Answer:
1,030
Explanation:
Calculation for what is the exponential smoothing forecast value
Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)
Exponential smoothing forecast value = 1,000 + 0.3 x (100)
Exponential smoothing forecast value = 1,000 + 30
Exponential smoothing forecast value= 1,030
Therefore the exponential smoothing forecast value will be 1,030
Answer:
<h2>Because firms in a perfectly competitive market does not have any price making ability or market power,they are not able to engage in any price discrimination.Hence,the correct answer is the last option or True,because perfectly competitive firms have no market power.</h2>
Explanation:
In Microeconomics,perfectly competitive markets are characterized by many buyers and sellers in which the sellers and firms usually sell homogeneous or identical products.Now,as there are many firms in the market and no barriers to entry for new firms into the market,the market competition or rivalry is high and hence,no single firm has the ability to determine and manipulate the market price according to their own economic advantage because if any firm tries to do so,it will loose significant market share as most customers would move to other sellers/firms charging lower price or regular market price.Therefore,the market price is fixed in the perfectly competitive market as the firms do not have price making or market power.Consequently,they are not able to charge different prices to different customers according to their maximum willingness to pay or differences in price preferences.
Answer:
Explanation:
Given the following data about Dayna's Doorstep Inc(DD) :
Cost given by; C = 100 - 5Q + Q^2
Demand ; P = 55 - 2Q
A.) Set price to maximize output;
Marginal revenue (MR) = marginal cost (MC)
MR = taking first derivative of total revenue with respect to Q; (55 - 2Q^2)
MC = taking first derivative of total cost with respect to Q; (-5Q + Q^2)
MR = 55 - 4Q ; MC = 2Q - 5
55 - 4Q = 2Q - 5
60 = 6Q ; Q = 10
From
P = 55 - 2Q ;
P = 55 - 2(10) = $35
Output
35(10) - [100-5(10)+10^2]
350 - 150 = $200
Consumer surplus:
0.5Q(55-35)
0.5(10)(20) = $100
B.) Here,
Marginal cost = Price
2Q - 5 = 55 - 2Q
4Q = 60 ; Q = 15
P= 55 - 2(15) = $25
Totally revenue - total cost:
(25)(15) - [100-(5)(15)+15^2] = $125
Consumer surplus(CS) :
0.5Q(55-25) = 0.5(15)(30) = $225
C.) Dead Weight loss between Q=10 and Q=15, which is the area below the demand curve and above the marginal cost curve
=0.5×(35-15) ×(15-10)
=0.5×20×5 = $50
D.) If P=$27
27 = 55 - 2Q
2Q = 55 - 27
Q = 14
CS = 0.5×14×(55 - 27) = $196
DWL = 0.5(1)(4) = $2
Answer:
Turnbull's weighted average cost of capital will be higher by 0.65% if it has to raise additional common equity capital.
Explanation:
By combining the WACC formula and retained earnings cost of capital,we will arrive at;
WACC = Debt W × after tax cost of debt + Preferred stock weight × cost of capital + Equity W × Cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 12.4%
= 2.85% + 0.56% + 4.46%
= 7.87%
Also, using the same WACC formula and using common equity cost of capital, , we will arrive at the below;
WACC = Debt W × after tax cost of debt + preferred stock weight × cost of capital + Equity W × cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 14.2%
= 2.85% + 0.56% + 5.11%
= 8.52%
Therefore, increase cost using common equity over retained earnings is [ 8.52% - 7.87%]
= 0.65%
N.B we arrived at 4.92% for after tax by;
Pre tax 8.2%
Current tax rate 40%
= Pre tax × ( 1 - cost of debt)
= 8.2% × ( 1 - 40%)
= 8.2% × 0.6%
= 4.92%
Answer:
$18,711.57
Explanation:
The amount that the Bob will be getting at the beginning of the each month for the next 30 years shall be determined through the present value of annuity formula which shall be determined as follows:
Present value of annuity=R+R[(1-(1+i)^-n)/i]
R=Amount that he will be getting per month for next 30 years=?
i=interest rate per month=5/12=0.4167%
n=number of payment involved=30*12=360 and since the first payment is made at the start of month, therefore the n=359
Present value of annuity=$3,500,000
$3,500,000=R+R[(1-(1+0.4167%)^-359)/0.4167%]
$3,500,000=R+186.05R
$3,500,000=187.05R
R=$18,711.57=payment per month
