How the profits will grow

Assignment Help Microeconomics
Reference no: EM13175579

You've recently learned that the company where you work is being sold for $315,000. The company's income statement indicates current profits of $21,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and that the interest rate will remain constant at 10 percent, at what constant rate does the owner believe that profits will grow?

Reference no: EM13175579

Questions Cloud

Define total lendable deposits in the banking system : Assume that all banks in the banking system have a 10% reserve requirement. Further, assume that all banks in the banking system are fully loaned up both before and after Joe makes his deposit.
Explain direct impact to the economy : Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.
Explain key microeconomics terminology : determine optimal consumer buying decisions in the context of utility theory. compare and contrast optimal pricising and output decisions in various market structures. apply supply and demand theory to both prodcut and factor markets.
What activities involved in creating a product : An order written by the exporter instructing the importer, or their agent, to pay a specified amount of money at a specified time is a:  Note Payable,Draft;Promissory Note;Check.
How the profits will grow : Assuming the company will remain a "going concern" indefinitely and that the interest rate will remain constant at 10 percent, at what constant rate does the owner believe that profits will grow?
Define protectionist policies : Define protectionist policies and describe how the imposed restrictions work and analyze the impact of such policies. Find three public policies framed by the government that have posed restrictions on international trade.
The cost of producing pastries and sandwiches in northland : The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced.
State what is the total pressure of the mixture : 525 mm of Hg; neon, 65 mm of Hg, and nitrogen, 250 mm of Hg. What is the total pressure of the mixture?
What is the volume in liters of the oxygen gas : Oxygen at 25 degrees C and a pressure of 1000 torr. At STP 1 mol of gas occupies 22.4 L What is the volume in liters of the oxygen gas in the cylinder?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What is the loss minimizing output level

Global Investment Group operates in a perfectly competitive industry with the following Cost and Revenue data: What is the loss minimizing output level for the firm?

  Determine what happens in the new equilibrium

Determine what happens in the new equilibrium. Does the individual buy more or less of OG. Does the individual buy more or less of HC. Explain why.

  What kind of externality is associated with services

In order to bring about a socially desirable quantity of landscaping service, what should the government do? Explain in words and show the effect of the government action in a graph.

  Explain consumption and saving

Explain the relationship among household disposable income, consumption, and savings. What is Marginal Propensity to Consume (MPC) and what does an MPC of 0.9 tell us about consumption and saving?

  Determine the breakeven output

Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.

  Describes the steady state of economy

Express output per worker (y=Y/L) as a function of capital per worker and the natural rate of unemployment and write an equation that describes the steady state of this economy.

  Production function-perfect substitutes

Having a little trouble setting this problem up. Would appreciate the detailed set up and solution. A production function has 2 inputs - labor and capital. Both are perfect substitutes. Existing technology permits 1 machine to do work of 3 workers..

  At what price would the firm earn a normal profit

Construct a table showing the average variable, average total, and marginal costs of paper cup production. Show your work or embed an Excel spreadsheet into your file showing the formulas you used.

  Profit maximizing decision perfectly competitive firm

Can you please explain the profit maximizing decision the perfectly competitive firm makes in the short run and describe why this firm can make profits in the short run, but profits aren't possible in the long run.

  Cost of production is fixed in the short run

For many corporations, a major portion of the cost of production is fixed in the short run. Should these very large fixed costs be ignored when the executives are making output and pricing decisions?

  Distinguish between explicit and implicit costs

Distinguish between explicit & implicit costs, giving example of each and what are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost?

  Social cost-benefit analysis

Briefly describe the major categories of expected benefits and expected costs from undertaking the project and explain how and where the value of human lives saved or lost might enter this analysis, and explain whether all of these effects are addr..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd