What is the predicted change in usage if the price decreases

Assignment Help Financial Management
Reference no: EM131579153

A local utility estimates that natural gas consumption by an average household is given by the following:

Usage = 1.86 - 0.94(Price)

where Usage is the number of mcf consumed and Price measures the price of natural gas per mcf.

What is the predicted change in usage if the price decreases by 0.43 dollars?

Round your answer to one decimal place.

Reference no: EM131579153

Questions Cloud

What is the weighted average cost of capital for firm : What is the WACC (weighted average cost of capital) for this firm? What level of risk (your opinion) might this combination of capital outlay present to firm,
Produces the quantity of output that maximizes their profit : How much profit will this firm earn when it produces the quantity of output that maximizes their profit?
Create a tornado chart for the original unit sales : create a tornado chart for the original unit sales we would see for SF = 1.0 to 2.0 (by 0.2) and A = 5,000 – 25,000 in increments of $5000.
Calculate the slope of a linear function : Calculate the slope of a linear function that describes this relationship. Use the price of natural gas as the independent variable.
What is the predicted change in usage if the price decreases : What is the predicted change in usage if the price decreases by 0.43 dollars?
What nominal interest rate should you charge : What nominal interest rate should you charge? If inflation ends up being 5% are you better or worse off than you anticipated?
What else might affect the interest rate on bond : How does collateral affect interest rate on a bond? How does subordination affect interest rate on bond too? What else might affect the interest rate on bond?
Explain the management skills for technical skills : Explain the management skills for technical skills, interpersonal, conceptual, diagnostics, communication, decision-making and time management.
Uses proceeds to repurchase shares : If the tax rate is 35 percent, what is the value of the company? What will the value be if the company borrows $152,000 and uses proceeds to repurchase shares.

Reviews

Write a Review

Financial Management Questions & Answers

  The same manner as is cash flow from assets

Free Cash Flow is calculated in the same manner as is Cash Flow From Assets - it is the same value.

  One is an ordinary annuity and the other is an annuity due

You are evaluating two annuities. They are identical in every way except that one is an ordinary annuity and the other is an annuity due. Which of the following is FALSE?

  Riskier stock exceed required return on less risky stock

By how much does the required return on the riskier stock exceed the required return on the less risky stock?

  What is the amount of the earnings test penalty

Sam retired as a claims adjuster in 2015 at age 62, and he elected to take SS retirement benefits at that time. He now works as a "storm trooper"for an independent adjusting firm. Sam earned $41,800 in 2016. Same earns $40,800 in 2014. What is the am..

  What is its cost of common equity and wacc

What is its cost of common equity and its WACC?

  What is the equivalent uniform annual cost for system

Springfield is planning to build a new water treatment facility. The first cost of the facility will be $906711. Annual maintenance and repairs will be $16867 for each of the first 5 years, increase to $46917 for each of the next 10 years, and increa..

  Annual rate of return-how much must you invest today

If you believe your mutual fund can achieve a 12.2 percent annual rate of return and you want to buy the car in 15 years, how much must you invest today?

  Should the project be accepted or rejected

Revenues generated by a new product are forecast as follows: Year Revenue 1 $40,000 2 30,000 3 20,000 4 10,000 5 -0- no sales after year 4 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of..

  Spontaneous liabilities will increase at same rate as sales

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,300,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  Perform a cash flow analysis

The industry of medical devices involves a number of monitoring and reconstructive devices. Some of those devices include cardiac and diabetic care as well as hip and knee replacements. The owners of a medical device manufacturing firm called “Joints..

  Describe the net present value method

Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV?

  Compute the price of an american call option

Stock price, that pays no dividend, is $20 and continuous interest is 6% per year. Six month European call on the stock with strike price $18 costs $4. Compute the price of an american call option on the same underlying stock, with same T and K.

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!

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