Airline A’s demand curve is P(Q) = 120 – 0.2Q where Q stands for the airline’s output in number of seats. Assume all flights will be fully loaded. When a uniform price is charged, the marginal revenue will be MR(Q) = 120-0.4Q. The marginal cost of operating flights in the market is MC(Q) = 0.6Q and the total cost is C(Q) = 3000 + 0.3Q2.
(a) How much is the profit-maximizing output level? How much is the maximum profit that Airline A can earn?
(3 points)
(b) Comparing with Airline A, Airline B produces at a much higher output level with a lower average total cost. Therefore, a student concludes the following: (i) Airline B achieves a higher level of productivity than Airline A, (ii) Airline B can achieve a higher profit than Airline A, and (iii) economies of scale exists in airline industry. Do you agree with the above conclusions? Why?(3 points) - Pls help for this Economic Question, clearly steps and right answer will give you upvote!-

Answers

Answer 1

Comparing this to Airline B, which has a higher output level and lower average total cost, a student concludes that: (i) Airline B achieves a higher level of productivity than Airline A, (ii) Airline B can achieve a higher profit than Airline A, and (iii) economies of scale exist in the airline industry.

I agree with these conclusions because:

(i) Higher output level at a lower average total cost indicates that Airline B can produce more seats per unit of input, making it more productive than Airline A.

(ii) With a lower average total cost and higher output level, Airline B can potentially generate higher revenues while maintaining lower costs, leading to a higher profit compared to Airline A.

(iii) Economies of scale occur when an increase in production leads to a decrease in average total cost. Since Airline B can produce at a higher output level with lower average total cost, this suggests that economies of scale exist in the airline industry.

Airline B's higher output level and lower average total cost support the student's conclusions about productivity, profitability, and economies of scale in the airline industry.

Know more about airline industry here:

https://brainly.com/question/30564590

#SPJ11


Related Questions

___________ occurs when a supervisor earns less than his or her subordinates
a) Role conflict
b) Role ambiguity
c) status incongruence
d) informal status

Answers

The "status incongruence" occurs when a supervisor earns less than his or her subordinates. The correct option is C.

Status incongruence is a term used to describe a situation where an individual's position or rank within a social hierarchy is incongruent or inconsistent with their income, power or prestige.

In the workplace, the supervisor earns less than subordinates, that can lead to low job satisfaction, low morale, and decreased productivity. There are several supervisor role like counselor, director, and sponsor.

Therefore, the correct option is C, which is status incongruence.

To know more about status incongruence here,

https://brainly.com/question/25623377

#SPJ4

. Based on the course material and recommended text,
explain the difference between each of the following
terms.
Assets and liabilities:
Book value and market value:
Current assets, fixed assets, and

Answers

Assets are economic resources that an individual, company or organization owns that have the potential to generate future economic benefits. Examples of assets include cash, investments, property, and equipment.

Liabilities are obligations that an individual, company or organization owes to others and must be fulfilled in the future. Examples of liabilities include bank loans, accounts payable, and bonds.

Book value is the value of an asset or liability as reported on a company's financial statements. It is calculated based on historical cost or acquisition cost of an asset or liability, adjusted for depreciation or amortization.

Market value, on the other hand, is the current value of an asset or liability in the market, based on the supply and demand of buyers and sellers. It can fluctuate frequently based on various market conditions such as interest rates, economic conditions, and investor sentiment.

Current assets are assets that can be easily converted into cash within one year, including cash, marketable securities, accounts receivable, and inventory. Fixed assets are long-term assets that are not expected to be converted into cash within one year, including property, plant, and equipment.

Learn more about economic resources,

https://brainly.com/question/1503203

#SPJ4

the future value of an ordinary annuity table is used when calculating multiple choice question. the present value of a series of payments. the present value of a single amount. the future value of a series of payments.

Answers

The future value of an ordinary annuity table is a tool used to calculate the future value of a series of payments made at the end of each period over a certain number of periods.

This table helps individuals determine the amount they will have in the future based on their current investment or savings plan. By using the table, investors can estimate the value of their investment at the end of the investment period, assuming they make regular, equal payments.

The table is also useful in calculating the present value of a series of payments. By taking the future value of these payments and discounting it back to the present, individuals can determine the amount they would need to invest today to achieve their desired future value. This is known as the present value of an ordinary annuity.

The present value of a single amount is also important to consider when investing. This refers to the value of a lump sum payment today that will grow over time, assuming a certain rate of return. By understanding the present value of a single amount, investors can better determine how much they need to invest to reach their financial goals.

In summary, the future value of an ordinary annuity table is a valuable tool for investors to determine the future value of their investments and savings plans. It can also be used to calculate the present value of a series of payments and a single lump sum payment.

Learn more about ordinary annuity table here: https://brainly.com/question/30210003

#SPJ11

In many nonindustrial societies, adolescence is considered to be either nonexistent or NON existant or growth leading too Sexual maturityq (true or false)

Answers

False. In many nonindustrial societies, adolescence is considered to be a distinct period of life, characterized by physical, cognitive, and social changes, although the concept and experience of adolescence may differ from that of industrial societies.

In many nonindustrial societies, adolescence is seen as a transitional period between childhood and adulthood, marked by physical changes such as growth spurts and the onset of puberty, as well as social and cultural changes such as increased responsibilities, initiation rites, and gender roles.

However, the experience of adolescence may vary greatly across different nonindustrial societies, depending on factors such as cultural values, economic conditions, and religious beliefs. For example, some societies may emphasize the importance of marriage and childbearing for adolescent girls, while others may encourage exploration and experimentation before settling into adult roles.

Overall, while the concept of adolescence may not be universal or static, it remains an important period of development and transition in many nonindustrial societies.

learn more about adolescence here:

https://brainly.com/question/12945498

#SPJ11

when preparing the balance sheet for papago company for december 31, 2021, which item would not be classified as a current liability? multiple choice note payable due march 1, 2023 accounts payable income taxes due on september 15, 2022 the current portion of a 30-year mortgage

Answers

In the given options, the item that would not be classified as a current liability is the current portion of a 30-year mortgage

The current portion of a 30-year mortgage would not be classified as a current liability.

Current liabilities are those obligations that are due within one year or the company's operating cycle, whichever is longer. Examples of current liabilities include accounts payable, notes payable due within one year, and income taxes payable.

The current portion of a long-term liability, such as a 30-year mortgage, represents the portion of the principal that is due within the next 12 months. This amount is classified as a current liability on the balance sheet. However, the remaining portion of the mortgage, which is not due within the next 12 months, would be classified as a long-term liability.

To learn more about   mortgage.. here

https://brainly.com/question/1318711

#SPJ4

Discuss about how improving the fund raising measures at a
future non-profit.

Answers

There are various strategies for improving fund raising measures at a future non-profit, such as diversifying the donor base, expanding the scope of fundraising activities, and improving donor engagement.

One effective approach is to diversify the donor base by targeting individuals, foundations, corporations, and government agencies that are interested in supporting the non-profit's mission. This can be done through networking, outreach, and marketing campaigns that highlight the organization's impact and accomplishments.

Expanding the scope of fundraising activities can also help to increase donations. This can include hosting events, creating online campaigns, or partnering with other organizations to raise awareness and funds for the non-profit's cause.

In addition, improving donor engagement is critical for building long-term relationships and securing recurring donations. This can be achieved by creating personalized communication and marketing strategies that demonstrate the impact of donations and offer opportunities for involvement and feedback.

Ultimately, improving fund raising measures at a future non-profit requires a strategic and integrated approach that prioritizes relationship-building, donor engagement, and diversification of funding sources. By implementing these strategies, the non-profit can increase its financial stability and make a greater impact on its mission.

To know more about fund raising refer here:

https://brainly.com/question/1337637#

#SPJ11

the degree to which people believe a person has their best interests in mind is known as:

Answers

The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness.

People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.

Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

Learn more about benevolence:

https://brainly.com/question/31365577

#SPJ4

The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness. People's perceptions of someone's goodness.

or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived benevolence trustworthiness. People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.  concerned about their welfare. Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

Learn more about benevolence here:

brainly.com/question/31365577

#SPJ11

the span at which the cost behaviors are expected to hold true is called: multiple choice variable costing full absorption costing relevant range relevant period

Answers

The span at which the cost behaviors are expected to hold true is called the relevant range.

It refers to the range of activity within which assumptions about cost behavior are valid. The relevant range is important because costs can behave differently at different levels of activity. For example, fixed costs remain constant within the relevant range but can increase or decrease outside of it.

Understanding the relevant range is critical in making decisions that affect costs and revenues, such as setting prices, determining production levels, and analyzing cost-volume-profit relationships. It is also important in managerial accounting, where cost behavior is analyzed to understand the cost structure of a company and to make decisions related to budgeting and forecasting.

Learn more about the relevant range.

https://brainly.com/question/13296648

#SPJ4

Full Question : the span at which the cost behaviors are expected to hold true is called: multiple choice

variable costing full absorption costing relevant range relevant period

which of the following is a political risk faced by organizations such as fifa that operate in multiple countries? group of answer choices a. challenges implementing the world trade organization agreements b. uncertain prices for critical commodities c. potential nationalization of invested assets d. failure of countries to pay debt obligations

Answers

The correct answer to your question is: c. potential nationalization of invested assets. This is a political risk faced by organizations like FIFA that operate in multiple countries, as it involves the possibility of a government taking control of their assets within that country .

The political risk faced by organizations such as FIFA that operate in multiple countries is the potential nationalization of invested assets. Nationalization refers to the process in which a government takes over private assets and makes them publicly owned. This can happen when a government feels that foreign investments are threatening their national security or when they want to take control of a strategic industry. Nationalization can lead to significant financial losses for organizations operating in multiple countries as they may lose their assets and investments in the affected countries.

Learn More about nationalization  here :-

https://brainly.com/question/30586880

#SPJ11

The Z score is 1.7. The values of X1, X2, X3, X4 and X5 are respectively .1, .3, .25, .2 and you have to compute the last one.
Explicate the meaning of the different determinants of the Z score.
Will this company default? A yes or no answer does not suffice.

Answers

The Z-score is a financial ratio that is used to assess the creditworthiness or financial health of a company. It is typically used to predict the likelihood of a company defaulting on its debt obligations.

How to calculate Z-score?

The Z-score is calculated using various financial ratios and measures, and the determinants of the Z-score are as follows:

X1 - Working Capital/Total Assets: This ratio measures the proportion of a company's total assets that are financed by its working capital (current assets minus current liabilities). A higher value of X1 indicates a higher proportion of working capital to total assets, which is generally considered favorable as it indicates a company's ability to cover short-term obligations.

X2 - Retained Earnings/Total Assets: This ratio measures the proportion of a company's total assets that are financed by its retained earnings (profits reinvested into the business). A higher value of X2 indicates a higher proportion of retained earnings to total assets, which is generally considered favorable as it indicates a company's ability to generate profits and reinvest in the business.

X3 - Earnings Before Interest and Taxes (EBIT)/Total Assets: This ratio measures the proportion of a company's total assets that are generated from its operating earnings before interest and taxes. A higher value of X3 indicates a higher proportion of operating earnings to total assets, which is generally considered favorable as it indicates a company's profitability.

X4 - Market Value of Equity/Total Liabilities: This ratio measures the proportion of a company's total liabilities that are covered by its market value of equity (market capitalization). A higher value of X4 indicates a higher proportion of equity to total liabilities, which is generally considered favorable as it indicates a company's ability to cover its liabilities using its market value of equity.

X5 - Sales/Total Assets: This ratio measures the proportion of a company's total assets that are generated from its sales.

To compute the last value, we need to use the formula for calculating a Z-score:

Z = (X - mean) / standard deviation

We know that the Z-score is 1.7, so we can plug in the values we have and solve for X:

1.7 = (X - 0.21) / 0.08

Multiplying both sides by 0.08 gives:

0.136 = X - 0.21

Adding 0.21 to both sides gives:

X = 0.346

Therefore, the last value, X5, is 0.346.

Now, regarding the question of whether the company will default or not, a yes or no answer does not suffice as the Z score alone is not conclusive. Typically, a Z score value below a certain threshold (usually below 1.8) is considered indicative of a higher risk of default, while a value above the threshold suggests a lower risk of default. However, it's important to consider other factors such as industry norms, economic conditions, and specific circumstances of the company in question before making any definitive conclusions. It's recommended to use the Z score as a tool for initial assessment, but further analysis and evaluation are needed to determine the likelihood of default for a company accurately. Consulting with a financial expert or conducting a comprehensive financial analysis would be advisable in making a well-informed decision.

To know more about default risk visit:

https://brainly.com/question/30885412

#SPJ11

calgary industries is preparing a budgeted income statement. predicted sales for the year are $745,000 and cost of goods sold is 40% of sales. the expected selling expenses are $82,500 and the expected general and administrative expenses are $91,500, which includes $24,500 of depreciation. the company's income tax rate is 30%. budgeted net income is:

Answers

The budgeted net income for Calgary Industries is $191,100.

To calculate the budgeted net income for Calgary Industries, we can follow these steps:

Calculate the cost of goods sold (COGS) using the given information that COGS is 40% of sales:

COGS = 40% of $745,000 = $298,000

Calculate the total operating expenses, which is the sum of selling expenses and general and administrative expenses (excluding depreciation):

Total Operating Expenses = Selling Expenses + General and Administrative Expenses (excluding depreciation)

Total Operating Expenses = $82,500 + $91,500 - $24,500 = $149,500

Calculate the operating income, which is the difference between sales and COGS and total operating expenses:

Operating Income = Sales - COGS - Total Operating Expenses

Operating Income = $745,000 - $298,000 - $149,500 = $297,500

Calculate the income before taxes, by subtracting the operating income from depreciation:

Income Before Taxes = Operating Income - Depreciation

Income Before Taxes = $297,500 - $24,500 = $273,000

Calculate the income tax expense, using the given income tax rate of 30%:

Income Tax Expense = Income Before Taxes * Income Tax Rate

Income Tax Expense = $273,000 * 0.30 = $81,900

Calculate the budgeted net income, which is the income before taxes minus the income tax expense:

Budgeted Net Income = Income Before Taxes - Income Tax Expense

Budgeted Net Income = $273,000 - $81,900 = $191,100

So, the budgeted net income for Calgary Industries is $191,100.

To know more about budget visit:

https://brainly.com/question/12941169

#SPJ11

A firm is contemplating shortening its credit period from 45 to 35 days and believes​ that, as a result of this​ change, its average collection period will decline from 50 to 43 days. ​ Bad-debt expenses are expected to decrease from 1.4% to 1.1% of sales. The firm is currently selling 11,500 units but believes that as a result of the proposed​ change, sales will decline to 9,500 units. The sale price per unit is $56​, and the variable cost per unit is $43. The firm has a required return on​ equal-risk investments of 11.2%. Evaluate this​ decision, and make a recommendation to the firm.

Answers

Based on the given information, the firm's decision to shorten its credit period is not advisable as it will lead to a decrease in profit.

The firm's decision to shorten its credit period from 45 to 35 days will result in a decrease in sales from 11,500 to 9,500 units.

Current sales revenue = 11,500 × $56 = $644,000

New sales revenue = 9,500 × $56 = $532,000

The total variable cost of producing 11,500 units is $43 × 11,500 = $494,500.

Current profit = $644,000 - $494,500 = $149,500

New profit = $532,000 - $494,500 = $37,500

The firm's average collection period is expected to decrease from 50 to 43 days, which means that the firm will be able to collect payments faster, resulting in a decrease in bad debt expenses from 1.4% to 1.1% of sales.

Current bad debt expenses = 1.4% × $644,000 = $9,016

New bad debt expenses = 1.1% × $532,000 = $5,852

However, the decrease in profit is greater than the decrease in bad debt expenses.

The net loss in profit due to the proposed change is $112,000, which represents a loss of $9.74 per unit.

The firm's required return on equal-risk investments is 11.2%. The loss of $9.74 per unit represents a return of -17.4%, which is lower than the required return. Therefore, the firm's decision to shorten its credit period is not advisable.

Learn more about investment risk: https://brainly.com/question/30176412

#SPJ11

you are purchasing a new machine that costs $12 million, and that has a 7 year expected life span. After 7 years, the estimated salvage value is $2 million. What is the yearly straight-line depreciation? (answer in MILLION dollars, but without the dollar sign, e.g. "0.42" is $0.42 million) Type your answer...

Answers

The yearly straight-line depreciation for the machine is $1.43 million.

The yearly straight-line depreciation for the new machine that costs $12 million and has an expected life span of 7 years with a salvage value of $2 million is calculated by subtracting the salvage value from the cost of the machine and dividing it by the expected life span. In this case, the calculation would be:

($12 million - $2 million) / 7 years = $1.43 million per year

Therefore, the yearly straight-line depreciation for the machine is $1.43 million.

Straight-line depreciation is a common method used to calculate the decrease in the value of assets over time. It assumes that the value of the asset decreases by an equal amount each year. In this case, the depreciation expense for the machine is spread out evenly over its expected life span of 7 years. The salvage value is also taken into account to determine the total amount of depreciation. The yearly straight-line depreciation can be useful for companies to determine the cost of owning and operating assets over their useful lives.

For more about straight-line depreciation:

https://brainly.com/question/11974283

#SPJ11

Your stock has a β = 2.77, the expected return on the stock
market is 16.67%, and the yield on T-bills is 6%. What is the
expected return on your stock?

Answers

To calculate the expected return on your stock, we can use the following formula: Expected return = risk-free rate + β * (market return - risk-free rate)Plugging in the given values, we get:
Expected return = 6% + 2.77 * (16.67% - 6%)
Expected return = 6% + 2.77 * 10.67%
Expected return = 6% + 29.50%
Expected return = 35.50%
Therefore, the expected return on your stock is 35.50%.The expected return on the stock can be calculated using the Capital Asset Pricing Model (CAPM):Expected return on stock = Risk-free rate + Beta*(Expected market return - Risk-free rate)

Read more about Capital Asset here:https://brainly.com/question/15300072

#SPJ11

what is the central role of financial intermediaries in a market economy?group of answer choicesproviding safe deposit boxes for people and businessesthe creation and printing of moneybringing together savers and borrowerskeeping the price level stable

Answers

The central role of financial intermediaries in a market economy is bringing together savers and borrowers.

Financial intermediaries are generally used for financial transactions. This usually takes place between different banks.

These types of intermediaries lower the cost of doing business. For leasing purposes, we should use financial intermediaries, and also defer ourselves from accepting credits from the public in this scenario.

To learn more about financial intermediaries,

https://brainly.com/question/30780098

1. An indenture​ is:
A. another name for a​ bond's coupon.
B. the legal agreement between the bond issuer and the bondholders.
C. a bond that is secured by the inventory held by the​ bond's issuer.
D. a bond that is past its maturity date but has yet to be repaid.
E. the written record of all the holders of a bond issue.
2. Kaiser Industries has bonds on the market making annual coupon​ payments, with 14 years to​ maturity, and selling for​ $1,382.01. At this​ price, the bonds have a yield to maturity of 5.9 percent. What is the dollar amount of annual​ coupon?
A. ​$99.47
B. ​$59.00
C. ​$100.39
D. ​$40.69
E. ​$99.84

Answers

1.  An indenture​ is the legal agreement between the bond issuer and the bondholders. The correct answer is B. 2. The dollar amount of the annual​ coupon is $99.84. The correct answer is E.

1. An indenture is the legal agreement between the bond issuer and the bondholders, which specifies the terms and conditions of the bond.

2. To calculate the annual coupon payment, we use the present value formula and solve for the coupon payment (C). The formula is:

[tex]PV = C / (1+r)^1+ C / (1+r)^2 + ... + C / (1+r)^n + FV / (1+r)^n[/tex]

where PV is the present value, r is the yield to maturity, n is the number of years to maturity, and FV is the face value of the bond. Rearranging the formula to solve for C, we get:

[tex]C = (PV - FV / (1+r)^n) / ((1+r)^1 + (1+r)^2 + ... + (1+r)^n)[/tex]

Substituting the given values, we get:

C = ($1,382.01 - $1,000 / (1+0.059)¹⁴) / ((1+0.059)¹ + (1+0.059)² + ... + (1+0.059)¹⁴) = $99.84

Therefore, the annual coupon payment is $99.84.

To know more about legal agreement, refer here:
https://brainly.com/question/13707742#
#SPJ11

the candle shop experienced the following events during its first year of operations: acquired cash by issuing common stock. paid a cash dividend to the stockholders. paid cash for operating expenses. borrowed cash from a bank. provided services and collected cash. purchased land with cash. determined that the market value of the land is higher than the historical cost.

Answers

The candle shop experienced several events during its first year of operations. Firstly, they acquired cash by issuing common stock.

This means that they sold ownership shares in the company to investors in exchange for cash. Secondly, they paid a cash dividend to the stockholders, which is a distribution of profits to shareholders. Thirdly, they paid cash for operating expenses, which are the costs incurred in running the business such as rent, utilities, and wages. Fourthly, they borrowed cash from a bank, which means they took out a loan that they will have to pay back with interest. Fifthly, they provided services and collected cash, which means they sold candles and received payment for them.

Lastly, they purchased land with cash. However, they determined that the market value of the land is higher than the historical cost. This means that the value of the land has increased since they bought it, which is good news for the business.

Learn more about candle shop  here:https://brainly.com/question/14857684

#SPJ11

Conclude an entry barriers essay

Answers

Entry barriers refer to the obstacles that prevent new companies from entering a particular market or industry. The goal of implementing entry barriers is to create a competitive advantage for existing companies, which makes it difficult for new players to enter and compete in the market.

There are many different types of entry barriers, including economies of scale, access to distribution channels, regulatory hurdles, intellectual property rights, and brand recognition. It's important to note that entry barriers can have both positive and negative effects on competition and consumer welfare.

In conclusion, entry barriers can be an effective way for companies to maintain their competitive edge and protect their market share. However, policymakers and regulators must also consider the potential negative consequences of entry barriers, such as reduced innovation and higher prices for consumers. Ultimately, finding the right balance between promoting competition and protecting existing companies is key to maintaining a healthy and dynamic economy.

Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 7 years left to maturity bond. If the bond has a 7% coupon rate but pays interest semi-annually and you require a 5% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

Answers

I am willing to pay $985.81 today for this bond if you require a 5% return on your investment.

How to calculate the price of the bond?

To calculate the price of the bond, we need to find the present value of all the future cash flows (interest payments and principal repayment) discounted at the required rate of return of 5%.

The bond has a face value of $1,000 and a coupon rate of 7% paid semi-annually, so the semi-annual coupon payment is:

Coupon payment = Face value * Coupon rate / 2

= $1,000 * 7% / 2

= $35

Since the bond pays interest semi-annually, there will be 14 coupon payments (7 years x 2 payments per year) of $35 each. At the end of the 7th year, the bond will also pay back the face value of $1,000.

Using the formula for the present value of an annuity, we can find the present value of the 14 coupon payments:

PV of coupons = Coupon payment * [1 - 1/(1+r)^n] / r

where r is the required rate of return and n is the number of periods (in this case, 14 semi-annual periods).

Plugging in the values, we get:

PV of coupons = $35 * [1 - 1/(1+5%/2)^14] / (5%/2)

= $444.94

Using the formula for the present value of a single sum, we can find the present value of the face value payment:

PV of face value = Face value / (1+r)^n

Plugging in the values, we get:

PV of face value = $1,000 / (1+5%)^14

= $540.87

Therefore, the total present value of the bond's cash flows is:

Total present value = PV of coupons + PV of face value

= $444.94 + $540.87

= $985.81

So you are willing to pay $985.81 today for this bond if you require a 5% return on your investment.

Learn more about cash flows

brainly.com/question/30736595

#SPJ11

although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately . group of answer choices the internal rate of return that is relevant for evaluating the firm's future investment opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities

Answers

While a firm's existing mix of financing sources and target capital structure are important considerations, they are ultimately less relevant than the marginal cost of capital when evaluating the firm's future investment opportunities.

The most important factor to consider when evaluating a firm's future investment opportunities is the marginal cost of capital. The marginal cost of capital refers to the cost of obtaining additional funds to finance a new project or investment. It takes into account the various sources of financing available to the firm, including debt, equity, and other forms of financing.

When a firm is considering a new investment opportunity, it will typically need to raise additional funds to finance the project. The cost of these funds will depend on the firm's existing financing mix, as well as the current market conditions for different types of financing. For example, if interest rates are low, the cost of debt financing may be relatively cheap, while equity financing may be more expensive.

To evaluate the potential return on a new investment opportunity, it is important to compare the expected return on the investment to the marginal cost of capital. If the expected return on the investment is greater than the marginal cost of capital, then the investment is likely to be profitable for the firm. However, if the expected return is lower than the marginal cost of capital, then the investment is unlikely to generate a positive return for the firm.

It is worth noting that the risk-free rate of return can also be relevant when evaluating a firm's future investment opportunities. The risk-free rate of return refers to the rate of return on a risk-free investment, such as a government bond. This rate can be used as a benchmark for comparing the expected return on a new investment opportunity. If the expected return on the investment is significantly higher than the risk-free rate of return, then the investment may be worth considering.

Click the below link, to learn more about marginal cost:

https://brainly.com/question/7781429

#SPJ11

actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except: group of answer choices hiring and training groups that have been underrepresented recruiting from groups the employer hasn't previously made an attempt to recruit from mentoring, management training, and other development hiring individuals from underrepresented groups, even if not fully qualified

Answers

The actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except hiring individuals from underrepresented groups, even if not fully qualified.

The other options, such as hiring and training groups that have been underrepresented, recruiting from groups the employer hasn't previously made an attempt to recruit from, and providing mentoring, management training, and other development, are all positive steps toward promoting workplace diversity and inclusion.

However, hiring individuals who are not fully qualified for a position could potentially undermine the objective of achieving a diverse and inclusive workplace, as it might result in lowered performance or negative perceptions from other employees. Instead, focusing on hiring qualified candidates and providing opportunities for growth and development can create a more equitable and inclusive environment for all employees.

To know more about workplace click here

https://brainly.com/question/31281236

#SPJ11

The common stock of NCP paid 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years.
a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?
b. If your required rate of return is 10.5 %, what is the value of the stock for that investor?
c. Should you make the investment?

Answers

Given that your required rate of return is 10.5% and the stock value ($57.024) is higher than the current market price ($23.50), it is clear that the stock is undervalued and would be a wise investment.

We'll be using the Dividend Discount Model (DDM) to solve the problem.

a. To calculate the stock's expected rate of return, we'll use the following formula:
Expected Rate of Return = (Dividend1 / Current Market Price) + Dividend growth rate

First, we need to find Dividend1, which is the dividend for the next year. We have:
Dividend0 = $1.32 (last year's dividend)
Dividend Growth Rate = 8%

Dividend1 = Dividend0 * (1 + Dividend Growth Rate)
Dividend1 = $1.32 * (1 + 0.08)
Dividend1 = $1.4256

Now, we can calculate the expected rate of return:
Expected Rate of Return = ($1.4256 / $23.50) + 0.08
Expected Rate of Return = 0.06066 + 0.08
Expected Rate of Return = 0.14066 or 14.066%

b. To find the value of the stock for an investor with a required rate of return of 10.5%, we'll use the DDM formula:
Stock Value = Dividend1 / (Required Rate of Return - Dividend Growth Rate)

Stock Value = $1.4256 / (0.105 - 0.08)
Stock Value = $1.4256 / 0.025
Stock Value = $57.024

c. To determine if you should make the investment, compare the stock value with the current market price. In this case:
Stock Value = $57.024
Current Market Price = $23.50

Since the stock value ($57.024) is greater than the current market price ($23.50), it indicates that the stock is undervalued, and it would be a good investment based on your required rate of return of 10.5%.

For more such questions on investment, click on:

https://brainly.com/question/29547577

#SPJ11

if a firm permanently borrows $100 million at an interest rate of 8 percent, what is the present value of the interest tax shield? (assume that the marginal corporate tax rate is 21 percent.)

Answers

The present value of the interest tax shield for the firm is $21 million.

How to calculate the present value

When a firm borrows money, it receives an interest tax shield, which is a tax deduction on the interest paid.

In this case, the firm has borrowed $100 million at an interest rate of 8 percent, which leads to an annual interest expense of $8 million ($100 million * 0.08).

The marginal corporate tax rate is 21 percent, so the interest tax shield can be calculated as the annual interest expense multiplied by the tax rate.

Interest Tax Shield = Annual Interest Expense * Tax Rate

Interest Tax Shield = $8 million * 0.21

Interest Tax Shield = $1.68 million

The present value of the interest tax shield depends on the time frame and discount rate.

Since it's a permanent loan, the tax shield is a perpetuity, which can be calculated by dividing the annual tax shield by the discount rate.

Assuming the discount rate is equal to the interest rate (8 percent), the present value of the interest tax shield can be calculated as follows:

PV of Interest Tax Shield = Interest Tax Shield / Discount Rate

PV of Interest Tax Shield = $1.68 million / 0.08

PV of Interest Tax Shield = $21 million

Learn more about present value at

https://brainly.com/question/29586738

#SPJ11

archaeologists have found little evidence of any hospitality or tourism businesses; it appears that the industry started in more modern times.

Answers

This statement is generally true. While there may have been some limited forms of hospitality or tourism businesses in ancient times (such as inns or lodgings for travelers), the modern tourism industry, as we know it today, did not emerge until the 19th and 20th centuries.

Before the modern era, travel was often difficult and dangerous, and most people traveled only out of necessity, such as for trade, pilgrimage, or military purposes. While there were some notable examples of early tourism, such as the Grand Tour of Europe undertaken by wealthy young men in the 17th and 18th centuries, these were the exception rather than the rule.

The growth of the modern tourism industry was fueled by a combination of factors, including improvements in transportation (such as the development of railroads and steamships), rising levels of income and leisure time, and the emergence of new forms of tourism such as beach resorts and theme parks.

To know more about hospitality here

https://brainly.com/question/618712

#SPJ4

While there may not be much evidence of hospitality or tourism businesses in ancient times, this is not surprising given the informal nature of these industries and the fact that the concept of tourism as we know it today did not exist. The modern hospitality and tourism industry has its roots in the 19th century and has grown rapidly in the years since, becoming a significant contributor to many national economies around the world.

Archaeologists have indeed found little evidence of hospitality or tourism businesses in ancient times, indicating that these industries started in more modern times. This lack of evidence could be attributed to a number of reasons. Firstly, hospitality and tourism were not highly organized industries in ancient times, and therefore the physical remains of such businesses may not have been well-preserved.

Additionally, hospitality and tourism were often provided on an informal basis by local residents, making it difficult for archaeologists to distinguish between a residential structure and a hospitality establishment.Another factor that may have contributed to the lack of evidence is that the concept of tourism as we know it today did not exist in ancient times. Instead, people traveled for reasons such as trade, religious pilgrimage, or military conquest.

These journeys were often arduous and dangerous, and travelers were primarily concerned with finding shelter and provisions rather than recreational activities.It wasn't until the 19th century that the concept of tourism as a leisure activity began to emerge, and with it, the development of a more formal hospitality industry. This industry grew rapidly throughout the 20th century, fueled by advances in transportation and communication technology, and the increasing wealth and leisure time of the middle class.

For more such questions on hospitality

https://brainly.com/question/31440281

#SPJ11

8. Determine the beta of a portfolio formed by 30% risk-free asset, 25% stocks of UBS with a volatility of 15% and with a beta of 0.8; 65% in Unilever stocks with a variance of 0.0012 and a beta equal to 0,6 and a short selling position equal to 20% in corporate bonds of Eon with a beta of 0,3. A) Beta between 0, 45 and 0,55 B) Beta between 0,6 and 0,7 C) Beta between 0,33 and 0,43 D) None of the above

Answers

The beta of the given portfolio is beta between 0.45 and 0.55 Therefore, the correct option is A.

To determine the beta of a portfolio, we need to calculate the weighted average of the betas of each component in the portfolio. Given the information in your question, we have:

1. 30% risk-free asset (beta = 0)

2. 25% UBS stocks (beta = 0.8)

3. 65% Unilever stocks (beta = 0.6)

4. -20% Eon corporate bonds (short selling, beta = 0.3)

Now, we'll calculate the weighted average beta:

Portfolio beta = (0.30 * 0) + (0.25 * 0.8) + (0.65 * 0.6) + (-0.20 * 0.3)

Portfolio beta = (0) + (0.2) + (0.39) + (-0.06)

Portfolio beta = 0.53

Based on the calculated portfolio beta of 0.53, the correct answer is A) Beta between 0.45 and 0.55.

Learn more about Beta:

https://brainly.com/question/30691992

#SPJ11

true or false: transformation processes occur in all organizations, regardless of what the organization produces.

Answers

True. Regardless of the products they generate, transformation processes happen in all organisations. All organisations engage in transformation, or the conversion of inputs into outputs, in order to accomplish their aims and objectives.

True. Transformation processes occur in all organizations, regardless of what the organization produces. Transformation refers to the conversion of inputs into outputs, and all organizations engage in this process to achieve their goals and objectives. Inputs may include resources such as materials, labor, and capital, while outputs may include products or services. Whether an organization produces goods or services, it must transform inputs into outputs to create value for its stakeholders.

Learn more about Transformation here

https://brainly.com/question/13801312

#SPJ11

a physical inventory taken on december 31, 2020, resulted in an ending inventory of $1,050,000. jep's markup on cost has remained constant at 32% in recent years. jep suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. at december 31, 2020, what is the estimated cost of missing inventory?

Answers

The estimated cost of missing inventory is $538,235.30. However, it's important to note that this is just an estimate and further investigation would be necessary to determine the actual cost of missing inventory.

To calculate the estimated cost of missing inventory, we need to use the retail inventory method. The retail inventory method is a way to estimate the cost of inventory by using the ratio of the cost of goods available for sale to the retail price of goods available for sale.

First, we need to determine the cost of goods available for sale. We know the ending inventory at cost is $1,050,000, but we don't have information on the cost of goods sold. However, we can use the retail inventory method to estimate the cost of goods sold.

Let's assume that the total cost of goods available for sale is $3,000,000 (this includes the ending inventory at cost plus the cost of goods sold). We also know that Jep's markup on cost is 32%, which means that the cost of goods is 68% of the selling price.

Using this information, we can calculate the total selling price of goods available for sale as follows:

Selling price = Cost / (1 - Markup on cost)

Selling price = $3,000,000 / (1 - 0.32)

Selling price = $4,411,765.96

Next, we need to calculate the cost of goods sold:

Cost of goods sold = Selling price x (1 - Gross margin ratio)

Cost of goods sold = $4,411,765.96 x (1 - 0.68)

Cost of goods sold = $1,411,764.70

Now we can calculate the estimated cost of missing inventory:

Estimated cost of missing inventory = Cost of goods available for sale - Ending inventory at cost - Cost of goods sold

Estimated cost of missing inventory = $3,000,000 - $1,050,000 - $1,411,764.70

Estimated cost of missing inventory = $538,235.30

Click the below link, to learn more about Inventory:

https://brainly.com/question/14184995

#SPJ11

Describe how traditional management has had to adapt to modern
digital management. Provide examples to support your answer.

Answers

Traditional management has had to adapt to modern digital management by incorporating technology in decision-making, communication, and operations, leading to improved efficiency and productivity.

Traditional management has had to adapt significantly to modern digital management, with the advent of new technologies and the rise of digital communication. In the past, management was more hierarchical, with a top-down approach to decision-making and communication.

However, with the increasing use of digital tools, management has had to become more collaborative, flexible, and responsive.

One key example of this shift is in the way that companies now communicate and collaborate with employees and teams. Digital tools like video conferencing, instant messaging, and project management software have made it possible for teams to work together more seamlessly, no matter where they are located.

Another example is in the way that companies now collect and analyze data. Traditional management often relied on static reports and gut instincts to make decisions, but with the rise of big data and advanced analytics, companies can now gather real-time insights and make data-driven decisions.

Overall, traditional management has had to adapt to modern digital management in order to stay competitive and to meet the needs of a rapidly changing business environment. By embracing new technologies and adopting more collaborative and data-driven approaches to decision-making, companies can become more agile, responsive, and effective in their operations.

To know more about traditional management click here:

https://brainly.com/question/27962144

#SPJ11

Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 115 percent of par value, what is the YTM?

Answers

The yield to maturity (YTM) on the 15-year bonds issued by Watters Umbrella Corp. can be calculated by using the current market price of the bonds and the coupon rate. Since the bonds make semiannual payments, the coupon rate can be divided by two to get the semiannual coupon payment.

First, we need to calculate the semiannual coupon payment which is 8% / 2 = 4%. Next, we need to find the present value of the semiannual coupon payments and the principal payment using the YTM.

Since the bonds are currently selling at 115% of par value, the price of each bond would be 1.15 x $1,000 = $1,150. We can use this price to calculate the YTM using a financial calculator or Excel's RATE function.

Assuming a face value of $1,000, a coupon rate of 4%, 30 payments (15 years x 2 payments per year), and a present value of -$1,150 (since it's the cash outflow), we get a YTM of approximately 3.5%. Therefore, the YTM for Watters Umbrella Corp.'s 15-year bonds is approximately 3.5%.

To know more about yield to maturity, refer to the link:

https://brainly.com/question/30676637#

#SPJ11

be 9 yes Financial results may a misleading indicator of strategic health of a company do you agree with this statement? Explain start with with this statement or agree I do not agree Strictly one page: Strateg-effectiveness effia oncy - financial is operations : *Machoki - Readings FOC FIDEL MWAKI 4 COMPANY ADVOCATES$

Answers

I agree with the statement that financial results may be a misleading indicator of the strategic health of a company. While financial performance is undoubtedly important, it cannot be the only metric for evaluating a company's overall success.

A company may have strong financial results but still struggle with operational efficiency, or its strategic goals may not align with its financial performance.

For example, a company may have achieved high profitability through cost-cutting measures, but at the expense of investing in long-term growth opportunities.

Alternatively, a company may have incurred short-term losses in pursuit of a strategic shift that will position it for long-term success.

Therefore, it is essential to evaluate a company's overall strategy, effectiveness, efficiency, and operations alongside financial performance to gain a comprehensive understanding of its strategic health. Focusing solely on financial results can lead to a short-sighted view of a company's long-term prospects.

To know more about financial performance refer here:

https://brainly.com/question/17307055#

#SPJ11

Other Questions
a sample of br2(g) takes 26.0 min to effuse through a membrane. how long would it take the same number of moles of ar(g) to effuse through the same membrane? A two-way is normally used as an off/on switch and to control _____. there are 90 people in the restaurant. the probability of someone ordering a drink with the food is 60%. use normal approximation of binomial distribution to answer the following 6 questions. 1. what is the mean of the normal distribution? 2. what is the standard deviation of the normal distribution? 3. what is the probability that exactly 50 people will order a drink? 4. what the probability that more than 50 people will order a drink? 5. what is the probability that less than 50 people will order a drink? 6. what is the probability that between 52 or more and 56 or less people will order a drink? what is the correct from addressing infernal dialogues?Then I told myself, "what it can't make? " An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.A.demand; right; riseB.demand; left; fallC.supply; right; fallD.supply; left; rise the def company is planning a $64 million expansion. the expansion is to be financed by selling $25.6 million in new debt and $38.4 million in new common stock. the before-tax required rate of return on debt is 0.075 and the required rate of return on equity is 0.145. if the company has a marginal tax rate of 0.27, what is the firm's cost of capital? A student is going to the office. He starts out from the classroom and walks 20 m North then stops totalk. Then he starts for the office again and walks 30 m North, but stops again to talk. Then he walks 10 m North and finally makes it to the office. What is a repurchase agreement (Repo)?A. a letter issued by a bank to serve as a guarantee for payments made to a specified company under specified conditionsB. tradable promissory notes issues by companies, that are generally unsecuredC. a contract in which seller of a commodity or security agrees to repurchase it from the buyer at an agreed priceD. line of credit with banks or shareholders the graphical relationship between the price level and the amount of real gdp that businesses will offer for sale is known as the: an object with mass m is released from rest at distance r0 from earth's center and falls on the earth's surface. what is the velocity of the object when it hits the earth's surface? Phloem tissue consists of tube-shaped cells that have small holes at each end. What does this structure enable phloem tissue to do? OA. Trap any microorganisms that are invading the plant OB. Allow oxygen and carbon dioxide to enter and leave the plant OC. Act like sieves, letting only some materials pass through OD. Share genetic material among all the cells of the plant A 25 kg child plays on a swing having support ropes that are 2.20 m long. A friend pulls her back until the ropes are from the vertical and releases her from rest. (a) What is the potential energy for the child just as she is released compared with the potential energy at the bottom of the swing? (b) How fast will she be moving at the bottom of the swing? (c) How much work does the tension in the ropes do as the child swings from the initial position to the bottom? the oldest fossils to be designated homo sapiens are _____. multiple choice question. cro-magnons australopithecines neandertals ardipithecines Areas near which one of the following cities were covered with an ice sheet about a half a mile thick during the last ice age?Please choose the correct answer from the following choices, and then select the submit answer button.Answer choicesWashington, D.C.ChicagoMiamiSan Francisco Your cousin bought a used car. He paid a total of $12,755 for the car. The total cost includes: The list price of the car, x A 7% sales tax on the list price . Plus $450 in additional fees. What is the price of the car your cousin bought?List price: Order in which persons may become President if the President becomes dies or is removed from office.A. Executive Orderb. Electoral Collegec. Winner takes all D. Succession You open a retirement savings account where you deposit $300 per month in an account earning 8% interest (compounded monthly). You plan to retire in 30 years. How much will have in the account when you retire?A. $447,107B. $411,367C. $499,998D. $543,787E. $528,235 How might natural barriers have contributed to the development of different cultures throughout the city-states of ancient Greece how is desertification being countered in inner mongolia? CASE STUDY AAcute PainL.Y. is a healthy 13-year-old who had all her wisdom teeth removed 6 hours ago and is experiencing significant pain. She has been prescribed acetaminophen and codeine for pain relief and is at home recovering. Her mother wants her to rest and stop text- messaging her friends about her dental surgery.1. How do acetaminophen and codeine act to reduce pain? What is a side effect of high levels of each drug? Why has the dentist prescribed only a limited supply of the medication?2. How does L.Y.'s text-messaging behavior affect her perception of pain?3. Does L.Y. need to rest in bed quietly to reduce pain? 4. L.Y. becomes increasingly irritated with her mother and tells her to "get off my case." How does L.Y.'s stress affect pain perception?