BUSINESS COLLEGE

In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would _______.A. have an incentive to change their plant size to produce their current output.
B. not be covering their total fixed costs.
C. not be covering their total variable costs.
D. a and b b and c

Answers

Answer 1
Answer:

In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would have an incentive to change their plant size to produce their current output.

Option: A

Explanation:

In perfect competition, balance is the stage where consumer demands are equal to market supply. In the short term demand can impact stability. In the long run both a product's demand and supply would influence the balance in perfect competition.

The increase in the quantity of output generated is the SRTC i.e short-run total cost and LRTC i.e long-run total cost scales because generating more output needs more labor utilization for both the short and long runs, and since, in the long run, generating more output implies using more of the physical resource supply; and by using more of either supply means incurring more production costs.

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Answers

Answer: QUESTION 1. 2 Question 2 no QUESTION 3 MAYABE QUESTION 4 I MAY DECRATE ASHCETIC LIKE QUESTION 5 HELL YES QUESTION 6 I WOULD KEEP IT

Explanation:

Atlantis Corporation has 13,000 shares of 14​%, $81.00 par noncumulative preferred stock outstanding and 30,000 shares of no−par common stock outstanding. At the end of the current​ year, the corporation declares a dividend of $186,000. How is the dividend allocated between preferred and common​ stockholders?

Answers

Answer:

The dividend of $147,420 is allocated to preferred stockholders

A dividend of $38,580 is allocated common stockholders

Explanation:

The preferred stock has a fixed amount of dividend which is a percentage of its  par value computed thus:

preferred dividend=13,000*$81*14%=$ 147,420.00  

However, when preferred stock dividend is taken away from the total dividends, the result is dividends for common stockholders

Common stockholders' dividends=$186,000-$147,420=$38,580.00  

Williams Construction Inc. is building a new facility that will cost $45 million. Williams Construction will borrow $42 million from Wells Fargo bank and pay the remainder immediately as a down payment. Williams Construction will pay 8% interest but will make no payment for 4 years, at which time the entire amount will be due. How much will Williams Construction’s payment be?

Answers

Answer:

Williams Construction’s payment would be $57.4 million

Explanation:

According to the given data we have the followng:

cost of new facility=$45 million

money borrowed=$42 million

interest rate=8%

Therefore, to calculate the amount of Williams Construction’s payment we would have to calculate the following formula:

amount of Williams Construction’s payment=P(1+r)∧n

amount of Williams Construction’s payment=$42 million(1+0.08)∧4

amount of Williams Construction’s payment=$57.4 million

Williams Construction’s payment would be $57.4 million

Yankee Tours provide seven-day guided tours along the New England coast. The company pays its guides a total of $100,000 per year. The average cost of supplies, lodging and food per customer is $500. The company expects a total of 500 customers during the period January through June, and a total of 1,500 customers from July through December. Yankee wants to earn $100 income per customer. For promotional reasons the company desires to charge the same price throughout the year. Based on this information, what is the correct price per customer? (Round to nearest dollar.)

Answers

Answer:

The correct price per customer is $650

Explanation:

The computation of the correct price is shown below:

= Fixed cost + expected number of customers + net income per customer

where,

Fixed cost per customer = Total cost ÷ (total customers + expected customers)

                = $100,000 ÷ (1,500 + 500)

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Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritance. Kirby has interviewed two potential advisors. The first person indicated that he would not charge for his advice but would charge a 4.50% commission on any mutual funds purchased when managing the $250,000. The second person indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. Which advisor should Kirby choose if he wants the $250,000 managed and is interested in minimizing his upfront expenses?A. The first advisor because there is no planning fee.
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C. The first advisor because the total first-year cost is $5,000.
D. Because the cost is approximately the same, either advisor could be selected.

Answers

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

Wahoo just issued preferred stock at a semiannual dividend of $2 per share. If you have an annual discount rate as an investor of 8%, how much the price of the preferred stock should be

Answers

Answer:

The price of the preferred stock should be $ 50.

Explanation:

Price of the issued preferred stock: semianual dividend of $2 per share.

Annual discount rate: 8%

With these details we are able to perfom the following calculations:

Annual Preferred Dividend = Semi Annual Dividend x 2

= $2.00 x 2 = $4.00 per share

Then we know that the Price of Preferred Stock = Annual Dividend per share on Preferred Stock / Discount Rate

So this is= $4.00 per share / 0.08

= $50.00 per share. Price of the preferred stock
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