July 31 Ending Inventory 140
July 31 Goods available 240
Average unit cost = $10.83 ($2,600/240)
FIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,540 (140 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,060 (40 * $10 + 60 * $11)
Gross profit $340
LIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,500 (40 * $10 + 100 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,100 (100 * $11)
Gross profit $300
Weighted Average:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,516 (140 * $10.83)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,083 (100 * $10.83)
Gross profit $317
Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor that will guarantee all fishermen a certain price for their catch.
Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied.
With the enactment of this price floor for fish, what are some of the likely unintended consequences in the market?
Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
Answers
Answer:
As a result of the price floor, price would increase. As a result, quantity demanded will decrease and the quantity supplied would increase.
Supply would exceed demand and as a result there would be an excess supply of fish.
As an alternative to the price floor, the government can subsidise the cost of fishing. This would reduce the cost of producing fish
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
From 2015 to 2016, the overall price level rose from 200 to 220. Over the same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation. EXPLAIN your answer.a) Tuition rates increased at the same rate as inflation
b) Tuition rates increased at a slower pace than inflation
c) Tuition rates increased at a faster pace than inflation
d) Tuition rates and inflation cannot be compared with the numbers given
Answers
Answer:
C
Explanation:
Inflation is a persistent rise in general price level
Rise in Inflation rate = 220 / 200 - 1 = 10%
Rise in tuition fees = 115 / 100 - 1 = 15%
From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate
What factors should be considered for a leader when delegating responsibilities to committee members?
a. Politics and personnel
b. Money and connections
c. Trust and respect
d. Character and job code
What should be considered as key elements when planning the logistics of your event?
a) location, contracts, parking
b) date, director, charity
c) date, location, budget
d) location, budget, profit
What should you do during the development phase regardless of the type of event you are implementing?
a) identify your goals and objectives
b) identify the charity for the event profits
c) identify the location of the event
d) identify who will be the master of ceremonies
Which responsibility best describes the responsibility of the media or marketing director?
a. contracts
b. public relations
c. risk management
d. venue selection
Answers
Answer:
1) Character and job code
2) date, location, budget
3) identify your goals and objectives
4) public relations
Explanation:
When considering a committee member for a certain delegated role, a leader must select a person judged to have impeccable character and whose job code corresponds to the role you want to delegate to him/her.
When planning the logistics of an event, a suitable date must be chosen, an accessible and suitable location must be selected and the budget must be fair and manageable.
At the development phase of event planning, the event planner must identify exactly what the goals and objectives of the event are before other factors are considered.
The media or marketing director has the important role of promoting the image of the organization by engaging the public in issues regarding the organization. Hiss/her primary role has to do with public relations.
5. The Market Place recently offered 5,000 shares of stock for sale via a Dutch auction. The firm received bids as follows: 500 shares at $22.50; 2,500 shares at $22.20; 3,300 shares at $22; and 5,500 shares at $21. Ignoring all costs, how much will the firm receive from this auction
Answers
Answer:
$110,000
Explanation:
No of Shares Price Total number of shares
500 22.50 500
2500 22.20 3000
3300 22.00 6800
5500 21.00 12300
In Dutch auction, share are allotted from highest no. of share to lowest at the price where all the shares are taken. So in this case, highest number of shares are asked by Bidder D which is 5500 shares (available 5000 shares). The bidder will be getting shares at $22 because this is the price when all the shares were taken.
Hence, the amount the firm will receive from this auction = 5,000 *22 = $110,000
Imagine that Scott has asked your opinion about whether Barcelona should try to reduce involuntary turnover. What is an advantage of the current practice of firing a large percentage of employees?
a. Barcelona can replace less effective performers with better performers.
b. Barcelona can develop a monoculture in which all employees behave similarly.
c. Barcelona saves money on training costs.
d. Barcelona can gain valuable feedback about deficiencies in the company by conducting exit interviews.
Answers
Answer:
a. Barcelona can replace less effective performers with better performers.
Explanation:
As per the conversation i.e. you cant give the training to the people for enthusiastic them as you want to hire them also it is a transient business
So here you need to fire the old employees who are less effective and hire new employees who are enthusiastic that ultimately benefits the company
Therefore option a is correct
and the same is to be considered
What is not a principal tool used by government organizations to constrain the activities of businesses and consumers?
Answers
Answer:
The correct answer is: initiating negative social media campaigns and enacting regulations.
Explanation:
The main tool used by government organizations to restrict the activities of companies and consumers is to enact monetary policy and fiscal policy, which defines the inflation rates that affect companies, workers' income and the economy in general, influencing supply and demand directly.
The other option of the question, on the other hand, is not the main tool used by governmental organizations, since initiating negative campaigns on social networks and enacting regulations would be an unethical attitude and which is not of governmental competence, whose one of the fundamental principles is the impersonality of their actions.
The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 10. The firm has $5 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. If the $5 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.) c. If the $5 million is used to repurchase shares in the market at a price of $30 per share, how many shares will be acquired? (Do not round intermediate calculations and round your answer to the nearest whole share.) d. What will the new earnings per share be? (Use the rounded number of shares computed in part c but do not round any other intermediate calculations. Round your answer to 2 decimal places.) e-1. If the P/E ratio remains constant, what will the price of the securities be? (Use the rounded answer from part d and round your answer to the nearest whole dollar.) e-2. By how much, in terms of dollars, did the repurchase increase the stock price? (Use the rounded whole dollar answer from part e-1. A negative value should be indicated with a minus sign. Round your answer to the nearest whole dollar.) f. Has the stockholders' total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend? Yes No
Answers
Answer:
a. Compute the current price of the stock.
P/E ratio = 10
EPS = $5,000,000 / 2,000,000 stocks = $2.50 per stock
price = $2.50 x 10 = $25
b. If the $5 million is used to pay dividends, how much will dividends per share be?
$2.50, same as EPS
c. If the $5 million is used to repurchase shares in the market at a price of $30 per share, how many shares will be acquired?
$5,000,000 / $30 = 166,666.7 ≈ 166,667 stocks
d. What will the new earnings per share be?
outstanding stocks = 2,000,000 - 166,667 = 1,833,333
EPS = $5,000,000 / 1,833,333 = $2.73
e-1. If the P/E ratio remains constant, what will the price of the securities be?
price = $2.73 x 10 = $27.30
e-2. By how much, in terms of dollars, did the repurchase increase the stock price?
$27.30 - $25 = $2.30
f. Has the stockholders' total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend?
No
HELP PLEASE.
Recent research indicates that it may take only a few minutes to prevent unethical behavior. When workers face a choice between right and
wrong, they are about five times more likely to make the unethical choice when the decision is rushed.* Think about times in your life when you faced a moral decision and made the wrong choice. Did you feel rushed to make the decision? If you had taken more time to think or consult an ethical colleague, would you have made a different decision? (5-7 sentences )
Answers
Answer:
I had once visited a client and he, unusually, offered me a complimentary tip. Somewhere at the back of my mind, it felt off. So I declined. He on the other hand persisted.
Because I wanted to round up the meeting, I eventually accepted and left.
The next day was our weekly in-house academy - a day of the week when we set aside about 2 hours for learning and re-learning.
At that meeting, the HR Executive did a reminder on the value of the organisation, as well as the ethics which guide our operations. There she mentioned categorically that it was prohibited by the company to accept any type of cash gifts from the client or from the insurance companies.
As, soon as the meeting was done, I reported myself to the HR Executive and she advised that I return it and I did immediately, thankfully, the exact note was still in my possession.
I wrote a letter to the client respectfully returning the gift on the grounds that company policy forbade it and that marked the end of that episode.
If I had the company blueprint on ethics at my fingertips, I would have insisted on my initial position not to take the gift.
Cheers
What employment issue for flexible employees does the Walling v. A.H. Belo Corporation Supreme Court ruling address
Answers
Answer:
Fixed weekly pay
Explanation:
The Walling v. A.H. specified weekly salary for variable employees job challenge for flexible workers Ruling document of the Belo Company Supreme Court. Workers who work varying workweeks receive a set wage, irrespective about how many times per week may work. For starters, if they operated 35 or 40 hours, the employee should receive the same weekly wage. Therefore, the hourly wage of a salaried employee differs depending according to how many hours they work.
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $1,000 par value bond has 18 years to maturity and makes semi-annual coupon interest payments. If you purchased this bond, what would be the bond's yield to maturity
Answers
Answer:
6.35%
Explanation:
If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40
the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months
the bond matures in 18 years or 36 semiannual periods
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]
YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%
State the method of acknolwdgement
Answers
Explanation:
A page of acknowledgements is usually included at the beginning of a Final Year Project, immediately after the Table of Contents.
Acknowledgements enable you to thank all those who have helped in carrying out the research. Careful thought needs to be given concerning those whose help should be acknowledged and in what order. The general advice is to express your appreciation in a concise manner and to avoid strong emotive language.
Note that personal pronouns such as 'I, my, me …' are nearly always used in the acknowledgements while in the rest of the project such personal pronouns are generally avoided.
The following list includes those people who are often acknowledged.
Note however that every project is different and you need to tailor your acknowledgements to suit your particular situation.
Main supervisor
Second supervisor
Other academic staff in your department
Technical or support staff in your department
Academic staff from other departments
Other institutions, organizations or companies
Past students
Family *
Friends *
A bank estimates that their average balance on demand deposit accounts is $3,500, net of float. Each account costs the bank $250 per year in processing costs. The bank collects an average of $10 per month on each account in service charges. Assume reserve requirements are 10%. What is the net cost of an average demand deposit
Answers
Answer:
4.1%
Explanation:
Net cost of average demand deposit is computed as;
Net cost = (Non interest expense - Non interest income) / [Average balance × (1-RR)]
Annual non interest income= 12 × $10 = $120
Non interest expense = $250
Average balance = $3,500
RR = 10%
Therefore,
Net cost = ($250 - $120) / [$3,500 × (1-0.10)]
Net cost = $130 / $3,150
Net cost = 4.1%
1.Processes A, B, C, D, E, and F require service times of 3, 5, 2, 5, 3, and 5. Their arrival times are 0, 1, 3, 9, 10, and 12. What is the average turnaround time, waiting time, response time, and throughput when using SRJF, RR (q
Answers
Answer:
please check attachment for the answers I gave. they are in tabular form
Explanation:
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
Answers
Answer:
Interest= $90
Explanation:
Giving the following information:
Initial investment= $3,000
i= 3%
Number of periods= 1
First, we need to calculate the future value, using the following formula:
FV= PV*(1+i)^n
FV= 3,000*1.03= $3,090
Now, the interest earned:
Interest= 3,090 - 3,000
Interest= $90
If Tonya purchased 200 decorative pillows at $12 each and sold 75 of the pillows for $20 each, what is the cost of goods sold
Answers
Answer:
the cost of goods sold is $1,500
Explanation:
The computation of the cost of goods sold is
= Opening inventory + purchase - ending inventory
= $0 + 200 × $12 - (200 × $12 - 75 × $20)
= $ + $2,400 - ($2,400 - $1,500)
= $2,400 - $900
= $1,500
hence, the cost of goods sold is $1,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Answers
Answer:
$2 million or $2,000,000
Explanation:
The computation of the revenue and gross profit or loss will appear in the company’s income statement in the first year is shown below:
= revenue recognized - cost incurred
The Total cost is
= $6 + $9
= $15
And, the revenue recognized is
= $6 ÷ $15 × $20
= $8
So, the gross profit is
= $8 - $6
= $2
hence, the gross profit is $2 million
Epiphany is an all-equity firm with an estimated market value of $400,000. The firm sells $275,000 of debt and uses the proceeds to purchase outstanding equity. Compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity. Group of answer choices 0.31, 0.69 0.34, 0.66 0.48, 0.52 0.69, 0.31
Answers
Answer:
Epiphany
Weight in equity = 0.31
Weight in debt = 0.69
Explanation:
a) Data and Calculations:
Estimated market value of equity = $400,000
Debts = $275,000
Net equity after debt = $125,000
Weight in equity = $125,000/$400,000 = 0.31
Weight in debt = $275,000/$400,000 = 0.69
b) The weight in equity shows the relationship between the equity and the total capital (equity and debt) in use in Epiphany after the sale of debt and repurchase of outstanding equity.
c) The weight in debt shows the relationship between the debt capital and the total capital (equity and debt) in use in Epiphany after the sale of debt and repurchase of outstanding equity.
The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-10,000p, where p is the price of tickets. If the price of tickets is 12 birr, calculate price elasticity of demand for tickets and draw the demand curve
Answers
Answer:
a. The price elasticity of demand for tickets -1.50.
b. See the attached pdf file for the demand curve.
Explanation:
a. Calculate price elasticity of demand for tickets
Given;
p = 12
D(p) = D = 200,000 - 10,000p .................................................................... (1)
Substituting p = 12 into equation (1) to find the value of D, we have:
D = 200,000 – (10,000 * 12) = 200,000 - 120,000 = 80,000
Differentiating equation (1) with respect to p, we have:
dD/dp = -10,000
To calculate elasticity of demand, we use the formula for calculating the elasticity of demand as follows:
E = Elasticity of demand = (p / D) * (dD/dp) ................... (2)
Substituting the relevant values into equation (2), we have:
E = (12 / 80,000) * (-10,000) = 0.00015 * (-10,000) = -1.50
Therefore, the price elasticity of demand for tickets -1.50.
Note: Since the absolute value of E i.e. |-1.50| is greater one, it therefore implies that the demand for tickets is elastic.
b. Draw the demand curve.
Note: See the attached pdf file for the demand curve
To draw the demand curve, we need to obtain the new price and the new quantity demanded as follows:
We start by assuming that the price of tickets decreases from 12 birr to 11 birr. Therefore, the percentage change in price is obtained as follows:
Percentage change in price = ((New price – Old price) / Old price) * 100 = ((11 - 12) / 12) * 100 = -8.33%
To calculate the percentage change in demand for tickets, we use the following formula for calculating the elasticity of demand:
E = Percentage change in demand / Percentage change in price ............. (3)
Since from part a above, E = -1.50
And, as calculated here, Percentage change in price = -8.33%, or 0.0833
Substituting the values into equation (3) and solve for Percentage change in demand, we have:
-1.50 = Percentage change in quantity demanded / -0.0833
Percentage change in quantity demanded = (-0.0833) * (-1.50) = 0.12495, or 12.495%
Approximating to 2 decimal places, we have:
Percentage change in quantity demanded = 12.50%
Since the answer is positive, this implies that the demand for tickets D increases by 12.50% when price for tickets decreases by 8.33%. This confirms that the demand for tickets is truly elastic as the percentage change in demand for ticket of 12.50% is greater than the percentage change in price of -8.33%.
The new D can therefore be calculated as follows:
New D = D + (D * Percentage change in demand demanded) = 80,000 + (80,000 * 12.50%) = 90,000
From the calculations above, we have:
Initial price = 12 birr
New price = 11 birr
Initial quantity = D = 80,000
New quantity = New D = 90,000
The values above are then used to draw the demand curve in the attached pdf file.
Since there is a negative relationship between price and quantity demanded in economics, the curve in the attached excel file shows the effect of a decrease in the price of tickets from 12 birr to 11birr (as shown by the arrow) on the quantity demanded for tickets that increases from 80,000 to 90,000 (as shown by the arrow).
Since the demand for tickets is elastic as obtained in part a above, it implies that the percentage change in the quantity demanded for ticket is greater than the percentage change in the price of tickets. This makes the demand curve to be flatter as shown in the attached pdf file
From the demand curve in the attached pdf file; the demand curve for tickets is flatter, and the gap between the initial quantity demanded 80,000 and the new quantity demanded 90,000 is wider than the gap between the initial price 12 birr and the new price 11 birr. This indicated that the percentage change in the quantity demanded of 12.50% which is an increase from 80,000 to 90,000 is higher than the percentage n the price for tickets of 8.33% which is a decrease from 12 birr to 11 birr.
The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of A. increasing opportunity cost. B. decreasing marginal price. C. total benefits. D. increasing marginal cost. E. decreasing marginal benefit.
Answers
Answer:
E. decreasing marginal benefit.
Explanation:
The law of diminishing marginal utility can be explained as whenever there is rise in the supply of particular goods/services, then the marginal utility falls. Utility in Economics can be regarded as Satisfaction derived from particular goods/services.
Therefore, in the case of the question, point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle
decreasing marginal benefit. Because as the consumption of the lemonade increases, marginal utility gotten from
every added units taken will start reducing like that.
When a mentally challenged candidate is overlooked by a recruiter even though he possesses skills that are perfect for the job, which perceptual distortion is likely to be experienced by the recruiter?
a. Halo effect
b. Selective perception
c. Ability stereotypes
d. Projection
e. Self-fulfilling prophecy
Answers
The correct answer is C. Ability stereotypes
Explanation:
Ability stereotypes imply incorrect or inaccurate perceptions about people with different abilities including people with intellectual or cognitive disabilities or mentally challenged people. This often means people consider mentally challenged people unable to perform tasks, understand certain information, among others.
This type of stereotyping occurs in the situation presented because the recruiter is not considering a specific candidate because he/she is mentally challenged. However, this condition does not imply the candidate does not have the skills or qualities to be in this job. Indeed, this candidate can be more suitable than an individual with regular intellectual abilities.
Corporation A has the following returns for the past three years: 7 percent, 13 percent, and 10 percent. Assume each year return had the same probability (weights of 1/3 each). Calculate the expected return
Answers
Answer:
10.00%
Explanation:
The expected return is the weighted average of all the returns recorded thus far wherein the probability of each return occurring is used as the weight of each return as shown below:
Expected return=sum of (weight* value of return)
Expected return=(7%*1/3)+(13%*1/3)+(10%*1/3)
Expected return=0.023333333 +0.043333333 +0.033333333
Expected return=10.00%
What would be most likely to happen if the discount rate were raised?
A. Depositors would make a run on a bank.
thing
B. Banks would make fewer loans.
C. Creditors would refuse to pay back loans.
D. Banks would stop opening savings accounts.
Answers
Answer:
B. Banks would make fewer loans
Explanation:
The discount rate is the interest rate that commercial banks pay to the Federal Reserve for loans received. Banks usually borrow to cater to their short-term cash-flow requirements. The discount rate is higher than the inter bank rate or the fed funds rate(the rate that banks charge each other for loans).
An increase in the discount rate causes the inter bank rate to rise (the Fed controls both rates). It means commercial banks are borrowing money from the Fed and each other at a higher interest rate. Consequently, commercial banks charge a higher interest rate for loans advanced to customers. An increase in interest rates at the banks discourages customers from borrowing.
If someone drank a six pack beer ($10) everday for ten years what would the opportunity cost be relative to putting that same money in a stock fund earning 7%
Answers
Percentage of sales budgeting can also be called _____.
arbitrary budgeting
objective and task budgeting
rule of thumb budgeting
competitive budgeting
Answers
Answer:
promotional budget is set as a percentage of current or anticipated sales
Typical percent of sales is 2%-5%
Explanation:
so I would have to say arbitrary budgeting