-Please Refer to the Spreadsheet Above

question 18

Multiple Choice

-Please refer to the spreadsheet above.Selected assumptions are given for preparing pro forma financial statements for 2015.Assume that no new equity will be issued in 2015.When the pro formas are completed,which of the following formulas would correctly give the forecast for shareholders' equity in cell G19?

• A) =F19*B2
• B) =F19*(1 + B2)
• C) =F19 + (1 - B4)*C16
• D) =F19 + B4*C16
• E) None of the above.

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Definitions:

Elastic Demand

Product or resource demand whose price elasticity of demand is greater than 1, so that any given percentage change in price leads to a larger percentage change in quantity demanded. As a result, quantity demanded is relatively sensitive to (elastic with respect to) price.

Price Elasticity

A measure of how sensitively the quantity demanded of a good or service responds to a change in its price.

Supply

The total amount of a product or service available for purchase at any given time.

Demand

is the quantity of a product or service that consumers are willing and able to purchase at various prices at a given time.