The price elasticity of demand for MedPride Powder-Free Nitrile Exam Gloves, Medium, Box/100, has been estimated to be about −2.0. Data from the MedPride company for 2019 shows that 80 (thousand) boxes per month of the gloves were sold that year. In 2019, the average retail price for a box of the gloves was $16.00. Using this information, derive the linear demand function for MedPride Powder-Free Nitrile Exam Gloves in thousands of boxes in 2019.
In: Economics
|
A |
B |
C |
PRODUCT PRICE |
|
|
LARGE SCREEN |
100 |
110 |
120 |
$12 |
|
MED SCREEN |
70 |
60 |
$10 |
|
|
SMALL SCREEN |
50 |
40 |
30 |
$8 |
Please answer the next 6 questions based on the information provided in the table above for a profit-maximizing firm producing HD TVs. Any of the three output combinations of HD TVs can be produced for the same cost. And to produce any one of the combinations requires that the firm operate at full capacity. The profit associated with combination A is $300. The revenue generated from C is $2,180.
In: Economics
| Common Stock (with beta 1.2) | $7,000,000 |
| Debt | $3,000,000 |
| Preferred Stock (Price $100 per share; flotation cost $2 per share) | $2,000,000 |
| Yield to Maturity | 6% |
| Corporate tax rate | 30% |
| Preferred stock dividend | $4 |
| Risk free rate | 5% |
| Market rate of return | 12% |
Required:
Given the above information, calculate the weighted average cost of capital (WACC) for Big Mart Inc.
Why it is important for Big Mart Inc. to calculate WACC?
In: Finance
Consider the market for trinkets, where the demand and supply aregiven by the formulas:Demand :Quantity=100−PriceSupply :Quantity=−20+2∙Price (a) (10 points) Draw the demand and supply curves, and find the equilibriumprice and equilibrium quantity. (b) (10 points) Imagine that the government introduces a price cap of $30.Compare the consumer surplus before and after the cap is introduced.Are consumers better off or worse off? (c) (10 points) Imagine that now the price cap is reduced to $20. Comparethe consumer surplus after the new price cap with the consumer surpluswithout any cap. Are consumers better off or worse off?
please include an explanation of what steps you are taking to solve this problem thank you
In: Economics
|
Stock |
`Shares (N) |
Price (P) |
|
A |
100 K |
$50 |
|
B |
200 K |
$30 |
|
C |
500 K |
$10 |
In: Finance
|
Firm A |
Firm T |
|||
|
Price per share |
$100.00 |
|
$20.00 |
|
|
Total earnings |
$650.00 |
|
$150.00 |
|
|
Share outstanding |
100 |
|
40 |
|
|
Total Value |
$10,000.00 |
|
800.00 |
|
Suppose Company A will acquire Company T. Company A will offer two new share of A for every five shares of T.
a. If investors are aware that there are no economic gains from
the merger, what is the price-earnings ratio of A's stock after the
merger? _________ (sample answer: 27.50)
b.Now suppose that the merger really does increase the value of the
combined firms by $800, what is the price-earnings ratio of A's
stock after the merger? _________ (sample answer: 27.50)
c. Now suppose that the merger really does increase the value of
the combined firms by $800, What is the final merger premium in
dollar does Company A pay to Company T __________(sample answer:
$450.50)
In: Finance
Consider an industry with market demand Q=550-2p and market supply Q=100+10p. Determine the equilibrium price and quantity. Suppose the govrenment imposes a tax of $6 per unit to be paid by consumers. What is the impact on equilibrium price and quantity? What if the sales tax is paid by the seller instead of the buyer?
Suppose that demand is instead given by Q=280-2p.
a) Show that the equilibrium levels of p and q are the same as in the initial equilibrium
b) Determine the impact of a $6 sales tax in terms of the price effectively paid by buyers and sellers
c) Compare the results in b) and those in the initial part of the exercise. Explain the economic intuition.
In: Economics
|
Company |
Dividend Yield |
Required Return |
Price |
Market Capitalization |
|
A |
5% |
4% |
$100 |
$1,000,000 |
|
B |
4% |
5% |
$10 |
$10,000,000 |
|
|
|
In: Accounting
1.A company has provided the following data:
|
Sales |
12,000 units |
|
Sales price |
$100 per unit |
|
Variable cost |
$50 per unit |
|
Fixed cost |
$300,000 |
If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, by how much will net income increase?
2. Hamada Company sells a single product. The product has a selling price of $100 per unit and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what will the break-even be?
In: Accounting
In: Chemistry