User Account

All Pages

What constant rate does the owner believe that profits

Assignment Help Microeconomics
Reference no: EM13315779

You’ve recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000, 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? Does this seem reasonable?

Reference no: EM13315779

Questions Cloud

What would be the magnitude of the mahor principal stress : A normally consolidated clay soil has angle of friction = 20 degrees and effective stress angle of friction = 28 degrees. If a consolidated undrained test is conducted on this clay with an all around pressure of 21.5 lb/in^2
Build a simple text-based adventure game : Build a simple text-based adventure game. You can and probably should use our Missed Connections example as the foundation for your game.
What is its value to the party paying fixed : Under the terms of the swap, 6-month LIBOR is exchanged for 12% per annum (compounded semiannually). The average of the bid-offer rate being exchanged for 6-month LIBOR in swaps of all maturities is currently 10% per annum with continuous compounding
Find elastic modulus of material used to construct the wire : Given a type of material used in a wire with diameter (d = 0.25 in) that stretches 2.3 inches while 80 feet of length is under tensile load of 1800 pounds. Find the elastic modulus of the material used to construct the wire.
What constant rate does the owner believe that profits : You’ve recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000, which have yet to be paid out as dividends.
Critically examine the basic formulations of the harrod : Critically examine the basic formulations of the harrod- domar model of economic growth. how does the harrod model explain the occurrence of trade cycles?
Imposition of stricter environmental protection laws : An agreement reached with the labour union in which wage increases are tied to productivity increases
Calculate the muzzle velocity necessary to hit a pirate ship : While on a vacation to Kenya, you visit the port city of Mombassa on the Indian Ocean. Calculate the muzzle velocity necessary to hit a pirate ship 300 meters from the base of the fort
What are the key points in short run production functions : What are the key points in short run production functions that delineate the three stages of production?Explain the relationship between the law of diminishing return and three stages of production.

Reviews

Write a Review

Microeconomics Questions & Answers

  Brief summary of economic costs

Give a brief summary of economic costs. In the short-run, why might a firm still operate even when there is a loss.

  Pricing and competitive strategies

Pick a good or service you are familiar with. Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should make in its pricing strategy.

  Compute the price elasticity of demand for paint

Compute the price elasticity of demand for paint and show your calculations. Decide whether the demand for paint is elastic, unitary elastic, or inelastic. Explain your reasoning and interpret your results.

  As an individual consumes more of a product within a given

As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield

  Direct and indirect price discrimination scheme

When a firm engages in cost-plus pricing and marginal cost equals industry price, revenue maximization occurs when a firm sells at a price

  Prediction about the advertising rates

In 1989 the Detroit Free Press and Detroit Daily News the only daily newspapers in the city obtained permission to merge under a special exemption from the antitrust laws.

  Define the price elasticity of demand

Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.25. Then we know that a demand is inelastic.

  What are basic choices of strategy

If you (and everyone else) were certain that the exchange rate between dollars and pounds would not change over the next 180 days, what would you do? What would you have at the end of 180 days?

  Why the discussion should state the final effects

Describe what happens to the economy when interest rates are lowered and the economy is at near-full employment using (The Aggregate Demand-Aggregate Supply Model) The end of your discussion should state the final effects

  Calculating profit maximizing output level

What is the total fixed cost for the El Dorado Star? If the total fixed cost increases to $5,000, how many papers should be sold daily for profit maximization?

  Investment on actual versus potential gdp

Use a diagram to show the effects of weak exports and investment on actual versus potential GDP in the Canadian macroeconomy and how might the announced trade deal with the European union provide a source of optimism?

  Total expenditures for health care in the us

Briefly summarize your views on whether the total expenditures for health care in the United States are too high. Provide your rationale, including the criteria you are using for your assessment.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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