Answers
Answer:
b. Increase the supply of the good now
Explanation:
Price expectations are one of the determinants of the supply curve. Changes in expectations will make the curve move right or left depending on whether future prices are expected to be lower or higher.
If prices are expected to be lower in the future, that will generate the supply curve to shift right, increasing the quantity supplied. This has to do with producers seeking to sell their goods at the highest price possible. If prices in the present are higher than what they would be in the future then they would want to sell more now than later.
Related Questions
When total debits equal total credits on a trial balance, we can be assured that no errors of any sort occurred during the preceding steps in the accounting cycle.A. TrueB. False
Examine the experience of shopping online versus shopping in a traditional environment. Imagine that you have decided to purchase a digital camera (or any other item of your choosing). First, shop for the camera in a traditional manner. Describe how you would do so (for example, how you would gather the necessary information you would need to choose a particular item, what stores you would visit, how long it would take, prices, etc.). Next, shop for the item on the Web or via a mobile app. Compare and contrast your experiences. What were the advantages and disadvantages of each? Which did you prefer and why?
When a consultant prepared marketing dashboards showing sales data for different household types over a four-year period for Tony's pizza, this was which step of the marketing research approach?
Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 7 percent and 4 percent, respectively. Assumr risk free rate of 2%.a) Estimate the Sharpe ratio of each mutual fundb) According to the Sharpe ratio, which fund performed better?
Answers
Answer: Money multiplier is 12.50
Explanation: Money Multiplier is the amount of cash to be reserved.
It is calculated thus: 1/r where r is the rate
= 1/0.08= 12.50
Increasing the reserve ration will decrease the multiplier.
b. If there is $33,600 in earnings available to common stockholders, and Holtzman’s stock has a P/E of 22 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Current price $
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answers
Answer:
A. $10.71
B.$36.96
C. 3.45 times
Explanation:
The Holtzman Corporation
A.
Total assets $384,000
Less:current liabilities ($54,000)
long-term liabilities of ($79,000)
Stock holder equity $251,000
Less preferred stock( $36,800)
Net worth assigned to common $214,200
Common shares outstanding $20,000
Book value per share (Net worth) per share $10.71
Book value per share = $214,200/$20,000
= $10.71
B. Earnings per share = Earnings available to common stockholders /Numbers of shares
$33,600/$20,000
=$1.68
Price =P/E×EPS
22×$1.68
=$36.96
C. Market value per share to book value per share
$36.96/$10.71
3.45 times
Answers
Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
where PMT=$800; i= 5%, n= 10
= 6,177.39
a2- = 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- = 3,353.98
b2- =2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answers
Answer:
a. 2,800,000 shares
b. $49.50
Explanation:
a. Poison is a tactic used by a company threatened with an unwelcome takeover bid to make itself unattractive to the bidder
Shares that the unfriendly outside group must acquire for the poison pill to go into effect is
= 20% of 14,000,000 shares.
= 14,000,000 × 20%
= 2,800,000 shares
b. The new purchase price for the existing stockholders will be
=$66 × (1 - 0.25)
= $49.50
Purchases (gross) 697,000
Freight-in 31,400
Sales revenue 924,000
Sales returns 73,200
Purchase discounts 12,100
Compute the estimated inventory at May 31, assuming that the gross profit is 40% of net sales
Answers
Answer:
The estimated inventory at May 31 is $240,100
Explanation:
The gross profit is the difference between the sales revenue and the cost of good sold.
The gross profit percentage is the ratio of gross profit to net sales expressed as a percentage.
Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.
Net purchases = $697,000 - $12,100
= $684,900
Net sales = $924,000 - $73,200
= $850,800
Gross profit margin percent = gross profit/net sales
gross profit = 0.4 * $850,800
= $212,700
cost of goods sold = $850,800 - $212,700
= $638,100
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases + freight inward - cost of goods sold = closing balance
$161,900 + $684,900 + $31,400 - $638,100 = Estimated ending inventory
Estimated ending inventory = $240,100
Answers
Answer:
a. Gross pay for the week = $2,240
b. net pay for the week = $683
Explanation:
a) gross pay for the week = total amount earned, before the deduction of taxes and other charges, it is calculated as follows:
amount earned per hour = $32
amount earned in excess of 40 hours = 1.5 × 32 = $48 per hour
Total hour worked = 60 hours
This means that in the first 40 hours, the employee earned 32$ per hour and $48 per hour for the next 20 hours
∴ amount earned in the first 40 hours = 32 × 40 = $1,280
amount earned in the next 20 hours = 48 × 20 = $960
∴ Gross pay for the week = 1,280 + 960 = $2,240
b) net pay for the week = Gross pay - (Total deductions)
Deductions are as follows:
social security tax rate = 6.0% of gross pay = 0.06 × 2,240 = $134.4
Medicare tax rate = 1.5% of gross pay = 0.015 × 2,240 = $33.6
Federal income tax = $515
Total deductions = 134.4 + 33.6 + 515 = $683
∴ Net pay for the week = 2,240 - 683 = $1,557