Two chemical corporations, both equity financed with no debt, are essentially in the same business. However, whereas one of the corporations has a stable earnings and dividend record, paying out all its earnings in dividends, the other is a growth stock increasing its earnings and dividends annually through a different management strategy. The current dividend is $5 per share for both corporations. The stable corporation's stock trades for $40 per share and the price of the growth stock is $50.Estimate the investors' required rate of return on these stocks and the steady future growth rate of the growing corporation as perceived by the market.
if someone can do this and show me how its done i would greatly appreciate it.

Answers

Answer 1

Answer:

current dividend $5

price of stable corporation $40

price of growth stock $50

in order to calculate the price of stocks we use the perpetuity or perpetuity with growth formula:

perpetuity formula ⇒ stock price = dividend / required rate of returnperpetuity with growth ⇒ stock price = dividend / (required rate of return - growth rate)

the investors' required rate of return for the stable corporation:

$40 = $5 / rrr

rrr = $5 / $40 = 12.5%

what changes with the growth corporation is not the rrr, it is the growth rate that decreases it:

$50 = $5 / (rrr - g) = $5 / (0.125 - g)

0.125 - g = $5 / $50

0.125 - g = 0.1

g = 0.125 - 0.1 = 0.025 or 2.5%


Related Questions

performance.
Below is the information relating to production and sale of the
threeproducts for the year ending 31 December 2019:
Particulars
Krollers
Bags
Output sold (000)
Unit sales and costs
Selling price
Direct materials
Direct labour
Fixed production costs
Selling and distribution
Costs
Layers
Bags
1,200
Shs
1,050
Shs
Broilers
Bags
1,300
Shs
200,000 185,000 180,000
90,000 100,000
60,000 50,000
28,000 24,000
7,000 7,000
80,000
45,000
30,000
7,000
Administrative costs
5,000 5,000
6,000
Management accountant further advised that shutting down the
production line of feed concentrate for Kroilers will save 20% of the
total annual fixed costs.
Required:
Advise SIL's management, on whether the production line of
feed concentrate for Kroilers should be shut down.
(9 marks)

Answers

Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers

How to explain the information

The decision to shut down a production line is a complex one that should be made on a case-by-case basis.

In the case of SIL, the management accountant has advised that shutting down the production line of feed concentrate for Kroilers will save 20% of the total annual fixed costs. This would result in a net profit increase of Shs. 2,800,000 (20% of 28,000,000). However, there are a number of other factors that need to be considered.

Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers. The financial benefits of the closure would be offset by the costs of job losses, lost sales, and damage to the company's reputation. The company should explore other options, such as finding a way to reduce costs without closing the production line.

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A system of __________
ensures that a community becomes more prosperous because both producers and consumers are better off due to the process of value creation where entrepreneurs continually create new products and services.

A. Industry Nationalization
B. Free enterprise and voluntary exchange
C. Socialism
D. Involuntary exchange

Answers

Answer:

B. Free enterprise and voluntary exchange

Explanation:

If I had to take I guess I would choose free enterprise tbh


Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,785,000 in annual sales, with costs of $695,000. The tax rate is 25 percent and the required return on the project is 12 percent. What is the project’s NPV? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, and round your answer to 2 decimal places, e.g., 1,234,567.89.)

Answers

Answer:

$115,849.581

Explanation:

For computing the net present value first we have to do following calculations

Annual depreciation expense is

= (Cost - Salvage value) ÷ Useful life

= ($2.31 million ÷ 3)

= $770,000

Now

Annual Operating cash flow = (Sales - Costs) × (1 - tax rate) + Tax savings on Annual depreciation

= ($1,785,000 - $695,000) × (1 - 0.25) + (0.25 × $770,000)

= $817,500 + $192,500

= $1,010,000

Now Present value of annuity is

= Annuity × [1 - (1 + interest rate)^ -time period] ÷ rate  

= $1,010,000 × {1 - (1.12)^-3] ÷ 0.12

= $1,010,000 × 2.401831268

= $2,425,849.581

So, Net present value  is

= Present value of inflows - Present value of outflows

= $2,425,849.581 - $2,310,000

= $115,849.581

All of the variables that are intended to satisfy the needs of the consumer are considered part of the ________ in direct marketing.

Answers

All of the variables that are intended to satisfy the needs of the consumer are considered part of the offer in direct marketing.

Direct Marketing Decision Variables

There are several decision variables that form the basic framework of direct marketing techniques, namely:

Offers

Offering is a complete proposal in the form of products and services, prices, and other attributes contained in the products offered to customers.

Creative

The variables included include copying platforms, techniques, graphic design elements as well as all aspects of manufacturing such as customization.

Media

There are various types of media available for direct marketing techniques, such as telephone, sms, email, website, social media, etc.

Timing and Sequencing

There is a choice of time and disposition of communication in direct marketing techniques, such as in general advertising. Direct marketing has higher control than other marketing techniques, such as when emails are sent, the choice of media used, and in what segments direct marketing is carried out.

This is of course different from common marketing techniques, which usually follow their publications, and limitations on space and programs that can be changed according to one's own will.

Customer Service

In this case, the company must provide a free channel where customers can easily and quickly access all information and provide feedback, complaints or suggestions to the company.

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an education and career focused oppurtunity that connects classroom academics

Answers

Answer:

Generally how long is an apprenticeship program?

Explanation:

An education and career focused opportunity that connects classroom    academics with supervised work experience. Students can do job shadowing & dual enrollment courses.

why do people hate taxes?

Answers

because they hate math and money

explain the concept of delegation of authority​

Answers

Explanation:

Delegation of authority is a process that enables a person to assign a task to others. As a manager or leader, you're expected to perform several tasks and meet multiple deadlines. To ensure that you achieve your objectives on time, you delegate responsibility to your team members

Answer:

In order to meet the targets, the manager should delegate authority. Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order.

Explanation:

Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
(Dollars)
Quantity (Dollars)
0
1
2
3
4
5
6
7
5
6
8
11
15
20
26
35
05
06
07
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
6
12
18
24
30
36
42
AAAAAAA
Profit
(Dollars)
In order to maximize profit, how many units should the firm produce? Check all that apply.
04

Answers

The solution to the given question when we consider total cost and total revenue, given in the following table:

The Financial Table

Quantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue | Profit

------- | -------- | -------- | -------- | -------- | --------

0     | 5       | 5        | 0        | 0        | -5

1     | 11      | 6        | 6        | 6        | 1

2     | 17      | 6        | 12       | 6        | 5

3     | 24      | 7        | 18       | 6        | 4

4     | 31      | 8        | 24       | 6        | -7

5     | 39      | 8        | 30       | 6        | -9

6     | 47      | 8        | 36       | 6        | -11

7     | 55      | 8        | 42       | 6        | -13

As you can see, the firm's profit is maximized at quantity 3. This is because the marginal revenue is equal to zero at this point, which means that the firm is not making any additional profit by producing more units. In fact, if the firm produces more units, it will actually start to lose money.

Therefore, the answer to the question is 3.

In summary:

The firm's profit is maximized at quantity 3.This is because the marginal revenue is equal to zero at this point.If the firm produces more units, it will start to lose money.Therefore, the answer to the question is 3.

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¿In two to three sentences, explain why it is important to have insurance.?

Answers

Answer:

Explanation:

Insurance protects yourself, your assets, or even your family against financial loss. Oftentimes, events, such as cancer or a car accident, are random and have the potential to financially run people. Insurance is a way to reduce the financial impacts of these risks.

Question 4 (4 points)
Match each Type of Sales Channel to its corresponding description.
>
Selling products in bulk
to various outlets or
retailers for onward
sale.

When a brand or
manufacturer sells
direct to consumers
and the end users of
their products, as
opposed to selling to
them solely through
retailers.

Selling products directly
to end customers for a
profit, either in-store,
online, mail-order, or
by phone.

Businesses that sell to
other businesses who
are the intended end
user of the product.

1. Retail.
2. Wholesale
3. Direct to Consumer
4. B2B

Answers

Based on business and trading methods, the type of sales channel, that matches the description can be any of the following Retail, Wholesale, Direct Consumer, or B2B.

What are Sales Channels?

The Sales Channel is a term that is used to describe the ways or methods in which producers sell their products. This method can either be through direct or indirect routes.

Considering the available descriptions we have the following sales channel matching them.Wholesale: Selling products in bulk to various outlets or retailers for onward sale.

Direct to Consumer: When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers.

Retail: Selling products directly to end customers for a profit, either in-store, online, by mail-order, or by phone.

B2B: Businesses that sell to other businesses who are the intended end user of the product.

Hence, in this case, it is concluded that each of the types of sales channels has its peculiarities that producers may choose to utilize.

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which two events provide opportunities for the team to collaborate?

a) portfolio sync

b) backlog refinement

c) solution demo

d) Pre-Pi planning

e) Iteration planning

Answers

The two events that provide opportunities for the team to collaborate is Pre-Pi planning, which enables teams to establish a more direct communication process.

Pre-Pi can be defined as a plan to increase the program, through a regular event established in an organizational period with the objective of integrating Agile Release Train teams.

Pre-Pi planning will therefore encourage collaboration through open communication to discuss essential points of work improvement, generating a sharing of visions, plans, discussing resources, etc.

Through Pre-Pri planning, teams will increase their effectiveness by freeing up resources, speeding up processes and better aligning with project requirements.

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Annabelle Jefferson earns net self-employment income of $43,500. She does not work a second job.
Self-Employment tax =

Answers

Based on the net self-employment income to Annabelle Jefferson, and the fact that she does not work a second job, the self - employment tax is $6, 655.50

How to find the self - employment tax?

As of the year 2022, the self - employment tax is based on the self - employment tax rate of 15.3 % which comprises of 12.4% Social Security tax and 2.9% Medicare tax.

Based on the net self-employment income to Annabelle Jefferson of $43, 500 therefore, the self - employment tax to Annabelle Jefferson would be:

= 43, 500 x 15. 3 %
= $6, 655.50

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The US Government is forecasting that the nominal risk-free rate of return on Treasury Notes maturing in 7 years is 2.5% and is expected to be constant for the foreseeable future. Apple Computer's Treasury department is considering issuing a 7 year corporate bond and they know that Apple's corporate bonds generally yield investors 100 basis points or 1% over the nominal risk free rate at the time of issuance. The bonds will be issued at par value. What is the coupon percentage and total yield expected on these new 7 year bonds?
a. 3.5%
b. 10%
c. 2.5
d. Cannot determine

Answers

Answer:

a. 3.5%

Explanation:

If the nominal interest rate of the Treasury bonds is 2.5%, and Apple's corporate bonds yield 1%, just add 2.5% + 1% = 3.5%.

when you are talking about bonds, 100 points = 1%. This many times confuses people that are not aware of this since you hear that a bond will pay 50 points more and you imagine a really high interest rate.

Answer:

A

Explanation:

1. (15 points) A sales budget is given below for one of the products manufactured by the Key
Co.:
January
February
March
April
May
June
21,000 units
36,000 units
61,000 units
41,000 units
31,000 nits
25,000 units
The inventory of finished goods at the end of each month should equal 20% of the next month's
sales. However, on December 31 the finished goods inventory totaled only 4,000 units. Each unit
of product requires three specialized electrical switches. Since the production of these specialized
switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an
ending inventory at the end of each month equal to 30% of the next month's production needs.
This requirement had been met on January 1 of the current year.
Required:
a. Prepare a budget showing the required production each month for January, February, March,
and April
b. Prepare a budget showing the quantity of switches to be purchased each month for January,
February, and March.

Answers

Answer:

bkfsjbsF zc,bvjkhw 4ageyfubhjva kejdsl

Explanation:

The interest rate that is printed on the bond certificate is referred to as any of the following except: Question 6 options: Effective rate. Contract rate. Stated rate. Nominal rate.

Answers

The interest rate that is printed on the bond certificate is referred to as Stated rate.

What is states interest?

Stated interest rate is that interest rate that usually attached to a bond this is decided by the company or the individual.

This money is paid by the person or company that issued the bond.

Therefore, The interest rate that is printed on the bond certificate is referred to as Stated rate.

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How to get a series 7 license

Answers

Take and Pass SIE exam

Secure a Sponsorship

Study for series 7 exam

Pass it :)

Ivan is upset because he feels that Yvette never listens to his ideas in meetings. In their last meeting he offered a suggestion, and Yvette responded by rolling her eyes and ignoring his comment. How should Ivan BEST approach Yvette and communicate with her to try to resolve this conflict?

Answers

A personal dialogue with Yvette asking why she never listens is the best first step to take. When the "why" is established, then using empathy and listening skills, Ivan can attempt to put himself in Yvette's shoes to hear the things he says from her perspective.

This will create understanding and help Ivan to be able to speak in the language that Yvette can understand, thus, resolving the conflict.

What is conflict?

Conflict is defined as a fight and a collision of interests, opinions, or even values. A dispute will always exist in society, regardless of whether the source of the conflict is personal, racial, class, caste, political, or international.

Well-managed conflict results in improved engagement and creativity, whereas badly managed conflict results in increased stress and worry. Jobs that deal with people are more likely to cause conflict.

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define and describe poor service delivery

Answers

Answer:

Poor service delivery means not availing the required services for the amount paid.

Explanation:

the finding Showed that the major causes of poor Service Delivery are Counselor interference are councilor interference and political manipulation, Corruption and lack of accountability and transparency, inadequate citizen participation , poor human resource policy, failure to manage change, lack of employee capacity, poor planning and poor.

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?

Answers

Answer:

≈ 9644 quantity of card

Explanation:

given data:

n = 4 regions/areas

mean demand = 2300

standard deviation = 200

cost of card (c) = $0.5

selling price (p) = $3.75

salvage value of card ( v ) = $ 0

The optimal production quantity for the card can be calculated using this formula below

= u + z (0.8667  ) * б

= 9200  +  1.110926 * 400

≈ 9644 quantity of card

First we have to find u

u = n * mean demand

 = 4 * 2300 = 9200

next we find the value of Z

Z = ( \(\frac{p-c}{p-v}\) )

   = ( 3.75 - 0.5 ) / 3.75   = 0.8667

Z( 0.8667 ) = 1.110926 ( using  excel formula : NORMSINV (0.8667 )

next we find б

б = 200\(\sqrt{n}\) = 400

Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How
many additional meals do you need to sell to breakeven on your advertising?
Ignore all
other restaurant costs except food cost
a) 100 meals
b) 132 meals
c) 143 meals
d) 1000 meals

Answers

Answer:

c) 143 meals

Explanation:

30% of 10 is 3

10-3=7

1000/7=142.857143

round up.

businesses use organisational structure which is based around project but employee stay in their department​

Answers

An organizational structure based around projects while employees remain in their departments combines the advantages of functional specialization and project-oriented collaboration

Businesses that adopt an organizational structure based around projects while keeping employees in their respective departments often follow a matrix or hybrid organizational structure. This approach allows organizations to leverage the benefits of both functional departments and project teams.

In this structure, employees are grouped into functional departments based on their areas of expertise or skills. These departments, such as finance, marketing, human resources, and operations, provide specialized support and resources to various projects within the organization. Each department is typically led by a department head or manager responsible for overseeing the department's operations and ensuring the delivery of functional objectives.

On the other hand, project teams are formed to address specific business objectives or initiatives. These teams are comprised of individuals from different departments who possess the necessary skills and expertise to achieve project goals. The project teams are usually led by a project manager who is responsible for coordinating activities, managing resources, and ensuring the successful completion of the project within the specified timeline and budget.

By adopting this organizational structure, businesses can maximize efficiency and resource utilization. Employees benefit from the stability and specialization offered by their department, allowing them to develop deep expertise in their functional areas. At the same time, they also have the opportunity to contribute their expertise to cross-functional project teams, enabling them to broaden their skills, collaborate with colleagues from different backgrounds, and gain exposure to diverse projects and challenges.

This structure facilitates better communication and coordination between departments, as project teams act as intermediaries, ensuring that information and resources flow seamlessly between the departments and the projects. Additionally, it encourages a culture of innovation and flexibility, as employees have the opportunity to contribute their unique perspectives and expertise to different projects, fostering a cross-pollination of ideas.

Overall, an organizational structure based around projects while employees remain in their departments combines the advantages of functional specialization and project-oriented collaboration, enabling businesses to efficiently execute projects while maintaining the stability and expertise of functional departments.

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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

1. What is the materials quantity variance for March?

2. If Preble had purchased 171,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March?

3. What is the labor rate variance for March?

4. What is the labor efficiency variance for March?

5. What is the labor spending variance for March?

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production

Answers

Labor efficiency variance = (Actual hour * Standard rate) - (Standard hour * Standard rate).

Labor efficiency variance = $404,600 F

What is Labor efficiency variance?

By "efficiency of labor," we mean a worker's ability to produce more or better work, or both, over the course of a given amount of time.

1) Labor efficiency variance = (68,000 * $17) - ((30,600 * 3) * $17)

Labor efficiency variance = $1,156,000 - (91,800 * $17)

Labor efficiency variance = $404,600 F

2) Variance in direct labor worked divided by variance in labor efficiency

Variance in labor costs is $404,600 - $68,000.

Variance in labor costs = $336,600 F

3) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Manufacturing variable overhead cost = 24,000 * $21

$504,000 is the variable manufacturing overhead cost.

4) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Cost of variable overhead in production = 30,600 * $21

$642,600 is the variable manufacturing overhead cost.

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Liz has set up a new employee with Standard user access but has unchecked the Payroll access box. Which part of QuickBooks Online will the new employee not have access to?
A. Bank Registor
B. Employees Tab
C. Contractors Tab
D. Report Center

Answers

If im correct, B would be the right answer

The part of the Quick book online in which the new employee does not have access is the employee tab.

The following information should be considered as relevant:

The payroll access should be given in the employee tab.The new employee does not have access to the employee tab because the access box of the payroll remains unchecked.

Thus, the other options are not correct.

Therefore we can conclude that The part of the Quick book online in which the new employee does not have access is the employee tab.

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Hi, i need help for this assignment from "Essentials of Investments", can you help me? I have to deliver by midnight!! URGENT

Hi, i need help for this assignment from "Essentials of Investments", can you help me? I have to deliver

Answers

60% of the client's investment should be in the risky portfolio and 40% should be in T-bills.

What is the portfolio?

a. To find the proportion y, we can use the following formula:

0.17 = y(0.18) + (1-y)(0.055)

where y is the proportion of the investment in the risky portfolio.

Simplifying and solving for y, we get:

y = (0.17 - 0.055) / (0.18 - 0.055) = 0.60 or 60%

Therefore, 60% of the client's investment should be in the risky portfolio and 40% should be in T-bills.

b. To find the investment proportions in each security, we can multiply the overall investment proportions by the proportion invested in the risky portfolio.

Investment in T-bills: 40%

Investment in Stock A: 0.32 x 0.60 = 0.192 or 19.2%

Investment in Stock B: 0.36 x 0.60 = 0.216 or 21.6%

Investment in Stock C: 0.32 x 0.60 = 0.192 or 19.2%

Therefore, the client's investment proportions in the three stocks and in T-bills are:

T-Bills: 40%Stock A: 19.2%Stock B: 21.6%Stock C: 19.2%

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Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%.

Your risky portfolio includes the following investments in the given proportions:

Stock A 32%

Stock B  36 %

Stock C 32%

Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 17%.

Required:

a. What is the proportion y? (Round your answer to 1 decimal place.)

Proportion y      ---------------%

b. What are your client's investment proportions in your three stocks and in T-bills? (Round your intermediate calculations and final answers to 2 decimal places.)

Security            Investment Proportions

T-Bills    --- ----%

Stock A-----------%

Stock B-----------%

Stock C--------%

The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly increases.
Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run
aggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriums resulting
from this change. Then, indicate what happens to the price level and real GDP (or aggregate output) in the short run and in the
long run.

Answers

Since the stock market increases broadly, this has the effect of expanding the aggregate demand thus, shifting it rightwards. This consequently leads to an increase in price level and real GDP. See the Short Run Effect Graph.

In the Long Run, given that demand shifted to the right, this created an imbalance between demand and expected price levels.

All things being, equal the laws of demand and supply as it affects price trigger an upward adjustment in price hence creating a new equilibrium point. See the Long Run Effect Graph.

What is aggregate demand?

Aggregate demand, also known as domestic final demand in macroeconomics, is the entire demand for final products and services in an economy at any particular time.

It is frequently referred to as effective demand, albeit this phrase is differentiated at times. This is a country's demand for its gross domestic output.

Aggregate demand is estimated by combining consumer expenditure, government and business investment spending, and net imports and exports. AD = C + I + G + Nx is the equation that represents it.

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The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly increases.Use
The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly increases.Use

Question 32
$24,800 is invested for 3 months in a savings account with a rate of 9% simple interest per year.
Find the interest.
$66,960.00
$5,580.00
$6,6960
$558.00

Answers

it’s fail and repeat the grade

L-shaped isoquants describe production systems in which inputs are perfect substitutes. Is this statement correct or not and why?

Answers

Answer: False

Explanation:

An isoquant is a simply a curve or a graphical representation of the inputs that are required to yield identical output levels. An isoquant simply means quantity of output that is constant.

L-shaped isoquants describing production systems in which inputs are perfect substitutes is false. It is used to describe scenarios whereby the inputs in question are complements.

What can a rich person do to benefit society? What things can he invest on that will be good for his community?

Answers

Answer:

Giving money to charity. They can invest in things like communal use like pools etc to help society bond….

Just speaking on my part, maybe build orphanages, hospitals, etc. and just try his best to benefit the world.

Maybe invest on a stock market, you can either lose or get money, let’s say he get some, he could build him own business/charity to help poor/orphans/housewives/people in debt (you get it) and invent on more small stocks for more money.

An economist estimated that the cost function of a single-product firm is

C(Q) = 100 + 20Q + 1502 + 1003

Based on this information, determine:

a. The fixed cost of producing 10 units of output.

b. The variable cost of producing 10 units of output.

c. The total cost of producing 10 units of output.

d. The average fixed cost of producing 10 units of output.

e. The average variable cost of producing 10 units of output.

f. The average total cost of producing 10 units of output.

g. The marginal cost when Q = 10.

Answers

Where C(Q) = 100 + 20Q + 15Q² + 10Q³ is the cost function,

(a) Fixed cost (FC) = $100 (which is fixed irrespective of output level)

(b) Variable cost (VC) = 20Q + 15Q² + 10Q³

When Q = 10, VC = (20 x 10) + (15 x 10 x 10) + (10 x 10³) = 200 + 1,500 + 10,000 = $11,700

(c) Total cost (TC) = FC + VC = $(100 + 11,700) = $11,800

(d) Average fixed cost (AFC) = FC/Q = $100 / 10 = $10

(e) Average variable cost (AVC) = VC/Q = $11,700 / 10 = $1,170

(f) Average total cost (ATC) = TC/Q = $11,800 / 10 = $1,180

(g) Marginal cost (MC) = dC(Q)/dQ = 20 + 30Q + 30Q²

When Q = 10, MC = 20 + (30 x 10) + (30 x 10 x 10) = 20 + 300 + 3,000 = $3,320

What is a cost Function?

The cost function calculates the cheapest way to produce a particular amount of output for some set factor costs. The cost function describes a firm's economic options.

The functional connection between cost and output is referred to as the cost function. It investigates the cost behavior at various levels of production when technology is considered to be constant. It may be stated as follows: C= f(Q) (where C is the cost of production and Q is the quantity of output).

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Full Question:

An economist estimated that the cost function of a single-product firm is:

C(Q) = 100 + 20Q + 15Q² + 10Q³.

Based on this information, determine the following:

a. The fixed cost of producing 10 units of output.

b. The variable cost of producing 10 units of output.

c. The total cost of producing 10 units of output.

d. The average fixed cost of producing 10 units of output.

e. The average variable cost of producing 10 units of output.

f. The average total cost of producing 10 units of output.

g. The marginal cost when Q = 10.

If you have knowledge of a terrorist related activity, how long do you have
to report it to the Financial Intelligence Centre, after becoming aware?

Answers

The time to report terrorist activity to the Financial Intelligence Center, after becoming aware of it, will vary according to local legislation.

How to report terrorist activity?

It is necessary that such crimes are properly reported to the competent authorities, so that legal actions and protection of the homeland are taken as soon as possible.

Therefore, terrorism must be fought in the world, since it is an evil that causes violence, destruction and several other negative consequences that put democracy and the integrity of individuals at risk.

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