Demand is elastic with regard to price if the demand price elasticity (c) is found to be -6.
The quantity sought for a good is measured according to its price elasticity of demand. Almost all goods see a decrease in quantity demanded when prices rise, however certain goods experience this decrease more than others.
Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income. It is primarily employed to determine how changing a product's price will affect consumer demand.
Therefore, the Demand is price elastic if the demand price elasticity is found to be -6.
Option C is correct.
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consider the components of the national savings and investment identity, categorized below. each scenario will affect one component of the identity. classify each scenario according to the component it will affect. a worker's contribution to a retirement fund is a farmer buying a new tractor is a decrease in automobile exports is a domestic company building a factory is the government building a bridge affects mitchell quitting his job to go back to school affects an increase in french wine imports is an inflow of foreign capital. a family cutting down on expenses affects private domestic savings.
private domestic savings, private domestic investment, an inflow of foreign capital, private domestic investment, government budget deficit, private domestic savings, an inflow of foreign capital and private domestic savings.
A worker's contribution to a retirement fund is private domestic savings.
A farmer buying a new tractor is private domestic investment.
A decrease in automobile exports is an inflow of foreign capital.
A domestic company building a factory is private domestic investment.
The government building a bridge affects government budget deficit.
Mitchell quitting his job to go back to school affects private domestic savings.
An increase in French wine imports is an inflow of foreign capital.
A family cutting down on expenses affects private domestic savings.
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the cpi is based on the basket of goods and services purchased by consumers in cities multiple choice question. of at least 250,000 people. of at least 1,000,000 people. of 2500 people or fewer. of 2500 people or more.
The change in the prices of a basket of goods and services that are frequently bought by particular groups of households is referred to as inflation and is monitored by the consumer price index (CPI). Inflation is calculated using the index with 2015 as the base year and is broken down into three categories: total, food, and energy, and total excluding food and energy. The degradation of living standards is quantified by inflation.
A consumer price index is calculated as a set of summary measures of the proportional change in prices from one period to the next for a fixed set of consumer products and services that the reference population purchases, uses, or pays for. Each summary measure is created by averaging a large number of elementary aggregate indices using a weighted formula.
Each of the basic aggregate indices is calculated using a sample of prices for a predetermined group of goods and services purchased in or used by residents of a certain area from a predetermined group of retailers or other sources.
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Which of the following stages of the product life cycle is likely to utilize reminder advertising for marketing communications as profit margins narrow?
a. Maturity stage
b. Decline stage
c. Introduction stage
d. Cannibalization stage
e. Growth stage
The maturity stage of the product life cycle is likely to utilize reminder advertising for marketing communications as profit margins narrow.
The maturity level takes place after the advent and boom ranges. The maturity level is the longest degree of the product existence cycle. on this level, income increase begins to say no; the organization reaches the best point inside the call for the cycle; and advertising strategies have minimum effect on income growth.
The growth and maturity stages of a product life cycle are:-
retaining product first-rate and including features or assist offerings for the product.retaining pricing to increase demand for the product.increasing distribution channels to address demand.aiming promotion at a much wider target audience.A maturity degree is when a product has been set up inside the marketplace in the p.c. adulthood degree of a product is stated to be attained whilst the product has reached its top in income and the extent income boom tends to stagnate.
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Of all things that you can show an investor, what is typically the most important item that will convince them to invest in your startup company?.
Of all things that you can show an investor, return is typically the most important item that will convince them to invest in your startup company.
An investor is one the one assigns economic capital accompanying the expectation of a future return or to gain a benefit. Through this assigned capital most of the moment of truth the financier purchases a few classes of features.
There are three types of investors: pre-financier, inactive financier, and active financier. Each level builds on the abilities of the former level beneath it. Startups are companies or ventures that are concentrated on an alone crop or aid that the founders be going to revive or advertise. These guests typically forbiddance have a mature trade model and, more critically, lack enough capital to move upon the next chapter of trade.
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What approach do businesses use to examine the whole chain of activities that contributes to the production of their product?.
An in-depth examination of every step a company takes, from acquiring materials to producing, distributing, and selling its goods or services, is known as a value chain analysis. This analysis provides business owners and managers with in-depth understanding of their company's major cost and profit centers.
What are the two methods for analyzing the value chain?
The value chain analysis can be done in two ways: Strategic Management Insight says that cost and differentiation advantage are advantages.
What exactly is a value chain strategy?
The various business activities and procedures involved in the production of a product, or the provision of a service are referred to as the "value chain."Multiple phases of a product or service's lifecycle—from research and development to sales and everything in between—can be included in a value chain.
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if a neoclassical model shows increasing wages in the economy over the long run, what else will likely occur? substantial short-term off-setting decrease in output short-run decrease in cyclical unemployment inflationary increase in price level change in government policy to decrease in aggregate demand
Inflation causes a country's currency to decrease its value. This results in the value of the products and services being constantly increasing.
What steps can the government take to lower total demand?Regardless of tax policy, aggregate demand declines as government spending does, moving the economy to the left. NX is the fourth term that will cause the aggregate demand curve to change (e). This phrase indicates that net exports, which are calculated as exports minus imports, depend on the real exchange rate. Fiscal policy is one way that policymakers can affect the overall demand. The aggregate-demand curve moves to the right in response to an increase in government spending or a decrease in taxation. The aggregate-demand curve moves to the left in response to a reduction in government spending or an increase in taxes. First, if government spending rises but taxes stay the same, demand rises directly. Second, if tax rates are lowered or transfer payments are raised,
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costs that do not change in total over wide ranges of volume. 2. technique that estimates profit or loss results when conditions change. 3. the sales level at which operating income is zero. 4. drop in sales a company can absorb without incurring an operating loss. 5. combination of products that make up total sales.
Match the terms with the correct definition.
1. Fixed costs: Expenses that remain the same overall across a wide range of volume.
2. Sensitivity analysis: A method for forecasting profit or loss when circumstances change.
3.Breakeven point:The sales level at which operational income is zero.
4. Margin of safety: The amount of a sales decline that a business can take without suffering an operating loss.
5. Sales mix: The assortment of products that contribute to total sales.
6. Contribution margin is the sum of net sales income and variable expenses.
7. Cost behavior: Explains how costs alter as volumes alter.
8. Variable costs: Expenses whose aggregate changes directly in relation to variations in volume.
9. The volume range that keeps both the total fixed costs and the variable cost per unit constant.
Each term must be paired with its corresponding accurate definition. The phrases are frequently used in relation to sales management and business.
For instance, fixed costs include indirect expenses like as rent, salaries, property taxes, insurance, depreciation, and more that remain constant overall over a wide range of volume and regardless of the degree of output (goods and services).
Additionally, variable costs include expenses such as sales commission, electricity costs, raw material costs, credit card fees, direct labour costs, etc. that alter overall in direct proportion to changes in the volume of goods and services.
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what is the first issue that needs to be addressed in order to properly report tangible and intangible assets?
The first issue that needs to be addressed in order to properly report tangible and intangible assets is "Determining the amounts to be included in the assets initial cost."
An intangible is an asset that is not physical in nature. Goodwill, brand recognition and property , like patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist con to tangible assets, which include land, vehicles, equipment, and inventory.
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in thinking about how the pandemic of 2020 impacted markets, which of the following are examples of price discrimination? which are not?
The following are examples of price discrimination:
Charging a cheaper price for bulk purchases of tissue paper.
Offering seniors a discount
Selling nose masks at different prices.
The following are not examples of price discrimination:
Having senior hours.
What is price discrimination?
Price discrimination is when the same product is sold at different prices to different groups of customers.
First degree price discrimination is a type of discrimination where the sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
Second degree price discrimination is a type of price discrimination where firms offer different prices depending on the quantity purchased. e.g. selling tissue papers bought in bulk for cheaper.
Third degree price discrimination is a type of discrimination where a business charges different prices to different groups of customers. e.g. Selling nose masks at different prices to different groups of consumers.
Here are the options:
Stores across the United States created “Seniors Hours” during the pandemic, limiting access to stores during certain times to consumers over 60 or with health concerns.
Vera Bradley, a popular woman's retailer, sells two versions of face masks. It costs the firm the same amount of money to produce each mask. However, it sells the mask made of recycled material to customers who identify as eco-friendly for a higher price. It sells the other nonrecycled-material mask to price-sensitive customers.
Toilet paper quickly became a hot commodity during the pandemic, with retailers charging less per unit for packs of toilet paper than they charged for just single rolls.
During the pandemic, restaurants continued to offer discounted Early Bird specials to seniors.
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If the nominal wage is $30 in 2011 and the CPI is 202 in 2011, then the real wage in 1982-1984 dollars
A) is $29.00.
B) is $1.48.
C) is $14.85.
D) is $30.
E) cannot be calculated without the past year wage rate.
The real wage will be $14.85, considering the value of nominal wage and consumer price index in 2011. Hence, correct option is (c).
Given information:
Nominal wage in $2011 = $30
Consumer Price Index (CPI) = 202
Real wage = Nominal wage/ CPI *100 =
Real wage = 30/202*100 = $14.85
The Consumer Price Index (CPI) tracks changes in consumer prices on a monthly basis in the United States. The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted sum of pricing for a range of goods and services that is indicative of total consumer expenditure in the United States.
One of the most widely used indicators of inflation and deflation is the Consumer price index. In contrast to the price index (PPI), which tracks shifts in the prices paid to American manufacturers of goods and services, the CPI report employs a different questionnaire technique, pricing samples, and indexing weights.
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fink insurance collected premiums of $17,400,000 from its customers during the current year. the adjusted balance in the deferred premiums revenue account increased from $6.0 million to $8.6 million dollars during the year. what is fink's revenue from insurance premiums recognized for the current year?
A contract for insurance protects specific future risks and losses between the insurance company and an individual or group of individuals.In exchange for protection, the client will have to make deferred payments.
Collections of cash: $17,200,000
In accounting, how is insurance accounted for?
Toward the finish of any bookkeeping period, how much the insurance payments that stay paid ahead of time ought to be accounted for in the ongoing resource account, Prepaid Protection.After inventory, the prepaid amount will be shown on the balance sheet and may be included in an item called prepaid expenses.
An essential protection diary section is Charge:Credit for Insurance Expense:Bank account for insurance payments for business insurance.Business expenses are not all deductible* for insurance premium payments.Some protection installments can happen to the Benefit and Misfortune Report and some should go on the Monetary record.
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Question: at a level of 20,000 units sold, gail corp. Has sales of $400,000, a contribution margin ratio of 40%, and a profit of $40,000. What is the break-even point in units? multiple choice 12 000 8. 000 20,000 15. 000 1
15,000 units is the break-even point. In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
How to calculate break-even point ?In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or even. Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has broken even.
Total cost = variable cost x number of units + total fixed cost (TC = VC*X + FC). This is also known as the cost function.
At break-even point, TR = TC.
One of the most widely used financial analysis concepts is the break-even point, which is not just useful for economists but can also be used by business owners, accountants, financial planners, managers, and even marketers.
Fixed costs are ($400,000 × 40%) - $40,000 = $120,000.
Break-even point is $120,000/0.40 = $300,000 in sales,
and $300,000/$20 = 15,000 in units.
The break-even point is 15,000 units
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kenji owns and operates a hot dog stand in downtown new york city. in order to operate his hot dog stand, regardless of the number of hot dogs sold, kenji must purchase a permit from the local government in new york city. kenji's initial profit hill is plotted in green (triangle symbols) on the following graph. suppose the price kenji must pay for a permit decreases by $50 per day. on the following graph, use the purple diamond symbols to plot kenji's new profit hill, for 0, 10, 20, 30, 40, 50, 60, and 70 hot dogs, after the decrease in the price of a permit (with all other factors remaining constant).
After the price of permit rises, profit-maximising level of output is 40 hot dogs per day due to same reason, at this quantity total profit is highest.
Moreover, Kenji initially faces a fixed cost of $50. Since at the 0 quantity of hot dogs there is negative profit of $50 which is fixed cost only.
Initially, kenji's profit-maximising level of output is 40 hot dogs per day. Because this the quantity level at which total profit is highest.
So thats why After the price of permit rises, profit-maximising level of output is 40 hot dogs per day due to same reason, at this quantity total profit is highest.
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allowance for doubtful accounts is a(n) -asset account and has a normal balance. (enter only one word per blank.)
Answer:
Contra
Credit
Explanation:
Allowance for doubtful accounts is a Contra - asset account and has a normal credit balance
4.according to standish, more than 50% of all it projects experience cost overruns of 51% or more true or false
Underestimation is the primary cause of project failure - True. Cost estimators underestimate cost while budgeting, planners underestimate time required.
Learning is linear - False
Learning can linear and non - linear learning. Though linear leaning does not exist in nature.
Cutting costs is important and should be a perpetual effort- True
Profit generated by cutting cost can be used by the organization in various other fields
“Rough order of magnitude” estimates are most often associated with Parametric cost estimating- True
A Rough Order of Magnitude Estimate is an estimation of Projects estimates and cost to complete the project.
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Years ago mcdonald's switched from styrofoam boxes for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that styrofoam took too long to decompose in landfills. In this situation, mcdonald's was ________.
Concerned that Styrofoam would take too long to decompose in landfills, McDonald's made the switch from Styrofoam to partially recycled corrugated boxes for its large sandwiches many years ago. McDonald's was socially responsive in this circumstance.
What distinguishes social responsiveness from social responsibility?
The fundamental contrast between friendly obligation and social responsiveness is that social obligation is the moral/ethical constraint/obligation of an individual or an element towards the general public while social responsiveness is how an individual or a substance answers a social need.
What examples of social responsibility do you have?
volunteering, donating blood, and working at a food bank or animal shelter are all examples of community service. advocating for political or social issues that can assist others, such as child labor laws, fair trade products, and recycling, are examples of issues that affect society.
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other things the same, a higher interest rate induces people toa. invest more, so the supply of loanable funds slopes upward.b. save less, so the supply of loanable funds slopes downward.c. invest less, so the supply of loanable funds slopes downward.d. save more, so the supply of loanable funds slopes upward.
Other things the same, a higher interest rate induces people to invest more, so the supply of loanable funds slopes upward.
The cost of borrowing money goes up when interest rates rise, while the yield on savings goes up. Due to this, firms and individuals postpone purchases and take out less credit. In turn, the economy experiences less money flow and lower inflation.
Hence the correct option is A
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mohr company purchases a machine at the beginning of the year at a cost of $42,000. the machine is depreciated using the units-of-production method. the company estimates it will use the machine for 5 years, during which time it anticipates producing 55,000 units. the machine is estimated to have a $9,000 salvage value. the company produces 10,600 units in year 1 and 7,600 units in year 2. depreciation expense in year 2 is: multiple choice $4,560. $25,200. $6,600. $16,800. $9,000.
The time period depreciation refers to an accounting technique used to allocate the value of a tangible or physical asset over its beneficial life.
The required details for depreciation in given paragraph
Depreciation base = Cost of machine - Salvage cost = 24000-4000 = $20,000
Yearly depreciation fee = Depreciation value/ Life = 20,000/5 = $4,000
Straight line charge of depreciation = 4,000/20,000 = 0.2 = 20%
Double-declining-stability technique charge = 20*2 = 40% = 0.4
Year 1 depreciation fee = 24000*0.4 = $9,600
Year 2 depreciation fee = (24000-9600)*0.4 = $5,760
Therefore, depreciation fee for yr 2 is $5,760.
Depreciation represents how a good deal of an asset's cost has been used. It lets in businesses to earn sales from the property they personal through buying them over a positive duration of time. Because businesses do not should account for them completely within side the yr the property are purchased, the instant value of possession is considerably reduced. Not accounting for depreciation can significantly have an effect on a company's profits.
Depreciation may be as compared with amortization, which bills for the ex-trade in cost over the years of intangible property.
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in what stage of the consumer decision-making process would a consumer consult his or her evaluative criteria?
In the stage of Evaluating alternatives, the consumer decision-making process would a consumer consults his or her evaluative criteria.
The third step in the process of consumer buying decisions is the evaluation of alternatives. Consumers assess all of their brand and product alternatives at this stage based on a scale of characteristics that have the potential to provide the advantage the customer is looking for. Customers frequently use their evoke, inept, and insert sets to help them make decisions throughout the examination of options.
The "evoked set"—the brands and goods they contrast—represents the options they are taking into account while addressing an issue. A variety of innovative management or policy approaches aimed at achieving the goals are produced. Alternatives should represent fundamentally different ways of approaching the issue or distinct priorities among the objectives.
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when a company has market power, it is in its market. not a price-taker not able to impact the market equilibrium price a producer of nondifferentiated products one of many small companies
The customer is not a price taker when a corporation has market power since it can control the price in the market and charge any price to the customer in accordance with its objectives for profit targets.
A price-taker is a person or business that must accept market pricing as they are because they lack the market share to do so on their own. In a market with perfect competition, or one where every business sells the same good, there are no barriers to entry or departure, every business has a modest market share, and every customer has complete knowledge of the market, all economic actors are regarded as price takers. Buyers and sellers in the debt and equity markets, as well as producers and consumers of products and services, can all attest to this. But just because someone is a market maker doesn't give them the right to establish any price they like.
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annie and sam were married for 20 years when annie met and fell madly in love with armando. annie is currently in the process of divorcing sam so that she can quickly marry her new love. which of the following is not proper advice for annie? annie and sam were married for 20 years when annie met and fell madly in love with armando. annie is currently in the process of divorcing sam so that she can quickly marry her new love. which of the following is not proper advice for annie? annie should make an effort to discover forgotten or hidden assets prior to the finalization of the divorce annie should follow through on paperwork to change the titling of assets prior to the financial settlement. annie should create a letter of intent identifying all of the important information that armando should know about her before beginning their future together. annie should change the beneficiary designations on her qualified retirement accounts and iras
Annie should create a letter of intent identifying all of the important information that Armando should know about her before beginning their future together.
The future is the time after the past and gift. Its arrival is considered inevitable because of the life of time and the laws of physics. Due to the apparent nature of fact and the unavoidability of the future, the whole lot that presently exists and could exist may be labeled as either permanent, meaning that it'll exist for all time, or temporary, that means that it will give up.[1] in the Occidental view, which uses a linear conception of time, the destiny is the part of the projected timeline that is expected to occur.[2] In unique relativity, the destiny is taken into consideration absolute destiny, or the destiny mild cone.[3]
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a company sells a plant asset that originally cost $225,000 for $75,000 on december 31, 2014. the accumulated depreciation account had a balance of $90,000 after the current year's depreciation of $22,500 had been recorded. the company should recognize a
Based on the data above, the company should loss $60,000 on disposal. It can be calculated by subtract the original cost with asset's initial cost and also accumulated depreciation.
The disposal of a fixed asset can effect to the loss if the trade-in or also the cash allowance received is less than the book value of the asset. If a fixed asset that nothing is received in return and still has book value is discarded , the company also experiences a loss.
The calculation:
The disposal = original cost - ( asset's initial cost - accumulated depreciation)
The disposal = $75,000 - ($225,000 - $90,000)
The disposal = $60,000
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the production cost report presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending work in process inventory. True/False?
The production cost report presents calculations of the cost of units completed during the reporting period but does not present any information about the ending work in process inventory.
Process costing is a costing approach or an operational sort of costing in which a manufacturer tracks the fee of manufacturing a series of non-stop or repetitive approaches required to provide a product.
The cost of finished goods includes all prices along the manner and includes the three fundamental additives that move into the manufacturing of goods -- direct hard work, direct substances, and overhead. similarly, whilst finished items are maintained in inventory, a firm will incur carrying charges.
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for some time, sylvester has had $5 per month to spend on oranges and apples. the price of an orange is $0.50 and the price of an apple is $0.25. which chart(s) show(s) what happens to his budget line if his income increases to $6?
When revenue increases, the budget line is expanded. Sylvester can buy 24 apples and 12 Oranges when his income is $6.
All the combinations of goods and services that a consumer may buy at current prices within the range of his or her available income are represented by a budget constraint. The notions of a preference map and a budget restriction are used by consumer theory to investigate the criteria for customer decisions.
The budget line moves outward, parallel to the initial line, as revenue rises (holding prices constant). This implies that a consumer who has more money can purchase more of both products.
An expansion of the budget line happens when revenue rises. When his income reaches $6,
Sylvester can afford = Increased Income / Price of 1 apple
Affordable Apple = $6 / $0.25 = 24 apples
Therefore, if his income reaches $6, Sylvester can afford 24 apples.
Similarly, we can compute for Oranges:
Sylvester can afford = Increased Income / Price of 1 orange
Affordable Oranges = $6 / $0.50 = 12 Oranges
Therefore, if his income reaches $6, Sylvester can afford 12 Oranges
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the federal reserve, the securities and exchange commission, and the national labor relations board are all examples of
The federal reserve and the securities and exchange commission are all examples of independent regulatory agencies
The task of developing rules and regulations within a particular policy area is carried out by an independent regulatory agency that is separate from a significant cabinet department. Federal organizations that have been established by Congress with a specific degree of independence from the President are referred to as independent regulatory agencies.
The most significant characteristic of independent agencies is that they are held individually, in accordance with full legal requirements, from other parts of the United States federal government and funded by open-door corporations or private contributors. The Federal Reserve, the Securities and Exchange Commission, the Nuclear Regulatory Commission, the National Labor Relations Board, etc. are a few such examples.
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understand the different types of modifications that companies can use to increase demand for their products (product, quality, functional, aesthetic).
The product's packaging is altered as part of this strategy. These enhancements may be required as a result of new packaging methods being developed or a flaw in the product's current packaging; or as a result of customer suggestions for changes.
What are the four kinds of product changes?
Line Augmentations.Changes to the product.Changes to the qualityModifications to the function.Changes to the appearanceWhat exactly are product alterations?
any significant alteration in the attributes (size, form, color, style, cost, etc.)of an item; Most of the time, a product is changed to try to make it better and get more people to buy it.
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the stock of red's hardware closed at $57.10 per share today. tomorrow morning, the stock goes ex-dividend, paying a dividend of $1.70 per share. the tax rate on dividends is 25 percent. all else the same, what price will the stock open at tomorrow morning?
The stock open at tomorrow morning is: Ex-dividend price equal to $55.83
What is Ex-dividend price?A stock is referred to as being ex-dividend if it no longer carries the value of the upcoming dividend payment. The day the stock begins trading without the value of its upcoming dividend payment is known as the ex-dividend date or "ex-date."Dividend after taxes equals $1.70 (1 .25)
Dividend after taxes is $1.28.
$57.10 x 1.28 is the ex-dividend price.
$55.83 is the ex-dividend price.
The share price often declines by the dividend amount paid when a company goes ex-dividend to reflect the fact that new shareholders are not eligible for that payment. Earnings can be diluted when dividends are distributed as stock rather than cash, which may also have a short-term negative effect on share values.To learn more about Ex-dividend price refer to:
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the constant growth dividend model would be useful to determine the value of all, but which of the following firms? a firm whose earnings and dividends are growing at a fairly steady rate a firm whose earnings and dividends are declining at a fairly steady rate a firm whose expected sales, profits, and dividends are fluctuating a firm whose sales, profits, and dividends are growing at annual average compound rate of 5 percent
The correct option is "a firm whose expected sales, profits, and dividends are fluctuating" for the constant growth model of dividend.
Define the term constant growth model of dividend?A Constant Growth Model is a method of assessing shares. It also goes by the name Gordon Growth Model and is based on the idea that a company's dividend payments will always increase at a fixed pace.
It aids investors in estimating the current reasonable amount to pay for such a stock in light of potential dividend payments.With a method that takes into account that the consistently rising dividend payout is important for the stock's value, one may determine the fair value of each share for a corporation that pays out a rising dividend. The minimum return on investment that investors will tolerate in order to keep the stock is known as the Required Rate of Return (RRR). In rare instances, the market assessments for a stock's fair value could differ from the counts calculated through using Gordon Growth Model. This does not imply that the equation is flawed. In actuality, it indicates that the dividend stream's forecast was incorrect.Thus, for the following corporations, except one whose anticipated sales, profitability, and dividends are volatile, may be valued to use the constant growth dividend model.
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A policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan?
a. full face amount
b. face amount minus the past-due premium
c. face amount minus the loan balance
d. face amount minus the loan balance and past-due premium
A policy owner fell behind on the premium payments of a whole life policy and is now in the grace period. d. face amount minus the loan balance and past-due premium.
Policy is a deliberate device of guidelines to guide choices and attain rational effects. A policy is a announcement of intent and is implemented as a system or protocol. guidelines are commonly followed by means of a governance frame inside an business enterprise.
A set of thoughts or a plan of what to do particularly conditions that has been agreed to officially by using a group of human beings, a commercial enterprise employer, a government, or a political party: They believe that Europe wishes a commonplace foreign and safety coverage.
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if $400 is invested at an interest rate of 3.5% per year, find the amount of the investment at the end of 13 years for the following compounding methods. (round your answers to the nearest cent.) (a) annually $ (b) semiannually $ (c) quarterly $ (d) continuously
The amount of the investment at the end of 13 years for the following compounding methods is: (a) annually $470.85 (b) semiannually $627.99 (c) quarterly $629.22 (d) continuously $630.46.
How to find the compound interest?Using this formula
A = P (1+r/n)^nt
Where:
P= initial amount.
r =rate of interest in decimal.
t =time in years
a. Annually
A = $400 ( 1+ 0.035/12)^ 12× 13
A = $400 ( 1+.035/12)^ 56
A = $470.85
b. Semiannually
A = $400 ( 1+ 0.035/2)^ 2× 13
A = $400 ( 1+.035/2)^ 26
A = $627.99
c. Quarterly
A = $400 ( 1+ 0.035/4)^ 4× 13
A = $400 ( 1+.035/4)^ 52
A = $629.22
d. Continuously
A =Pe^rt
A = $400e^(0.035 × 13)
A = $400e^0.455
A= $630.46
Therefore annual amount is $470.85.
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