A. 25% of the monthly returns are below or equal to the first quartile. 50% of the monthly returns are below or equal to the second quartile. 75% of the monthly returns are below or equal to the third quartile.
Answer:
2.33; the demand for movies is elastic
Explanation:
Below is the calculation for price elasticity of demand:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
Here, the change in quantity demanded is defined as
= Q2 - Q1
= 30 - 15
= 15
The average quantity demanded is
= (30 + 15) ÷ 2
= 22.50
The change in price is computed as
= P2 - P1
= $8 - $6
= $2
And the average price is
= ($8 + $6) ÷ 2
= 7
Thus, after computing, the result for price elasticity of demand is 2.33
As we were not instructed on the method for calculation, the mid-point formula was utilized.
From this calculation, we deduce that the demand for movies is indeed elastic.
Option (B) is the right choice. Explanation: Calculating the depreciable basis involves subtracting residual value from cost, which here results in $190,000 - $10,000, giving us $180,000. The usage is identified as 75,000 bolts. The first-year figures indicate the book value starts at $190,000, while 15,000 bolts were created, translating the depreciation expense into 15,000 multiplied by $2.40, equal to $36,000. Subsequently, the ending book value becomes $190,000 minus $36,000, resulting in $154,000. For Year 2, using 19,000 units leads to a depreciation expense of $45,600. The concluding book value for Year 2 becomes $108,400, while accumulated depreciation for both years culminates at $81,600.
Response: a. $18,000
Clarification:
Cumulative Preferred Shares are types of shares whereby the company consistently pays Preferred dividends and if it cannot do so in any given year, the unpaid amount accumulates until they can pay it later.
In the question posed, the dividends owed to Preferred Shares are calculated as follows:
= 4% * 200,000
= $8,000
In the first year, $8,000 was allocated for dividends.
= 8,000 - 8,000
= 0
This implies that there are no preferred dividends owed from Year 1.
In Year 2, $18,000 was declared for dividends,
= 18,000 - 8,000
= $8,000
This indicates that in Year 2, the company managed to fulfill its Preferred dividends and still had funds available to distribute to Common Shareholders.
In Year 3, $24,000 was dedicated to dividends.
= 24,000 - 8,000
= $16,000
Therefore, in year 3, the company had enough funds to cover its Preferred Dividend commitments, meaning it paid out all of the $8,000 due to the Preferred Shareholders.
