Answer:
D
Explanation:
because when the producer produce the product the amount of product is more then obviously it will create a new product for new market
How do you determine opportunity cost
Answer:
See below
Explanation:
Opportunity cost is described as the foregone benefit by preferring one option over others. Opportunity cost arises when a choice is being made from several possible alternatives. When the preferred option is selected, the benefits from the other alternatives are forfeited.
Opportunity cost is determined by evaluating the forfeited benefits. The benefits from the next best alternative are the opportunity costs. In other others words, the foregone advantages of the option ranked second is the opportunity cost.
A Market share is usually stated as a
Answer:
stock
Explanation:
a stock is a a share of a company
You are an economics professor teaching large sections of Principles courses this semester. Within the first week of class,
several students have approached you with concerns about exam and homework due dates. They fear they won't do well
because the due dates for your class conflict with the dates for their other classes. You want to allocate exam and homework
due dates to the days most valued by students, but sifting through the opinions of hundreds of students presents a challenge.
The MOST efficient allocation would result if you:
design a predictions market for students to designate when they think the dates will be.
b. create an internal market for students to bid for their preferred dates.
C.
use your centralized power as a professor to assign the dates without student input.
d. determine that you have a knowledge problem when assigning dates
The MOST efficient allocation of exam and homework due dates for students who have concerns due to conflicting schedules with other classes is to create an internal market for students to bid for their preferred dates.The correct answer is option-b.
A market is the most efficient mechanism for allocating goods and services according to the preferences of consumers. Students who have conflicting schedules can bid for their preferred exam and homework due dates through an internal market.
This method has the advantage of providing the exam and homework due dates to those who are willing to pay the most for them. By using the internal market, the professor can allocate the dates in the most efficient manner without sifting through the opinions of hundreds of students.
This method is also fair as it gives students the opportunity to choose their preferred dates based on their schedule constraints, and it reflects the value that students place on certain exam and homework due dates.
Therefore, the correct answer is option-b.
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J&E Enterprisesi s considering and investment which produces no cash flows for the first year. In the second year, the cash inflow is $47,000. This inflow will increase to $198,000 and then $226,000 for the following two years, respectively, before ceasing permanently. The initial investment will cost $318,000. The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted. Why or why not?
Year Cash flow Discounted cash flo Cumulative cash flo
1 $0 $0.00 $0.00
2 $47,000 $35,321.72 $35,231.72
3 $198,000 $128,504.77 $163,736.49
4 $226,000 $126,993.21 $290,729.70
Answer:
No
The amount of cumulative discounted cash flows is less than the the amount invested in the project. This means that the project is unprofitable.
Explanation:
The discounted cash flow method calculates how long it takes to recover the amount invested in a project from its cumulative discounted cash flow.
A project should be accepted if the amount invested in the project is recovered from the cumulative discounted cash flow within the period specified by the firm.
The cumulative discounted cash flow, $290,729.70 is less than the amount invested $318,000. So the project shouldn't be accepted.
I hope my answer helps you
Write a 750-1,000 word paper that includes the following criteria: Describe the top three internal and top three external risks currently threating PHI data within your selected organization. Explain how risk assessments are conducted within the organization. Discuss who conducts these assessments and with what frequency. How do these assessments mitigate the risks you have identified
Answer:
as
Explanation:
ss
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? percent b. What is the Herfindahl index for the hamburger industry in this town? c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = percent Herfindahl index =
Answer:
a= 75%
b= 1702
c= 94% , 4334
Which is an example of a good URL?
A.
http://www.sedl.org/abcd.html
B.
http://www.sedl.org/expertise/current_projects.html
C.
http://www.sedl.org/some_text_here_which_is_a_part_of_the_URL_and_is_a_resource_identifier.html
D.
http://www.sedl.org/expertise/currentinterestingprojects.html
Answer:
The example of a good URL is ".gov and .org¨
Explanation:
http://www.sedl.org/expertise/current_projects.html is an example of a good URL. Therefore option B is correct.
What is a URL?
An Internet resource may be found using a URL (Uniform Resource Locator), a special identifier. It is additionally known as a web address. URLs contain several components, such as a protocol and domain name, which instruct a web browser on how and from where to retrieve a resource.
In addition to the resource name, the URL also includes the name of the protocol required to access the resource. The protocol to utilize as the main access medium is specified in the first portion of a URL. The location of the resource is indicated by its IP address, domain name, and sometimes a subdomain in the second portion.
Only the ASCII character set may be used to send URLs over the Internet. The URL must be changed into a proper ASCII format since URLs frequently contain non-ASCII characters. Unsafe ASCII characters are replaced by a "%" and two hexadecimal digits in URL encoding. Spaces are not permitted in URLs.
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Irfan runs a small business. His business’s total liabilities amount to $200,000. His net profit for the latest accounting period is $50,000. The total value of all the business assets comes to $600,000. What is the debt to asset ratio in the case of Irfan’s business? The debt to assets ratio of Irfan’s business, to two decimal places, is percent.
Small businesses are either services or retail operations like grocery stores, medical stores, tradespeople, bakeries, and small manufacturing units.
What is the meaning of Small businesses?Small companies typically offer services or are retail establishments like grocery stores, pharmacies, tradesmen, bakeries, and micro-manufacturing facilities. Small businesses are privately held companies that need less equipment, labor, and cash than larger companies.
The most straightforward type of business is a sole proprietorship. Small businesses are distinct legal entities such as corporations, partnerships, and sole proprietorships that have fewer employees and/or lower yearly income than a regular-sized company. Businesses are considered "small" if they are eligible for government assistance and favorable tax treatment.
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Question 1
Since" we can't always get what we want", we have to make
Answer:
compromises
have a nice day!
A fast internationalization strategy for better generation has some associated risks. What are these risks?
Answer: Political risks eg High taxes
Economic risks eg fluctuation of exchange in currency.
Please see below for further explanation.
Explanation:
Internationalization strategy is the plan by an organization to expand beyond the domestic market to become globally visible in another country or countries market.
The risks associated Associated when a company, better generation tries to expand globally include
1.)Political risks:Political risk occurs when target countries policies change or fluctuates in such a way to negatively affect a business.
Some of the political risks include
---Instability in foreign country's governments due to corruption
---Government regulations eg High taxation, High tariff quotas
-----Trade barriers etc.
2.Economic Risks here refers to the conditions in the foreign nation's economy that affect a company's financial gains.
Some of the Economic risk include
-fluctuations in the value of currencies exchange.
-Inflation
-Quality of basic infrastructure in terms of electricity, transportation, accessible to water etc as the case may be.
--Labor and differences in wages.
do some countries benefit more than others from globalization?
Answer:
Globalization has benefited an emerging "global middle class," primarily people in China, India, Indonesia, and Brazil, as well as the world's top 1%. People at the bottom of the income scale, and the lower-middle class in rich countries, suffered.
Explanation:
I wonder why a company would issue new shares if the stocks when their intrinsic value is low.
When there is strong investment demand, the market value is usually higher than the intrinsic value, resulting in possible overvaluation. If there is a lack of investment demand, the company may be undervalued.
What exactly is intrinsic value?An asset's intrinsic value is a measure of its worth. This metric is determined by an objective calculation or a complex financial model. The intrinsic value of an asset differs from its current market price. Comparing it to the current price, on the other hand, can help investors determine whether the asset is undervalued or overvalued.
Cash flow is used in financial analysis to determine the intrinsic, or underlying, value of a company or stock. In option pricing, intrinsic value is defined as the difference between the option's strike price and the current market price of the underlying asset.
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Which of the following statements is correct? (Pick One)
If supply decreases and demand decreases, equilibrium price is indeterminate.
If supply decreases and demand decreases, equilibrium price will rise.
If supply decreases and demand decreases, equilibrium price will fall.
If supply decreases and demand decreases, equilibrium quantity will rise.
If supply decreases and demand remains constant, equilibrium price is indeterminate.
The correct statement is that If supply decreases and demand decreases, the equilibrium price is indeterminate.
What is an equilibrium price?In economics, the term "equilibrium" refers to the state in which market supply & demand balance each other and because of this, the prices become more stable. Under this, an equilibrium price happens in a situation where the supply of goods matches demand and when a major index experiences a period of consolidation or sideways momentum.
Therefore, we will say when the forces of supply and demand are relatively equal, the market is in a state of equilibrium.
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Keyser Mining is considering a project that will require the purchase of $980,000 in new equipment. The equipment will be depreciated straight-line to a zero book value over the 7-year life of the project. The equipment can be scraped at the end of the project for 5 percent of its original cost. Annual sales from this project are estimated at $420,000. Net working capital equal to 20 percent of sales will be required to support the project. All of the net working capital will be recouped. The required return is 16 percent and the tax rate is 35 percent. What is the amount of the after-tax salvage value of the equipment?
A. $17,150
B. $31,850
C. $118,800
D. $237,600
E. $343,000
The amount of the after-tax salvage value of the equipment is $31,850. Option B
How to find the amount of the after-tax salvage value of the equipment?To determine the after-tax salvage value of the equipment, we need to calculate the salvage value at the end of the project and then apply the tax rate.
Therefore, the salvage value is:
Salvage Value = 5% of $980,000
= 0.05 * $980,000
= $49,000
The tax rate is given as 35 percent, so we can calculate the after-tax salvage value as:
After-Tax Salvage Value = Salvage Value - Tax on Gain
= $49,000 - (Tax Rate * Gain)
= $49,000 - (0.35 * $49,000)
= $49,000 - $17,150
= $31,850
Therefore, the amount of the after-tax salvage value of the equipment is $31,850.
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A good filing system shares all of the common characteristics of a _________.
a.
Highway -- files often travel to different destinations
b.
Database -- it must store information for easy access and retrieval
c.
Business -- each folder must have a unique structure to serve different clients
d.
Library -- all files, whether they are used or not, must be in one location
Answer:
I'm pretty sure that the answer is option b (Database).
What is a class action suit?
OA. When a lawsuit is dismissed by a judge because the court does
not have proper jurisdiction
B. When a lawsuit involves not only one punishment, but an entire list
of consequences
C. When a group of consumers that suffer similar damages bring a
case against a business together
D. When an individual brings a lawsuit against all businesses in an
industry together
it’s c
A class action suit is a case, brought up by a group of consumers that suffer similar damages, against a business together. Hence, the correct answer will be an option(c).
Consumers, suffering a similar loss caused by a business, come forward and file a lawsuit together against the same business. This type of lawsuit is known as a class action suit. It is also known as Representative action. If the group wins the lawsuit, it will be compensated for the damages caused but if they lose the lawsuit, it will not receive any type of financial compensation.
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Distinguish between serial activities and concurrent activities why do we seek to use concurrent activities as a way to shorten the project length
Answer and Explanation:
Serial activities are activities that are performed one after the other. In serial activities, one step in a job is finished before the other step starts. In other words more time may be spent as against concurrent activities whereby the two steps in a job can be performed at the same time such that the second step can start while the first step of the job is in progress. Managers prefer concurrent activities because it saves time as jobs are completed faster when steps can be performed "concurrently"
Low interest rates result in:
a. Facilitating a greater supply of money for borrowers
b. Reducing the cost of financing the nfedral budget deficit
c. Encouraging a higher rate of savings
d. Bringing more investment avenues
E. Improve the standard kof living
Answer:
a. Facilitating a greater supply of money for borrowers
Explanation:
Interest rates represent the cost of borrowing money. Low interest implies a reduced cost of borrowing money. Households and firms will be encouraged to borrow more when interest rates are low.
Increased borrowing results in an increase in consumer spending and investments. The amount of money supply in the economy increases as individuals and businesses borrow.
When must you wash your hands
Answer:
Before, during, and after preparing food. Before and after eating food. Before and after caring for someone at home who is sick with vomiting or diarrhea. Before and after treating a cut or wound.
wash your hands before and after always and preferably with antibacterial soap
Which sentence best explains the mistake Maggie made? Her mortgage payments are high, and some months, she earns barely enough to cover the essentials. Because homeowner's insurance was an added expense, she considered taking her chances and not buying it. However, the bank made it clear that this was not an option... When the agent returned on the line, he sounded like a different person. "Ma'am, I'm sorry, but according to our records, you do not have flood insurance protections in your policy. We do offer flood insurance as an add-on to basic homeowner's, but at additional cost." O She failed to properly assess her risk of storm damage. She did not always make her insurance payments on time. O She refused to share the risk of living in an area known for hurricanes. O She should have worked with a different bank to purchase her home.
Answer:
She failed to properly assess her risk of storm damage.
Explanation: Edge 2021
Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:
Crazy Mountain Outfitters Co.
Unadjusted Trial Balance
April 30, 2019
Debit Balances Credit Balances
Cash 11,400
Accounts Receivable 72,600
Supplies 7,200
Equipment 112,000
Accounts Payable 12,200
Unearned Fees 19,200
John Bridger, Capital 137,800
John Bridger, Drawing 10,000
Fees Earned 305,800
Wages Expense 157,800
Rent Expense 55,000
Utilities Expense 42,000
Miscellaneous Expense 7,000
475,000 475,000
For preparing the adjusting entries, the following data were assembled:
a. Supplies on hand on April 30 were $1,380.
b. Fees earned but unbilled on April 30 were $3,900.
c. Depreciation of equipment was estimated to be $3,000 for the year.
d. Unpaid wages accrued on April 30 were $2,475.
The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.
Required:
1. Journalize the adjusting entries necessary on April 30. 2019.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters after the adjusting entries.
4. Determine the effect of the adjusting entries on Retained Earnings.
Answer:
1. Journalize the adjusting entries necessary on April 30. 2019.
Dr Supplies expense 5,820
Cr Supplies 5,820
Dr Accounts receivable 3,900
Cr Earned fees 3,900
Dr Depreciation expense 3,000
Cr Accumulated depreciation 3,000
Dr Wages expense 2,475
Cr Wages payable 2,475
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
unadjusted income statement
Fees Earned $305,800
Wages Expense ($157,800 )
Rent Expense ($55,000 )
Utilities Expense ($42,000 )
Miscellaneous Expense ($7,000)
Net income $44,000
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters after the adjusting entries.
adjusted income statement
Fees Earned $309,700
Wages Expense ($160,275 )
Rent Expense ($55,000 )
Utilities Expense ($42,000 )
Depreciation expense ($3,000)
Miscellaneous Expense ($12,820)
Net income $36,605
4. Determine the effect of the adjusting entries on Retained Earnings.
Since net income decreases after the adjusting entries, retained earnings will also decrease. Retained earnings are increased by the amount of net income.
Why is it important to always use the same fiscal periods year after year
when creating financial documents?
A. It allows for the use of different forms.
B. It allows for accurate comparisons over time.
OC. You don't have to remember due dates.
D. It allows variation in the length of fiscal periods.
The consistent use of the same fiscal periods can provide a solid foundation for accurate and reliable financial reporting and decision-making. Option B
It is important to always use the same fiscal periods year after year when creating financial documents because it allows for accurate comparisons over time. By consistently using the same fiscal periods, financial statements such as income statements, balance sheets, and cash flow statements can be easily compared year after year. This helps to identify trends in revenue and expenses, as well as track progress towards financial goals.
Using the same fiscal periods also helps to ensure consistency and accuracy in financial reporting. It reduces the risk of errors and discrepancies that may arise if different fiscal periods are used from year to year. This is especially important for companies that are publicly traded and must adhere to strict financial reporting regulations.
Furthermore, using the same fiscal periods can simplify the process of budgeting and forecasting. It allows for historical data to be used as a basis for future projections, making it easier to anticipate future expenses and revenue.
While using the same fiscal periods does not necessarily eliminate the need to remember due dates for tax filings and other financial reporting requirements, it can help to streamline the overall process of financial management. Option B
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Calculate the Net Present Value Weather Co has recently taken over many smaller companies, which it now runs as separate divisions. One division, Thunder, has just developed a new product called Lightning and is now considering whether to put it into production. The following information is available:
(i) Costs incurred in the development of Lightning amount to $480,000.
(ii) Production of Lightning will require the purchase of new machinery at a cost of $2,400,000, payable on the first day of the new financial year. The machinery is specific to the production of Lightning and will be obsolete and valueless when production ceases. The machinery has a production life of four years and a production capacity of 30,000 units per annum.
(iii) Production costs of Lightning (at year 1 prices) are estimated as follows:
Direct material $8
Direct labour $12
Variable overheads $ 12
In addition, incremental fixed production costs (at year 1 prices), including straight-line depreciation on plant and machinery, will amount to $800,000 per annum.
(iv) The selling price of Lightning will be $80 per unit (at year 1 prices). Demand is expected to be 25,000 units per annum for the next four years.
(v) The consumer price index is expected to be at 5% per annum for the next four years and the selling price of Lightning is expected to increase at the same rate. Annual inflation rates for production costs are expected to be as follows:
Direct materials 4%
direct labour 10%
variable overheads 4%
Fixed costs 5%
(vi) The company's cost of capital in money terms is expected to be 15%. Direct materials Direct labour Variable overheads
(vii) Corporation tax is 30% and is payable one year in arrears. Tax-allowable depreciation of 25 per cent on a reducing balance is available on capital expenditure.
(viii) This investment will also require an investment in working capital of $500,000 payable at the start of the project.
This is not expected to change during the life of the investment. Unless otherwise specified, all costs and revenues should be assumed to arise at the end of each year.
The financial manager has recommended that a discounted cash flow method of project appraisal be used, but some members of the board are reluctant to do this.
Answer: Net Present Value (NPV) = -$2,400,000 + [25,000 x $80 x (1 - 0.30)]/1.15 - [$480,000 + ($800,000 x 4)]/1.15^4 + ($500,000/1.15^4)
NPV = -$2,400,000 + $1,946,739.13 - $2,719,565.22 + $385,217.39
NPV = -$1,077,608.70
Explanation:
Based on this analysis, the Lightning project has NPV of -$2,279,126.25 which is negative. Hence, the project is not economically viable and should not be pursued.
How to calculate the Net Present ValueTo calculate the net present value (NPV) of the Lightning project
Firstly, estimate the cash flows associated with the project and discount them to their present values using the company's cost of capital.
To calculate the annual cash inflows and outflows associated with the project.
The annual revenue from selling 25,000 units of Lightning at a price of $80 per unit is:
25,000 x $80 = $2,000,000
The annual production costs can be calculated as follows:
Direct material: 25,000 x $8 = $200,000
Direct labour: 25,000 x $12 = $300,000
Variable overheads: 25,000 x $12 = $300,000
Incremental fixed costs: $800,000
Total annual production costs: $1,600,000
To calculate the annual cash flow, subtract the annual production costs from the annual revenue:
Annual cash inflow: $2,000,000 - $1,600,000 = $400,000
In addition to the annual cash inflow, consider the initial investment in the project.
This includes the development costs of $480,000, the purchase of new machinery for $2,400,000, and the investment in working capital of $500,000. The total initial investment is:
$480,000 + $2,400,000 + $500,000 = $3,380,000
To calculate the tax-allowable depreciation on the capital expenditure, The value of the machinery after each year can be calculated as follows:
Year 1: $2,400,000 x (1 - 0.25) = $1,800,000
Year 2: $1,800,000 x (1 - 0.25) = $1,350,000
Year 3: $1,350,000 x (1 - 0.25) = $1,012,500
Year 4: $1,012,500 x (1 - 0.25) = $759,375
The tax-allowable depreciation for the first year is:
$2,400,000 - $1,800,000 = $600,000
The tax-allowable depreciation for the remaining years is calculated in the same way.
Using the information above, calculate the annual cash flows and the NPV of the project as follows:
Year 0:
Initial investment: -$3,380,000
Year 1:
Cash inflow: $400,000
Tax-allowable depreciation: $600,000 x 30% = $180,000
Tax savings: $180,000 x 30% = $54,000
Net cash flow: $400,000 - $54,000 = $346,000
Discounted cash flow: $346,000 / (1 + 15%\()^1\) = $300,870.13
Year 2:
Cash inflow: $400,000
Tax-allowable depreciation: $1,800,000 x 25% x 30% = $135,000
Tax savings: $135,000 x 30% = $40,500
Net cash flow: $400,000 - $40,500 = $359,500
Discounted cash flow: $359,500 / (1 + 15%\()^2\) = $281,880.18
Year 3:
Cash inflow: $400,000
Tax-allowable depreciation: $1,350,000 x 25% x 30% = $101,250
Tax savings: $101,250 x 30% = $30,375
Net cash flow: $400,000 - $30,375 = $369,625
Discounted cash flow: $369,625 / (1 + 15%\()^3\) = $260,775.85
Year 4:
Cash inflow: $400,000
Tax-allowable depreciation: $1,012,500 x 25% x 30% = $75,938
Tax savings: $75,938 x 30% = $22,781.40
Net cash flow: $400,000 - $22,781.40 = $377,218.60
Discounted cash flow: $377,218.60 / (1 + 15%\()^4\) = $257,347.59
Total discounted cash flow: $300,870.13 + $281,880.18 + $260,775.85 + $257,347.59 = $1,100,873.75
To calculate the NPV, subtract the initial investment from the total discounted cash flow:
NPV = $1,100,873.75 - $3,380,000 = -$2,279,126.25
Based on this analysis, the Lightning project has a negative NPV of -$2,279,126.25. Therefore, the project is not economically viable and should not be pursued.
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a firefighter is injured by smoke inhalation while fighting an accidental fire at a local resident's house. is the homeowner liable for negligence if the firefighter sues? yes, because the homeowner breached a duty of reasonable care to the firefighter. no, because the firefighter was acting unreasonably by entering a burning home. no, because the homeowner had no duty of care to the firefighter. yes, but only if causation can be established.
Answer:
Depends. Answer Below
Explanation:
It is possible that the homeowner could be liable for negligence if the firefighter sues. In general, homeowners have a duty to take reasonable care to prevent accidents or injuries that may occur on their property. If a firefighter is injured while fighting a fire at a homeowner's house, and it can be shown that the homeowner was negligent in some way (for example, by failing to properly maintain their property or by failing to warn the firefighter of known hazards), then the homeowner may be held liable for the injuries sustained by the firefighter.
Assume that Bethany acquires a competitor's assets on March 31st. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is Bethany's amortization deduction for the current year? (Round final answer to the nearest whole number.)
Answer:
$1,389
Explanation:
Tangible assets are depreciated, not amortized. Only the $25,000 goodwill will be amortized.
A §197 intangible asset can be amortized over a 15 year period that starts on the month that the intangible asset was acquired. In this case, the amortization expense will include March, so we need to calculate amortization for 10/12 of a year.
The amortization per year = $25,000 / 15 years = $1,667
amortization for year one = amortization per year x number of months = $1,667 x 10/12 = $1,389
I knew their support was conditional even though they seemed friendly (use unconditional)
Answer:
I know their support was not unconditional though they seem friends.
Explanation:
If you are the Bhutanese student then I am sure this question came in 2017 BHSEC. Best of luck.
Using the Base Case, calculate the annual sales growth for 2020E using a weighted-moving average of the past three years' growth rates, with the most recent year given a weight of 3, the next given a weight of 2 and the oldest given a weight of 1. What is the growth rate
The growth rate in investment is the compounded annualized growth of the revenue for a company, dividends, etc.
What is growth rate?Your information is incomplete as the figures or data aren't given. Therefore, an overview will be given. It should be noted that a growth rate simply means the percentage change of a variable within a period of time.
The growth rate in investment is the compounded annualized growth of the revenue for a company, dividends, retail sales, GDP etc.
To calculated the growth rate, subtract past value from current value and divide that number by the past value.
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Answer:
Explanation:
7.6%
Why does bankruptcy make it difficult to obtain loans? a. it causes a loss of assets., b. it harms a person's credit report., c. it relieves a person of their debts., d. it increases the cost of insurance
Option A is the best choice because it results in a loss of assets.
What occurs when a person declares bankruptcy?A individual or business who is unable to pay off their outstanding debts may file for bankruptcy. A petition is filed, either on behalf of the debtor, which is more often, or on behalf of creditors, which is less frequent, to start the bankruptcy process.
A corporation is in bankruptcy when it is unable to cover its daily expenses as a result of significant losses. Every area of the economy is susceptible. If a large financial institution is affected, it will be challenging for that institution to offer new or fresh loans since they lack the funds to do so. As a result, all new businesses that take out loans will suffer indirectly.
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Price a 2-yr 4% semiannual coupon bond with a par value of $1000 and the yield to maturity (discount rate) is 4.51% per annum.
Round the answer to the nearest 2 decimal points. If your answer is $12.345, enter "12.35" in the answer box.
The price of the 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum is approximately $932.08 (rounded to the nearest 2 decimal points).
To price a 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum, we can use the formula for the present value of a bond. The bond pays semiannual coupons, so we need to calculate the present value of each coupon payment and the present value of the par value at maturity.
Using the given values:
Coupon payment = $20
Yield to maturity = 4.51% per annum
Number of coupon payments per year = 2
Par value = $1000
Number of periods until the coupon payment = 1 (for each semiannual coupon payment)
PV of coupon payment = $20 / (1 + (4.51% / 2))^1 + $20 / (1 + (4.51% / 2))^2
PV of coupon payment = $19.14 + $18.36
PV of coupon payment = $37.50
PV of par value = $1000 / (1 + (4.51% / 2))^4
PV of par value = $894.58
Bond price = PV of coupon payments + PV of par value
Bond price = $37.50 + $894.58
Bond price = $932.08
Therefore, the price of the 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum is approximately $932.08 (rounded to the nearest 2 decimal points).
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1. Suppose the Consumption function is given as C = 1500 +0.75Yd. Based on the information, please answer the following questions. A. What is Autonomous consumption? B. What is Marginal Propensity to Consume (MPC)? C. Draw the graph of consumption function? D. Calculate Marginal propensity to save (MPS)? E. Drive saving function F. Draw the graph of saving function. G. What will be saving if the disposable income is 10,000 birr?
A. Autonomous consumption is 1500.
B. MPC in this case is 0.75.C.
C.The graph of consumption function is a straight line with slope MPC and passes through 1500 on y-axis.
D. MPS in this case is 0.25.
E. S = Yd – (1500 + 0.75Yd) = 0.25Yd – 1500.
F. The graph of saving function is a straight line with slope MPS and passes through -1500 on y-axis.
G. Savings are 1750 birr when disposable income is 10,000 birr.
Given that Consumption function is C = 1500 + 0.75Yd, where C is consumption expenditure, Yd is disposable income, 1500 is autonomous consumption expenditure, and 0.75 is the marginal propensity to consume (MPC).
A. Autonomous consumption is the consumption expenditure made by households when disposable income is zero. In this case, autonomous consumption is 1500.B. Marginal Propensity to Consume (MPC) is the fraction of change in consumption expenditure resulting from a change in disposable income. MPC is equal to the change in consumption expenditure divided by change in disposable income. MPC in this case is 0.75. C. The graph of consumption function is a straight line with slope MPC and passes through 1500 on y-axis D. Marginal propensity to save (MPS) is the fraction of change in savings resulting from a change in disposable income. MPS is equal to the change in savings divided by change in disposable income. MPC + MPS = 1. Therefore, MPS in this case is 0.25.E. Saving function is given by S = Yd – C, where S is savings. Substituting C = 1500 + 0.75Yd, we get S = Yd – (1500 + 0.75Yd) = 0.25Yd – 1500.F. The graph of saving function is a straight line with slope MPS and passes through -1500 on y-axis.G. If disposable income is 10,000 birr, then consumption expenditure is C = 1500 + 0.75Yd = 1500 + 0.75(10,000) = 8250 birr. Savings are S = Yd – C = 10,000 – 8250 = 1750 birr. Therefore, savings are 1750 birr when disposable income is 10,000 birr.For more such questions on Autonomous consumption
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