subject
Business, 18.08.2021 04:20 kenz2797

The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis. Each of the following, if true, calls into question the chairperson's conclusion EXCEPT
(A) Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.
(B) On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.
(C) Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.
(D) New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.
(E) Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:00
Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.
Answers: 3
question
Business, 22.06.2019 07:00
Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805
Answers: 1
question
Business, 22.06.2019 07:10
Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.
Answers: 1
question
Business, 22.06.2019 12:50
You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400
Answers: 3
You know the right answer?
The subway system in New City has recently been running a severe budget deficit. Analysts have concl...
Questions
question
Mathematics, 13.03.2020 02:22
question
Mathematics, 13.03.2020 02:23
question
Mathematics, 13.03.2020 02:23
Questions on the website: 13722363