During the year, The Dalton Firm had sales of $3,210,000. Cost of goods sold, administrative and selling expenses, and depreciat

Solution and Explanation:

1. MC = Cost of raw materials + Labor cost

MC = 5 plus (10 divide by 2)

MC = $10

2.  TFC = $300

Q = 300,  AFC = TFC/Q = 300 divide by 300 = $1

3.  Nicholas's optimum output is likely to be greater

Rationale: P = MR = $15, MC = $10

With MR exceeding MC, increasing output is advisable until MR equals MC to maximize profits.

4.  His profit-maximizing output would likely increase

Reason: P = MR = $15, MC = $4 + $5 = $9

Since MR > MC, Nicholas should amplify his output until they are equated at the profit-maximizing point.

The intrinsic value of Stock C is $300. The expected dividend to be paid is $3, with a dividend growth rate of 9%. Stock C requires a return of 10%, while Stock D requires a return of 13%. We determine the intrinsic value using the DDM method. The intrinsic value formula is Upcoming Dividend ÷ (Required rate of return - Growth rate). In this case, it calculates to 300, indicating the intrinsic value of Stock C.