Questions
Is there a paradox to the statement, the marginal cost of producing a pure public good...

Is there a paradox to the statement, the marginal cost of producing a pure public good is always positive, some consumers can enjoy the benefits of pure public goods at zero marginal costs?

In: Economics

Which of the following are manufacturing cost for a company that produces sweaters? A. The knitting...

Which of the following are manufacturing cost for a company that produces sweaters?

A. The knitting wool that use to sew the tag on it.

B. The supervisor review the finished sweaters in the factory.

C. Depreciation of equipment used by the human resources department.

D. All of them are not manufacturing costs.

Which of the following are considered as product cost?

A.equipment repair fee

B.Utilities

C.Supplies used by the human resources department

D.Sales manager's salary

E. finished goods warehouse fee

In: Accounting

"As You Like It" is a movie rental club that rents movies at a cost of...

"As You Like It" is a movie rental club that rents movies at a cost of $10.00 for 10 days per movie rented.    Jill Thom was excited to use this facility since there was no internet in her area and the television options were limited. Besides it would be a good way to pass the time with the family over the weekends. She planned to make popcorn. Jill paid for the movies. At the bottom of the receipt it stated that if the movies were returned after 10 days there was an additional daily cost per movie of $7.00.  

The movies were so enjoyable that they were replayed several times over and was returned 2 weeks late. When Jill returned them she was told that she had to pay an additional amount of over $500.00 for the late return. She was furious and comes to you for advice.

Advise Jill.

In: Operations Management

What are the disadvantages to the cost of carry model for pricing futures contracts?

What are the disadvantages to the cost of carry model for pricing futures contracts?

In: Finance

(Individual or component costs of capital) Compute the cost of capital for the firm for the...

(Individual or component costs of capital) Compute the cost of capital for the firm for the following:

A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.8 percent. Interest payments are $54.00 and are paid semiannually. The bonds have a current market value of $1,130 and will mature in 15 years. The firm's marginal tax rate is 34 percent.

A new common stock issue that paid a $1.77 dividend last year. The firm's dividends are expected to continue to grow at 8.4 percent per year, forever. The price of the firm's common stock is now $27.61.

A preferred stock that sells for $141, pays a dividend of 8.5 percent, and has a $100 par value.

A bond selling to yield 10.4 percent where the firm's tax rate is 34 percent.

In: Finance

What are some advantages and disadvantages of using a standard cost system?

What are some advantages and disadvantages of using a standard cost system?

In: Accounting

In today's economic environment, is the cost of capital for an MNE likely to be more...

In today's economic environment, is the cost of capital for an MNE likely to be more or less expensive than the cost of capital for a domestic firm? Explain.

In: Finance

A storage tank acquired at the beginning of the fiscal year at a cost of $104,400...

A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $6,400 and an estimated useful life of four years.

a. Determine the amount of annual depreciation by the straight-line method.
$fill in the blank 1

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

Depreciation
Year 1 $fill in the blank 2
Year 2 $fill in the blank 3

In: Accounting

Consider the following projects and assume an opportunity cost of capital of 12%.

Consider the following projects and assume an opportunity cost of capital of 12%.

 

a. Calculate the Net Present Value (NPV) of each project. Which is to be preferred and why?

(8 marks)

b. If there is a capital constraint in place which limits spending to £10,000, which project or projects should be selected? Support your answer with calculations.

In: Finance

A researcher wishes to test claim that that the average cost of a coke in Mexico...

A researcher wishes to test claim that that the average cost of a coke in Mexico is different than the average cost for a coke in Russia. The cost is measured in US Dollars. Sample data are provided below. Test the claim using α=0.10.

Mexico Russia

X ¯ 1 =1.26

s 1 =0.11

n 1 =14

X ¯ 2 =1.52

s 2 =0.09

n 2 =14

State the claim:

H 0 μ 1    

H 1 μ 1≠ μ 2 claim

Determine the direction of the tails: Left, Right, or Two:  tail/s.

Find the critical value:+/-

Compute Test Point (round to 2 place values) :

Do we Reject or Do Not Reject?  

Summarize: There is enough evidence to  the claim.

In: Statistics and Probability