If less than the efficient quantity of protein shakes is produced , :
D. marginal cost exceeds marginal benefit
Marginal cost will keep increasing until it passed the equivalent before it finally started to diminish
hope this helps
Answer: $3,338.56.
Explanation:
Given, EAR = 11.4 percent =0.114
Weekly interest rate=
Growth rate of price of flowers = 3.3 % per year
Weekly growth rate=
Star Cost (C)= $6
Time period (t)= 25 years
= 25 x 52 = 1300 weeks
Required formula for growing annuity :
![PV=\dfrac{C}{r-g}[1-(\dfrac{1+g}{1+r})^t]](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7BC%7D%7Br-g%7D%5B1-%28%5Cdfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5Et%5D)
,
where C = Star cost
r = rate per period
g= growth rate
t = time period
![PV=\dfrac{6}{0.00219-0.00063}[1-(\dfrac{1+0.00063}{1+0.00219})^{1300}]\\\\=\dfrac{6}{0.00156}[1-(0.998443408934)^{1300}]\\\\=(3846.15384615)[1-0.13197471131]\\\\=(3846.15384615)(0.86802528869)\approx\$3338.56](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7B6%7D%7B0.00219-0.00063%7D%5B1-%28%5Cdfrac%7B1%2B0.00063%7D%7B1%2B0.00219%7D%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%5Cdfrac%7B6%7D%7B0.00156%7D%5B1-%280.998443408934%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%283846.15384615%29%5B1-0.13197471131%5D%5C%5C%5C%5C%3D%283846.15384615%29%280.86802528869%29%5Capprox%5C%243338.56)
Hence, the present value of this commitment = $3,338.56.
Answer:
1. Historical cost VIOLATION
2. Disclosure principle VIOLATION
3. Matching VIOLATION
4. Historical cost VIOLATION
5. Matching VIOLATION
6. Matching principle VIOLATION
Explanation:
1 &4. Note here that standard accounting procedures mandates that transactions should be recorded precisely in their historical context with no such adjustments.
2. This is a disclosure violation probably done by the company to reduce taxes on its assets which is prohibited by accounting law.
3 &5 & 6. Both transactions represents a matching violation in which transactions are mismatched or adjusted deliberately leading to inaccurate financial account status.
Answer:
$28.53
Explanation:
Asonia Co. stock price will be calculated using discount factor of 9.9% which is investors required rate of return for company's stock.
Stock price = dividends * (1+r)^ - n
$4.30 (1.099)^-1 + $8.40 (1.099)^-2 + $11.25 (1.099)^-3 + $13.40 (1.099)^-4
$3.91 + $6.95 + $8.48 + $9.19
$28.53
