Answer:
A) an increase in the price of other kinds of candy
Explanation:
If the price of substitute products (other types of candy) increases, then the suppliers of chewing gum can increase their price without the quantity demanded decreasing. If the decrease in the price of chewing gum is smaller than the increase in the price of substitute products, the quantity demanded will increase.
If there was a price increase of the main ingredients used to produce chewing gum, then the supply curve would shift to the left (option B is wrong).
If the workers signed an agreement that lowered their wages, then the supply curve would shift to the right (option C is wrong).
A decrease in the number of young people in the market would decrease the quantity demanded for chewing gum, which in turn would decrease the equilibrium price (option D is wrong).
A decrease in income would also decrease the quantity demanded, which would in turn decrease the equilibrium price (option E is wrong).
<span>b. brand.......................</span>
Brutus co's leverage ratio is 40%
<h3>What leverage ratio?</h3>
- The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
- The rate that a business is anticipated to charge on average to all of the holders of its securities in order to fund its
Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.
WACC = (5.8% x 25%) + (5.8% x 11% x 6%)
WACC = 3.973
WACC = 40%
Brutus co's leverage ratio is 40%
To learn more about WACC refer to:
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Answer:
A) $200,000 loss recognized by Jean and a basis in the land of $200,000 to Billie
Explanation:
The computation is shown below:
For loss recognized, the amount would be
= Land basis - fair value of land
= $400,000 - $200,000
= $200,000
And, the basis in the land should be equal to the fair value of the land i.e $200,000
Hence, the correct option is A
By dividing the fair value from the land basis we can get the loss recognized
The role of accounting is to provide you and any other stakeholders with financial information about the company, such as sales revenue, the cost of benefits and the amount you owe your suppliers. Without the information from your accountants, you can't make good financial decisions for your business.