| | | | | * Question 4 2 out of 2 points | | | Using the data below, determine the amount of consumer surplus, if any, in the market. The market clearing price for matinee tickets is $3 | Matinee TicketsWilling to Pay(WTP) | Tony | $1 | George | $2 | Deshon | $3 | Mario | $4 | Antonio | $5 | Brittney | $6 | | | | | | Selected Answer: | $6 | | | | | * Question 5 2 out of 2 points | | | Examine the graph below. The government has placed a $200 tariff on product z. The new equilibrium price is $600. What has happened to consumer surplus?
According to the text, the exception amount for active owners is phased out as income increases: the $25,000 maximum exception amount is phased out by 50 cents for every dollar the taxpayer’s adjusted gross income (before considering the rental loss) exceeds $100,000. 120,000-100,000*.5= 10,000 phase out 25,000-10,000= 15,000 total deductible loss; Alexa can still deduct the $2,400 because her loss is less than the 15,000. New AGI 120,000-2,400= $117,600 d. Assume that Alexa’s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, and $25,000 of
This is partly a practical decision given that we have not provided rates beyond 20 year term in the book. We use the quoted value for $250,000 policies pro-rated to the size of policy we need, and this is incorrect — policy premiums per dollar decline as the size of the policy rises, since some costs are fixed. However, it is the best we have, and the difference will not be
If you take 8 radios and times it $50 it equals 400. If you take 6 radios and times it by $50 it equals $300. Since one guard gets paid $200 a week it would make sense to hire more than one guard especially since if they only hire one guard they will still lose $1300 (1500-200). If would also make since if they hire more than two guards because they would still
In this case, the only cost saving is approximately $500k. However, the addition of an extra level to an already mismanaged distribution center will not help in improving the problems of stock outs and may further deteriorate performance. The assumptions made in this case are: 1. Inventory carrying costs of 25% 2. The average salary of supervisors is $60,000 annually 3.
Capital Budgeting Case QBR/501 Capital Budgeting Case Given two separate companies to compare I had to first crunch the numbers using the information on both companies that were proposed. The spending limit was $250,000 and I could not go over that amount. Corporation “A” had revenues equaling $100,000 in year one but increasing by 10% each year. It also had expenses of $20,000 and increasing by 15% each year. The depreciating expense is $5000 each year with a tax rate of 25% and discount rate of 10%.
Taking about $2,691,000 and dividing it by $40,000,000 dollars would result in a return of equity of some 6.73.00%. This would then be the lowest by far of the three investment types. It would require by far the least amount of debt that would have to be used and financed and would also use the most working capital of assets being used to finance and fund the investment. Conservative EBIT-$6,000,000 Minus Interest-1,515,000 EBT-$4,485,000 Minus Tax Rate of
We miss essential information like the interest rate and maturity of the debt to calculate the market value of debt. From the book value of debt and the interest expenses over 2007 we estimate the cost of debt: 2,26/43,08 = 5,25 %. This is 0.7% more than the risk free rate. This seems reasonable when considering the low leverage ratio of the firm and high cash reserves of the firm, on the other side the interest coverage ratio of Tottenham of 1,24 is pretty low. We assume that the amount of debt has been constant over 2007.
C. accounting profits produced. D. increase in total sales produced. 3. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and is currently worth $25,000. Ignoring taxes, the correct opportunity cost for this machine in capital budgeting decisions is: A.
But the credit card companies only advertise the simple rate of interest to you. If you owe $3,000 on your credit card that has a 24.99 percent interest rate, if you use simple interest, you would owe $749.70 extra in interest after one year. Using monthly compounded interest, you will owe $3,841.82, or an extra $92.12. If interest is compounded more often than monthly the figure you owe will be higher.3 What does the Bible say about credit cards? While God doesn't necessarily say "Thou shalt not use credit cards," the Bible does tell us to be wise stewards of our money and Proverbs 22:74 says the borrower is