Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is 6% (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Answer:
Price of bond = $982.63
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Microhard can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 6%/2 = 3 % per six months
Total period to maturity (in months)
= (2 × 21) = 42 periods
PV of interest =
45 × (1- (1+0.03)^(-21)/0.03)= 693.6
Step 2
PV of Redemption Value
= 1000 × (1.03)^(-21×2) =288.95
Price of bond
= 693.6 + 288.95 =982.63
Price of bond = $982.63
Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has four years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds
Answer:
Laurel bond % change = -6.6%
Hardy bond % change = -16.3%
Explanation:
current bond price $1,000
interest rate 7%
Laurel bond matures in 4 years, 8 semiannual payments
Hardy bonds matures in 15 years, 30 semiannual payments
if market interest increases to 9%
Laurel bond:
$1,000 / (1 + 4.5%)⁸ = $703.19
$35 x 6.59589 (annuity factor, 4.5%, 8 periods) = $230.86
market price = $934.05
% change = -6.6%
Hardy bond:
$1,000 / (1 + 4.5%)³⁰ = $267.00
$35 x 16.28889(annuity factor, 4.5%, 30 periods) = $570.11
market price = $837.11
% change = -16.3%
20. A country with a surplus of oil but limited access to fresh water decides to trade resources with a country w
exchange these resources without any money involved. This exchange of products is best described as
O A. countertrading.
O B. mutual import.
O C. dual export.
O D. resource
Answer:
The correct answer is A. This exchange of products is best described as countertrading.
Explanation:
In international trade, countertrading is the process by which countries trade with each other through the exchange of products, as in barter, and not through the use of money to pay for such goods or services. That is, a country gives a series of goods that another country needs, in exchange for goods that said country produces and it does not have.
This type of international trade has the advantage of not altering the trade balance of nations, which remains neutral given that both countries deliver goods valued equally. Thus, fair and equitable trade is reached, although not always possible since the needs of one party do not always match those of the other.
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets $ 3,151 $ 3,367 Current liabilities $ 1,399 $ 2,078 Net fixed assets 14,060 14,511 Long-term debt 7,377 8,419 CABO WABO, INC. 2019 Income Statement Sales $ 45,000 Costs 22,522 Depreciation 3,885 Interest paid 995 a. What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
a. What is owners’ equity for 2018 and 2019?
owners' equity 2018 = $8,435
owners' equity 2019 = $7,381
b. What is the change in net working capital for 2019?
-$463
c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell?
net capital spending = $14,511 - $14,060 + $3,885 = $4,336
net capital spending = fixed assets purchased - sold
$4,336 = $8,038 - fixed assets sold
fixed assets sold = $3,702
c-2. What is the cash flow from assets for the year?
operating cash flow = EBIT + depreciation - taxes = $18,593 + $3,885 - $4,276 = $18,202
cash flow from assets = operating cash flow - change in net working capital - net capital spending = $18,202 - (-$463) - $4,336 = $14,329
d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors?
new long term debts = $8,419 (2019) - $7,377 (2018) = $1,042
cash flow form creditors = new long term debts - interests = $1,042 - $995 = $47
d-2. How much long-term debt must the company have paid off during the year?
new long term debts = new debt - retired debt
$1,042 = $2,479 - retired debt
retired debt = $2,479 - $1,042 = $1,437
a)The owners' equity for 2018 and 2019 is $8,435 and $7,381. b) The change in net working capital for 2019 is $463. c-1) The fix assets sell are $3,702, c2-The cash flow from assets for the year is $14,329. d-1)The cash flow to creditors is $47 and d-2)The long-term debt that the company must have paid off during the year is $1,437.
a)owners' equity 2018 = $8,435 owners' equity 2019 = $7,381
b. The change in net working capital for 2019 is $463
c-1. The company purchased $8,038 in new fixed assets. The tax rate Is 23 percent. The fixed assets sold are:
net capital spending $14,511 $14,060+ $3,885-$4,336
net capital spending = fixed assets purchased-sold
$4,336 $8,038-fixed assets sold
fixed assets sold = $3,702
c-2. The cash flow from assets for the year is:
operating cash flow - EBIT + depreciation-taxes = $18,593 +$3,885- $4,276 $18,202
cash flow from assets = operating cash flow-change in net working capital- net capital spending $18,202 (-$463)-$4,336 $14,329
d-1. During 2019, the company raised $2,479 in new long-term debt. The cash flow to creditors is:
new long term debts = $8,419 (2019) - $7,377 (2018) = $1,042 cash flow form creditors = new long term debts interests $1,042 - $995 = $47
d-2. The long-term debt that the company must have paid off during the year is:
new long term debts = new debt-retired debt $1,042 $2,479 - retired debt
retired debt = $2,479 - $1,042 = $1,437
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Zapper has beginning equity of $279,000, net income of $62,000, dividends paid of $51,000 and stockholder investments of $17,000. Its ending equity is:
Answer:
$307,000
Explanation:
Equity is the remaining value of the owner;s interest in a company after all liabilities have been settled.
It can also be defined as the capital contributed by the owners and the attributable profit or losses after a trading period that is retained in the entity.
The net income and the stockholder investment , being an inflow ,will be added to the beginning equity while the dividends paid being an outflow is deducted.
Workings
Ending equity = Beginning equity + net income +Stockholder investment - Dividends paid
=279,000+62,000+17,000-51,000
307,000
Jack's adjusted basis in his passive activity is $30,000 at the beginning of the year. His losses from the activity is $8,000. What is Jack's deduction for the year
Answer:
No deduction
Explanation:
A passive activity is that event, in which the taxpayer did not participate significantly in the sector. In the other hand if the taxpayer is not having passive income though-out the the year, so a taxpayer will not get any deduction of passive losses which is available.
Therefore as per the above explanation, the passive loss is 8,000 and as per the situation, Jack is not eligible to get any deduction.
Match each word with the phrase: diversification- the period of time after people end their working careers, guaranteed- to promise and deliver
Answer:
*Diversification => The practice of putting money into more than one kind of investment
*Guarantee => To promise and deliver a future result
*Return => The money earned on an investment in a certain period of time
*Liquidity => The ability to quickly convert something into cash
*Retirement => The period of time after people end their working careers
Explanation:
1. Diversification is the act of investing resources into different areas or sectors of an economy. For example, a company that produces mainly clothing and textile materials can decide to diversify by investing in other areas like agriculture or food processing.
2. Guarantee is usually the ability of a company to promise, for example, certain qualities of a product to the consumers, and also matching the promise with the actual fulfillment of what was promised to the consumers.
3. Return: for example, if I invest $5000 on a restaurant business, and after like 12 months, the money generated on the money invested is my returns.
4. Liquidity: for example, if I have harvested cash crops, and I need money immediately, I can easily generate cash by selling them. The ease at which an asset can be converted to cash is what is termed liquidity.
5. Retirement: virtually all careers have a set time when their employees are due for retirment. The period when one leaves a career officially, after spending a certain period of years in service, is what is termed retirement.
Answer:
couldn't fit the whole thing in
Xie Company identified the following activities, costs, and activity drivers for 2017 The company manufactures two types of go-karts Deluxe and Basic.
Activity Expected Costs Expected Activity
handling materials $ 625,000 100,000 parts
Inspecting product 900,800 1,500 batches
Processing purchase orders 105,000 700 orders
Paying suppliers 175,000 500 invoices
Ensuring the factory 300,000 40,000 square feet
Designing packaging 75,000 2 models
Required:
1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours
2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer:
Instructions are below.
Explanation:
Giving the following information:
handling materials $625,000
Inspecting product $900,800
Processing purchase orders $105,000
Paying suppliers $175,000
Ensuring the factory $300,000
Designing packaging $75,000
Total overhead= $2,180,800
First, we need to calculate the plantwide predetermined overhead rate:
Estimated direct-labor hours= 125,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,180,800/125,000
Predetermined manufacturing overhead rate= $17.45 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe= 2,500*17.45= $43,625
Basic= 6,000*17.45= $104,700
The shipping problem in LP is also called the:__________.
a) production mix problem.
b) freight train problem.
c) transportation problem.
d) land and sea problem.
e) none of the above.
Answer:
c) transportation problem
Explanation:
The SHIPPING PROBLEM in LP which is also known as the TRANSPORTATION PROBLEM in LP can be defined as a unique type of linear programming problem in which the aim and purpose is to help to minimise the overall cost of a product which occured when distributing the product from a number of sources to another number of destinations.
Therefore because of its unique structure the method which is the usual simplex method is not suitable to been used in solving the transportation problems.
To be useful, the information outputs of a system should be:______
a. relevant, reliable, timely, and accurate.
b. reliable, flexible, understandable and timeless.
c. such that one report meets all different users needs.
d. distributed only to management personnel.
Answer:
a.relevant,reliable,timely and accurate
Pharoah Company sublet a portion of its warehouse for five years at an annual rental of $71700, beginning on May 1, 2017. The tenant, Sheri Charter, paid one year's rent in advance, which Pharoah recorded as a credit to Unearned Rent Revenue. Pharoah reports on a calendar-year basis. The adjustment on December 31, 2017 for Pharoah should be
Answer:
Adjusting entries
Dr Unearned rent revenue $47,800
Cr Rent revenue $47,800 to record accrued rent revenue.
Explanation:
Contract value for one year $71,700
One month of rent $71,700/12 = $5,975
We will need to get how many month that has passed from May to December i.e 8 months
Value of 8 month of rent = 8 × $5,975
= $47,800 i.e earned portion of the contract.
Balance unearned rent revenue at year end= $71,700 - $47,800
= $23,900
" Fiona wants to sell a local advertising calendar. She knows there are 1000 households in her community, and estimates 30 percent will buy the calendar. The printing company will charge a $100 set up fee and calendars will cost $1 each to print. What price will she need to charge to cover all costs and make a $500 profit. Group of answer choices"
Answer:
The answer is $3
Explanation:
Pr = Q(P-VC) - FC
Where Pr is the profit made
Q is the quantity of calendar to be sold
P is the price to be charged
VC is the variable cost
FC is the fixed cost
Quantity of calendar to be produced is
30 percent of 1000
0.3 x 1000 units
= 300 units
500 = 300(x-1) - 100.
500 = 300x - 300 - 100
300x = 500 + 300 + 100
300x = 900
x = 900/300
x = 3
The price to be charged to cover all costs and make a $500 profit is therefore $3
Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: Utilities for the store $ 9 comma 600 Sales commissions 10 comma 100 Sales revenue 164 comma 800 Purchases of merchandise 89 comma 900 January 1 inventory 27 comma 000 Rent for store 13 comma 800 December 31 inventory 23 comma 500 What is operating income?
Answer:
$41,400
Explanation:
Calculation for Paper Clip Company Operating income
OPERATING NET INCOME for Paper Clip Company
Sales revenue 164,800
Less: Purchases of merchandise (89,900)
Utilities for the store (9,600)
Sales commission (10,100)
Rent for store (13,800)
Operating net income $41,400
Therefore the Operating net income will be $41,400
Use the following to prepare the cash budget. What is the ending cash balance? Beginning cash balance $3,000; Cash receipts $50,000; Cash payments $40,000.
Answer:
Ending cash balance = $13,000
Explanation:
A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.
With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position
Ending cash balance = Beginning cash balance + cash receipts - cash payment
= 3,000 + 50,000 - 40,000
Ending cash balance = $13,000
If a player chooses a mixed strategy in a Nash equilibrium, this implies that the payoff from using that mixed strategy is the same as the payoff from using any of the pure strategies in it. If the statement is true try to reason why, if it is false find a counterexample.
Answer:
False.
Explanation:
The concept of "Nash equilibrium" is been by economist and also by "gamers" in game theory. Nash equilibrium is so good for making decisions and the determination of strategies.
In playing this game, the players or participants can use the pure strategy or the mixed strategy. The mixed strategy is the use of different strategies randomly.
"If a player chooses a mixed strategy in a Nash equilibrium, this implies that the payoff from using that mixed strategy is the same as the payoff from using any of the pure strategies in it".
The statement given above is FALSE because the PAYOFF WILL INCREASE IF WE ARE TO PLAY A MIXED STRATEGY.
For instance if we have a head of 1 and -1, and a tail of -1 and 1, the payoff for pure strategy is likely one or minus one but for a mixed strategy it could be zero.
Amanda Winter worked as a public engagement coordinator at Safe Food Alliance until three months ago when her manager, Laura Morris, promoted her to the position of a sustainable food campaigner. However, soon after this, Laura noticed that Amanda was facing major difficulties in achieving campaign milestones and the project was falling behind schedule due to her lack of performance. Which of the following, if true, would most strengthen the argument that Laura was influenced by the halo effect in her decision to promote Amanda? A) Laura is known to micromanage most of her projects. B) Laura uses cultural stereotyping in order to speed up the process of decision making. C) Laura has made good hiring decisions in the past and is known to be an unbiased judge of character. D) Laura sat in on only one of Amanda's presentations prior to giving her the promotion. E) Laura worked closely with Amanda over a period of eight months.
Answer:
Option D is the correct answer to this question.
Explanation:
Laura sat in on only one of Amanda's presentations before giving her the promotion.
They were made by hand before slides were mounted on computers. Designing a PowerPoint presentation took several hours and though it was costly. Presentations were illustrated back then people with devices such as journal flip charts and computer monitors, but these have been used in schools and conference rooms worldwide.
Other options are incorrect because they are not related to the given scenario.
If $ 9 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 2 comma 700 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year? A. $ 1 comma 036 B. $ 1 comma 243 C. $ 1 comma 658 D. $ 518
Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
1. The Troller Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?
Answer:
Cost of equity capital is 0.12125 or 12.125%
Explanation:
The cost of equity capital or the required rate of return is the minimum rate of return expected by the investors to invest in the stock of the company. The cost of equity capital can be calculated using the CAPM equation. The formula for CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
r is the cost of equity capital or required rate of returnrRF is the risk free raterM is the return on Marketr = 0.035 + 1.15 * (0.11 - 0.035)
r = 0.12125 or 12.125%
Which of the following industries is most likely to exhibit the characteristic of free entry? a. nuclear power b. municipal water and sewer c. dairy farming d. airport security
Answer:
c. dairy farming
Explanation:
Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.
This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.
Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.
A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.
In 2016, Joshua gave $12,500 worth of XYZ stock to his son. In 2017, the XYZ shares are worth $25,000. What is the total amount removed from Joshua’s estate in 2017?
Answer:
$12,500
Explanation:
Calculation for the total amount removed from Joshua’s estate in 2017
Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).
A share is a fraction of a company's or financial asset's ownership. Shareholders are dwellers who own shares in a company.
Answer is $12,500
Calculation for the total amount removed from Joshua’s estate in 2017
Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).
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Setrakian Industries needs to raise $96.2 million to fund a new project. The company will sell bonds that have a coupon rate of 6.04 percent paid semiannually and that mature in 30 years. The bonds will be sold at an initial YTM of 6.85 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds
Answer:
53,597 Bonds
Explanation:
The first is to determine how much each bond of $2,000 face value is sold using the excel pv function below:
=-pv(rate,nper,pmt,fv)
rate is the yield to maturity which is 6.85% divided by 2
nper is the number of semiannual coupons the bond would pay i.e 30*2
pmt is the amount of semiannual coupon i.e $2,000*6.04%*6/12=60.4
fv is the face value of $2,000 per bond
=-pv(6.85%/2,60,60.40,2000)= 1,794.86
a bond is $ 1,794.86
number of bonds=$96,200,000/$1,794.86= 53,597
GDP per capita in the countries of Neverland and Everland are 2,000 and 500, respectively. This suggests that, other things being equal, the returns from capital investment would be:
Answer:
The answer is 'greater in everland'
Explanation:
GDP per Capita measures the average level of national per person. It's a measure of economic activity. The formula is simple - the country's gross domestic product divided by its total population.
GDP per capital tells us how much economic production value can be apportioned to every citizen. The higher the GDP per capital, the higher or greater the returns from capital investment.
2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales revenues Variable cost of sales Fixed costs: Common Traceable Total Company $200,000 $ 60,000 $100,000 $ 50,000 Western Division $ 80,000 30,000 25,000 20,000 Eastern Division $120,000 30,000 75,000 30,000 Based on this information, prepare a segmented income statement for the quarter and comment on the results.
Answer:
Lereve Company
Segmented Income Statement for the fourth quarter:
Total Company Western Division Eastern Division
Sales revenues $200,000 $80,000 $120,000
Variable cost of sales 60,000 30,000 30,000
Contribution $140,000 $50,000 $90,000
Fixed costs:
Common $100,000 $25,000 $75,000
Traceable 50,000 20,000 30,000
Net Income (Loss) ($10,000) $5,000 ($15,000)
The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000. This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.
Explanation:
When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer. Management is enabled to focus on the segments or the factors that are generating the loss to the company. Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions. It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.
"Reginald greets and chats with his regular customers every morning when they come in for coffee. He offers them tastes of anything special he is cooking that day, and has a database with their birthdays, offering regulars a free meal on their birthday. Reginald knows his regular customers create repeat business and: "
Answer:
spread positive word of mouth
Explanation:
Reginald knows his regular customers create repeat business and spread positive word of mouth. This means that the repeat customers leave happy and tell their friends about the great experience they had at Reginald's restaurant. This creates enthusiasm in the repeat customers' friends which in term causes them to go to Reginald's business and try the food. This creates more repeat customers and increased profitability for Reginald's business.
Challenge Tennis & Recreation's operating activities for the year are listed below. Purchases $174 comma 800 Operating expenses 62 comma 600 Beginning inventory 27 comma 600 Ending inventory 37 comma 800 Sales revenue 334 comma 000 What is the gross profit for the year?
Answer:
The answer is $169,400
Explanation:
Gross profit is a line item under income statement and it is the difference between net sales(revenue) and cost of sales. It is a measure of profitability ( net sales - cost of sales?
Cost of sales = beginning Inventory + purchases - ending Inventory
$27,600 + $174,800 - $37,800
$164,600.
Now, cost of sales is: ( net sales - cost of sales)
$334,000 - $163,800
=$169,400
A CEO who communicates about the opportunities and challenges facing the company to employees at all levels and in all departments is engaged in
Answer: Open communication
Explanation:
A CEO who communicates about the opportunities and challenges facing the company to employees at all levels and in all departments is engaged in an open communication.
An open communication gives room for engagement between the employees and also enables them to understand the things that are needed in order to that achieve organizational goals and objectives.
Answer:
open communication
Explanation:
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $111,000. Division sales for the year were $1,170,000 and its variable costs were $1,035,000. The fixed costs of the division were $245,000. If the windows division is dropped, 60% of the fixed costs allocated to it could be eliminated. The impact on Gion’s operating income from eliminating this business segment would be:
Answer:
$12,000 increase
Explanation:
The computation of the impact on operating income from eliminating this business segment is shown below:
= Lost revenue + Variable cost avoided + Eliminated Fixed cost
= -$1,170,000 + $1,035,000 + $245,000 × 0.60
= -$1,170,000 + $1,035,000 + $147,000
= $12,000
The $12,000 represent the increase in operating income
Define the role of the mathematical concepts of maximization and equilibrium in microeconomic theory.
Answer:
Functions and graphs are two mathematical concepts that are heavily used in microeconomics.
Explanation:
1. Functions
Economics is full of functions: manufacturing functions, distribution functions, parameter values, components for welfare programs, and so on. A function is indeed a connexion between several sets of data, such that the second set correlates exactly to one variable for each value in one collection.
2. Graphs
By visualising it in a graph we can enhance the innate knowledge of a practices and organisational performance. In a chart, independent variable effects are generally read off the horizontal axis, and the dependent variable effects are generally read off another vertical axis. And for variables, each position in the line matrix correlates to a set of variables
If a monopolist raises its price:________
a) the quantity demanded decreases.
b) it raises the barriers to entry.
c) the quantity demanded increases.
d) the quantity demanded remains the same.
Answer:
a) the quantity demanded decreases
Explanation:
As we know that'
A monopolist creates a monopoly in the market as the firm is a sole producer for the entire market due to which it charges high prices plus it is a price taker that means it offers cheap quality products at a lesser price
But if monopolist increased its price so the quantity demanded declines as the purchasing power reduced
Therefore option a is correct
Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should
Complete Question:
Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should;
A. Demand socially responsible behavior from his business partner.
B. Demand that his business partners adapt to U.S. culture and social behaviors.
C. Ignore the ethics of potential overseas business partners because the purpose of outsourcing is to make a profit.
D. Remind himself that his business responsibility is limited to his own actions.
Answer:
A. Demand socially responsible behavior from his business partner.
Explanation:
In this scenario, Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should demand socially responsible behavior from his business partner.
Its important to note that in order to grow your business successfully with a good reputation and customer satisfaction, you will have to bring in competent, credible, ethical and reliable professionals on board. Jorge should demand for socially responsible individuals from the outsourcing firm as this would go a long way to help his business achieve its aims, goals and by extension develop globally.
Hence, in order to build a wonderful and successful international brand, it's important that Jorge ask the recruiters (outsourcing firm) to go for individuals that are socially responsible. This simply entails, individuals who are ethical and do not have bad vices, criminal records or charges against them.
When comparing a letter of credit and a banker's acceptance for financing international business transactions, a letter of credit
a. pays a specified amount if certain conditions are met. Conversely, a banker's acceptance represents an unconditional promise to pay
b. provides financing directly between buyers and sellers in different countries. A banker's acceptance provides an arrangement in which a bank serves as a broker taking title to the goods.
c. provides payment anywhere in the world. A banker's acceptance pays in areas in which the bank has a branch.
d. requires both the buyer and seller to deal in the same currencies. A banker's acceptance provides for currency exchange.
Answer:
The answer is A.
Explanation:
A letter of credit is a promise given by an issuing bank at the request of its customer in which the bank promises to pay the beneficiary the states amount within a specified period of time. It has three elements – the beneficiary/seller, the buyer/applicant and the issuing bank.
While A banker's acceptance is a short term instrument given by a bank that obligates itself to make a payment at a later date. It is like a post-dated check.