If the nominal, risk-free rate on T-bills recently is 1.23% and if the real rate of interest is 0.80%, than the exact and approximate expected level of inflation is 0.427%.
The nominal risk-free rate is often the present yield of the 3-month Treasury bill while not taking under consideration the impact of inflation. the important safe rate is that the yield of the 3-month Treasury bill minus the impact of inflation.
Rate of interest is quantity|the quantity|the number} charged over and higher than the principal amount by the investor from the recipient. In terms of the receiver, an individual UN agency deposits cash to any bank or financial organization additionally earns further financial gain considering the continuance of cash, termed as interest received by the investor.
The question is incomplete, find the complete question here
The nominal, risk-free rate on t-bills recently is 1.23%. if the real rate of interest is 0.80%, what is the exact and approximate expected level of inflation?
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how long will it take the investment to reach if the rate of return continues? round to the nearest tenth of a year. round values in intermediate steps to three decimal places. it will take the investment approximately yr to reach if the rate of return continues.
The length of time it will take for the investment to reach $23, 000, if the rate of return continues, is 41. 40 year.
How to find investment time required ?To find the length of time it will take for the investment account to reach $23, 000 from the current mount of $ 13, 000 invested into the bond fund, you will have to use natural logarithms in the form:
Amount to be reached = Amount invested x e ^ ( Rate of return x time )
23, 000 = 13, 000 e ⁰.⁰¹³⁷⁸ⁿ
n = 1 / 0. 01378 x ln ( 23, 000 / 13, 000)
n = 41. 40 years
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The full question is :
Suppose that $13,000 is invested in a bond fund and the account grows to S13,927.10 in 5 yr, at a rate of 1.378%.
How long will it take the investment to reach S23,000 if the rate of return continues? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places.
a nash equilibrium occurs when part 2 a. there is no dominant firm in a market. b. each firm is doing the best it can given its opponents' actions. c. a player can choose a strategy that is optimal regardless of its rivals' actions. d. each firm chooses the strategy that maximizes its minimum gain.
The correct response is b. each firm is doing the best it can given its opponentsʹ actions. A Nash equilibrium occurs when each firm is doing the best it can given its opponentsʹ actions.
The Nash equilibrium, which bears the name of the mathematician John Nash, is the most popular technique in game theory to describe the outcome of a non-cooperative game involving two or more participants. Each player in a Nash equilibrium is considered to be aware of the equilibrium strategies of the other players, and changing one's own strategy will not benefit anyone. Cournot first used the concept of Nash equilibrium in 1838 when he applied it to output selection by rival enterprises. The current set of strategy options represents a Nash equilibrium if each player has chosen a strategy and an action plan based on what has transpired so far in the game and no one can raise their personal expected return by changing their approach while the other players leave theirs unchanged. If two players, Alice and Bob, choose strategies A and B, then (A, B) is a Nash equilibrium if neither Alice nor Bob has access to a different strategy that maximizes their payoff in response to the other player choosing B, and neither Alice nor Bob has access to a different strategy that maximizes their payoff in response to the other player choosing A. (A, B, C, D) is a Nash equilibrium in a game where Carol and Dan are also participants if A is Alice's best response to (B, C, D), Bob's best response to (A, C, D), and so on.
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To maximize profits, a firm should hire additional resources as long as each additional resource unit adds more to costs than it does to revenue. O True O False
The statement about maximization of profit by a company is a False statement.
Whenever a Business firm is setup, the owner of the firm always tries to make profit from the business. His main aim is to earn profits and make his business reach to new heights of success. He aims that whatever cost he has to pay while laying the business should all be compensated from the revenue of the business and even extra money is earned through the business. So, in order for maximizing the profit it would not be correct to add additional resources in the business that are adding to the costs of the business rather than the revenue of the business. It would make the business in loss.
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a potential new project has an expected salvage value of $200,000 and an expected book value of zero at the end of its 5-year expected life. what taxes would the company own at the end of year 5 because of this project's expected salvage value of their tax rate is 25%.
As a result, the company would be responsible for $50,000 in taxes related to this project after five years.
What is salvage value?After all depreciation has been properly expensed, the salvage value of an asset is its book value. The salvage value of an asset is determined by what a corporation anticipates getting in exchange for selling or dividing the asset after the end of its useful life. The amount that the object can be sold for when its useful life is up is its salvage value. The estimated value of an asset that is fixed at the end of its useful life or lease term is its residual value, which is often referred to as salvage value. The residual value is one of the lessor's main ways for calculating the amount of the lessee's periodic lease payments in lease agreements.
Why is salvage value important?Determining the salvage value of an asset aids a company in planning its depreciation schedule. This schedule's identification is crucial for financial accounting departments' bookkeeping needs, including tax deductions and calculating how much an asset will increase or decrease cash flow.
Briefing:Salvage Value = $200,000
Excepted Book Value=0
Excepted Life= 5 Year
Tax Rate= 25%
Now,
Gain over the book value = Salvage value - Expected book value
= $200,000 - 0
= $200,000
Taxes owed = Gain over the book value × Tax rate
= $200,000 × 25%
= $50,000
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if a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then question 3 options: a) a one-unit increase in output will increase the firm's profit. b) a one-unit decrease in output will increase the firm's profit. c) total revenue exceeds total cost. d) total revenue exceeds total cost.
If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then one-unit increase in output will increase the firm's profit.
A perfectly competitive business must accept the equilibrium price at which it sells its products because it is a price taker. A completely competitive business will not be able to generate any sales if it seeks to charge even a small amount above the going rate.
There are numerous buyers and sellers in a market with perfect competition, and prices always reflect supply and demand. Companies only make as much money as is necessary to stay in operation. Other businesses would enter the market and reduce revenues if they were to make excessive profits.
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a firm has a pure discount loan with face value of $75,000 that is due in six months. the assets of the firm are currently worth $96,000. the stockholders in this firm basically own options on the assets of the firm with a strike price of .
As you owns stock in a firm that has a pure discount loan due in six months. The loan has a face value of $70,000. The assets of the firm are currently worth $96,000. The stockholders in this firm basically own a call option on the assets of the firm with a strike price of $70,000.
What Is a Call Option?Basically, a call options refers to a financial contracts that give the option buyer the right, but not an obligation to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.
What is a Strike price?On an options contract, a strike price refers to the the price at which the underlying security can be either bought or sold once exercised. It is also known as the exercise price and it is a key feature of an options contract.
In conclusion, as the firm has a pure discount loan with face value of $75,000 which is due in six months whereas its assets are worth $96,000, then, we will say the firm have a call option with a strike price of $96,000.
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a computer repair shop has decided to focus their outreach efforts and develop a desktop ad campaign. which ad placement option would they include in their campaign?
d in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.)
A.) Issue additional shares of stock and use the proceeds to pay down 5-year and 10-year loans
B.) Pay off any 1-year loans (and temporarily avoid the use of 1-year loans) because 1-year loans are considered a current liability and thus reduce the company's current ratio
C.) Temporarily reduce dividend payments to shareholders and use the cash saved from lower dividend payments to pay down 5-year and 10-year loans
D.) use a portion on the company's internal cash flows and new issues of common stock to pay higher dividends to shareholders.
E.) Place increased attention on improving operating profits and operating profit margins in all four geographic regions -- the resulting growth in operating profits companywide will increase the company's interest coverage ratio
The deposit rating technique is when a deposit ranking agency (preferably a third party) takes important points of a bond, stock, security, or organization and analyses them to price them so that every body else can use these scores to use them as investments.
Why credit rating is important?A accurate deposit ranking improves credibility and shows a excellent records of paying lower back loans on time in the past. It helps banks and buyers figure out about approving mortgage applications and the charge of hobby offered.
What elements have an effect on deposit rating?Payment history, debt-to-credit ratio, length of credit score history, new credit, and the quantity of credit score you have all play a role in your deposit file and credit score score.
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when will it make sense to borrow to finance education beyond high school? what are some of the factors that will make borrowing to finance higher education risky?
There are some reasons that will make borrowing to finance higher education risky:
1. You'll have to pay more than you originally borrowed, thanks to interest.
2. Falling behind on student loan repayment can lead to delinquency and default.
3. Student loans can hurt your debt-to-income ratio.
Student loan debt affects more than your financial independence and your standard of living. You may find yourself sacrificing a job that offers you more purpose and fulfillment for a career with a higher salary.
Sometimes it will not make sense to borrow to finance education beyond high school, is usually a mistake. If you borrow to finance an investment; sometimes equity is a better choice because to borrow for high school is to take a risk. Indebted students may not earn enough to repay their loans after they graduate, or the worse student may fail to graduate at all. For students who cannot pay for college without borrowing, this risk is both a disincentive and a penalty.
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a treasury bill purchased in december 2020 has 143 days until maturity and a bank discount yield of 2.18 percent. assume a $100 face value. a. what is the price of the bill as a percentage of face value?
The cost of the bill, expressed as a percentage of its face value, is $99.17.
being that:
face amount is $100.
discount yield: 2.18 percent, or 0.0218
equals 143 days
discount yield is equal to [(FV-P)/P] (360/d).
0.0218 = [( 100 - P )/P] × 360/143
0.0218P = (100 - P ) 2.517
0.0218 P + 2.517 P = 251.7
P = 251.7 /2.538
P = $99.17
The bond equivalent yield is now provided as follows:BEY is calculated as (face value - purchase price) / (purchase price 360) / day.
BEY = ( 100 - 99.17 ) / 99.17 × 36 / 143
BEY = 0.0083 × 2.517
BEY = 0.020
2% BEY to percent
The total of the bill is therefore $99.17. In it's final valuation.
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miami is realizing a boom in an area of low priced housing with beautiful palm trees. the location is reasonably close to public transportation and within a short ride of downtown office buildings . many buyers are buying up these old, low priced homes and bulldozing them down. they are then building new $500,000 homes on the sites. this is an indication of what principle of value?
Miami is realizing a boom in an area of low priced housing with beautiful palm trees. the location is reasonably close to public transportation and within a short ride of downtown office buildings . many buyers are buying up these old, low priced homes and bulldozing them down. they are then building new $500,000 homes on the sites. this is an indication of contribution principle of value.
What is meant by the principle of value?Values are characteristics or standards that direct a person's behavior, while principles are the precepts or convictions that direct our activities. Principles are founded on a person's values, which is the primary distinction between values and principles. As a result, values serve as the basis for principles.
Employees can discern between what is considered significant and how it should be pursued thanks to values and principles. They assist in defining corporate activities to make sure it adheres to its mission and social contract.
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exercise 12-9 (static) cash flows from investing activities lo p3 equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. paid $89,000 cash for a new truck. sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. stock investments were sold for $60,800 cash, yielding a gain of $4,150. use the above information to determine cash flows from investing activities. note: amounts to be deducted should be indicated with a minus sign.
The cash flows from investing activities, given the costs of equipment and other fixed assets, are $ 221, 100.
How to find the cash flow from investing activities?The cash flow from investing activities refers to those cash flows that are either made from the sale of fixed assets and capital assets, or lost to the purchase of these same things.
The cash flows from investing activities here is therefore:
= Gain from sale of equipment - purchase of new truck + sale of and + sale of long term investment
= ( 65, 300 - 14, 000 ) - 89, 000 + 198, 000 + 60, 800
= $ 221, 100
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What kind of claim is used for billing provider fee-for-service claims to commercial health insurance companies?.
CMS-1500 is the kind of claim is used for billing provider fee-for-service claims to commercial health insurance companies.
When you mention insurance, what do you mean?Explain insurance. A risk management tool is insurance. When you buy insurance, you get protection against unanticipated financial losses. If something unfavorable occurs, the insurance provider compensates you or a different person of your choosing.
What benefits does insurance provide?Insurance serves as a financial safety net to help you and your loved ones recover in the event of a tragedy, such as a fire, theft, legal action, or car accident. When you get insurance, you will receive an insurance policy, which is a contract that is legally enforceable between you and your insurance company.
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if japan does not have a comparative advantage in producing rice, what would be the consequence of adopting a japanese policy reducing or eliminating imports of rice into the country?
Answer:
The Real incomes of Japanese Rice Consumers would rise, but the real incomes of Japanese Rice Producers would fall.
Explanation:
stock price data show periods of relatively calm interrupted by periods of enhanced price volatility. this suggests stock price data are
Stock price data show periods of relatively calm interrupted by periods of enhanced price volatility. Stock price data are heteroscedastic.
What Causes Heteroscedastic ?
Heteroscedasticity is primarily due to the presence of outliers in the data. Heteroscedasticity outliers mean that there are observations in the sample that are either small or large relative to other observations. Heteroscedasticity can also occur by omitting variables from the model.
What is heteroscedasticity and why is it important?Heteroscedasticity refers to the situation where the variances of the residuals are not equal over the range of measurements. If unequal variances are present and the populations used in the regression contain unequal variances, the analysis results may be invalid.
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what type of money is a u.s. $100 bill? group of answer choices fiat money virtual money commodity money polymer money
Fiat money is the type of money is a u.s. $100 bill.
Fiat cash is a sort of forex that isn't always sponsored with the aid of any commodity inclusive of gold or silver. it is commonly specified by way of the issuing government to be prison soft. throughout history, fiat cash changed into occasionally issued via neighborhood banks and other institutions.
A few human beings, however, use the time period fiat foreign money to explain any money issued through a central authority and used as criminal smooth. these days, the term fiat forex is commonly used as a way of distinguishing ordinary money from cryptocurrency.
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The balance sheet for Ronlad Corporation reported 180,000 shares outstanding, 271,000 shares authorized, and 24,000 shares in treasury stock. How many shares have been issued?
The number of shares that have been issued are 77,000.
What is a share?A share is a unit of equity ownership in the capital stock of a company in the financial markets, and it can also be used to refer to shares of the mutual funds, limited partnerships, and the real estate investment trusts. A share is an immovable unit of capital that symbolizes the ownership connection between the company and the shareholder. The denominated value of share is its face value, which could not be same as share's market value. The capital of firm consists of whole face value of its issued shares. A dividend is income received as compensation for holding shares. Equity, preference, deferred, redeemable, bonus, right, and shares from employee stock option programs are only a few of the several types of shares.
Here, total authorized shares are 330,000 and the outstanding shares are 230,000 and 23,000 shares in the treasury stock.
Total number of authorized shares= issued shares + shares yet to be issued
Number of new shares can be issue is= 330,000- (230,000+23,000)
= 77,000 shares
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suppose you purchase a treasury bond futures contract at a price of 92 percent of the face value, $100,000. a. what is your obligation when you purchase this futures contract? b. assume that the treasury bond futures price falls to 90.20 percent. what is your loss or gain? c. assume that the treasury bond futures price rises to 93.00. what is your loss or gain?
a. $92,000
b. Loss of $1,800
c. Gain $1,000
a. You are obligated to take delivery of a $100,000 face value 15-year Treasury bond at a price of $92,000 at contract maturity.
b. Your loss is $1,800 since you must pay $92,000 for bonds that have a market value of only $90,200.
c. In this case you gain $1,000 since you pay only $92,000 for bonds that have a market value of $93,000.
The face price is the nominal price of the stocks, that is, their authentic cost, as stated in the percentage certificate. it's far simply an accounting price that might both be ₹1, ₹2, ₹5, ₹10, or even ₹one hundred. The idea of face cost can be without difficulty understood with an instance of a preliminary public supply (IPO).
Face value is equal to the equity share capital divided by means of the number of great shares. four. the market fee is calculated by means of multiplying the present-day stock rate with the wide variety of superb shares. e-book fee: book cost is a similar inventory marketplace terminology this is carefully associated with Face value and marketplace value.
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he preferred stocks issued by aaa distributes $3 dividend per share. the required rate of return for similar corporations preferred stock is 14 percent. what is the value per share of these preferred stocks?
In a condition wherein AAA distributed $3 dividend per share, and the required rate of return for similar corporations preferred stock is 14 percent, then the value per share of these preferred stocks will be 21.43.
The required rate of return is the amount of returns expected by the investors over their monetary engagement. For the information provided above, the value of preferred stocks can be computed as below,
Value per Share = Dividend x 100 / Return
Value per Share = 3*100/14
Value per Share = 21.43
Therefore, the value per share will be 21.43.
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inventory is an additional amount of inventory that is kept over and above the average amount required to meet demand.
It is accurate to say this. Inventory is the extra volume of goods held in excess of what is typically needed to meet demand.
In a corporate context, what does inventory mean?
Products in various stages of preparation for sale are referred to as inventory in accounting terms, including: Finished products (that are available to be sold) Collaborate (meaning in the process of being made) (meaning in the process of being made) components, raw (to be used to produce more finished goods).
Which two inventory systems are there?
Permanent and periodic inventory are two different forms of inventory. Businesses measure the number of items they have available using both accounting techniques.
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unlikely candidates for divestiture in a corporate restructuring effort are multiple choice weak performers. businesses in unattractive industries. businesses compatible with the company's revised diversification strategy. businesses that are cash hogs or that lack other types of resource fit. business units that lack strategic fit with the businesses to be retained.
Unlikely candidates for divestiture in a corporate restructuring effort are weak performers.
A candidate or nominee is a person who may receive an award or honor or who is seeking or being considered for a position. for example: In this case, there will be a selection process for applicants in order to be elected to public office become a member of a group.
Nomination is part of the process of selecting a candidate for election by a political party or for the awarding of honors or honors. This person is called a "candidate," although "candidate" is often used interchangeably with "candidate." A presumptive nominee is an individual or organization that believes nomination is inevitable or likely to be nominated.
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according to the federal department of health and human services, the 2020 poverty index for a family of four was $26,500 in annual income, with nearly 14 percent of texans falling below the poverty line. use your understanding of the poverty rates in texas and the information in the map to determine which statement is the most accurate
Answer:
Texas families living below the poverty line in urban areas are likely to struggle to meet basic needs after paying for housing.
Explanation:
because of budget cuts, the company hasn’t been hiring new employees for open positions. each team member has to work one extra shift each week to account for the unstaffed positions. the heavier workload is stressful, but everyone on your team made the adjustment and pitched in to get the work done. which phase of the general adaptation syndrome is your team experiencing
Your team is going through phase 2 of the general adaption syndrome as a result of budget cuts.
How do adaptation syndromes work?The organism's normal physiological responses constitute the adaptation syndromes, which cause changes in the functional equilibrium but lead to a return to the previous state of function once the demand is no longer present. Both particular and broad adaptation exist, according to the notion of endobiogeny. The specific adaptation syndromes entail the synchronization of selected subsets of autonomic, endocrine, and organ function over a range of timescales. There must be a buffering capacity that enables the organism to instantly react to the aggressiveness, regardless of the sort of adaptation response.
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when the boy tells the merchant that he is going to be leaving to return to his country to buy sheep, he asks for the merchant's blessing. what does the merchant say about the boy's journey home?
The Alchemist scenario that best exemplifies this assertion is The crystal trader describes how things would change in Africa if they start selling tea at the store.
As the company expands thanks to the merchant's ideas, he explains to the shop's proprietor that everything can be used as a link to form a whole. For instance, selling tea connects the satisfaction that a potential customer will experience after arriving at the location exhausted and having the chance to relax; as a result, they will see everything with a brighter perspective, which will make the product more alluring to them.
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Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific ____________ of a company.
strategy
Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific strategy of a company.
An organization's long-term objectives and the plan it has to achieve them are referred to as its strategy. In other words, it demonstrates the strategy for achieving the stated goal. The specific steps taken to accomplish the objectives in accordance with the strategy are referred to as a tactic. A plan outlines the ways by which the outcomes (goals) will be accomplished (resources). Strategy can be predetermined or it can develop organically when an organization competes or changes its surroundings. It entails tasks like strategic planning and strategic thought. Business, operational, and transformational strategies are all types of strategy. The five Ps each stand for a different method of strategy. Plan, Ploy, Pattern, Position, and Perspective fall under this category. These five factors make it possible for a business to create a more effective plan.
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the nominal yield on 6-month t-bills is 7%, while default-free japanese bonds that mature in 6 months have a nominal rate of 5.5%. in the spot exchange market, 1 yen equals $0.009. if interest rate parity holds, what is the 6-month forward exchange rate?
The 6 - month forward exchange rate, given the nominal rate, and the spot exchange, will be 0.907 %
How to find the forward rate ?First, find the periodic nominal rate as the period is in months :
= Nominal rate / Number of periods per year
= 5 . 5 % / 2 periods per year
= 2 . 75%
The nominal yield on - Bills :
= 7 % / 2
= 3.5%
The forward exchange rate is:
= ( 1 + periodic nominal rate ) / ( 1 + nominal yield ) x Current spot exchange
= ( 1 + 0.035) / ( 1 + 0.0275) x 0.0009
= 0.00907
= 0.907 %
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if the economy is initially in equilibrium at e2 and the central bank sells treasury bills, shift to a(n) gap.
if the economy is initially in equilibrium at e2 and the central bank sells treasury bills, AD1 may shift to AD2 a closing gap.
An financial system is an area of the manufacturing, distribution and exchange, as well as consumption of products and services. In popular, it's miles defined as a social area that emphasize the practices, discourses, and fabric expressions associated with the manufacturing, use, and control of scarce assets'.[1] A given financial system is a hard and fast of procedures that entails its culture, values, training, technological evolution, records, social company, political structure, prison systems, and herbal sources as foremost factors.
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under activity-based costing, nonmanufacturing costs blank . multiple choice question. may be allocated to products based on cause are never assigned to products are always treated as period costs are always assigned to products, regardless of cause
Nonmanufacturing overhead costs are expenses that are unrelated to the manufacture of a good.
Due to the fact that these expenditures are unrelated to products, they are not included when determining the cost of terminating inventory or the cost of goods sold. Finance charges, selling, general, and administrative expenses are non-manufacturing overhead costs. Costs associated with non-manufacturing overhead should not be considered discretionary because they support crucial corporate operations like sales and marketing. Instead, product price points ought to be established so that a business turns a profit after covering all of these costs.
Paying for sales and marketing personnel, office space rent and utilities, interest on loans and credit lines, marketing costs, liability insurance.
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when a manufacturer gives customers a small allowance to cover any potentially damaged product, this:
It's known as a swell allowance or an adjustable rate program when a manufacturer offers customers a minor allowance to compensate any potentially damaged goods.
What does the term "adjustable-rate" mean?
A house loan with an interest rate that changes over time in accordance with the market is known as an adjustable-rate mortgage, or ARM. If you want to acquire the lowest mortgage rate available at first, an ARM is an excellent choice because it often has a lower initial interest rate than fixed-rate mortgages.
What benefit does an adjustable rate offer?Early in the loan period, payments are lower and rates are lower. People can purchase more costly homes than they otherwise might since lenders can take the reduced payment into account when determining the eligibility of borrowers. Borrowers can benefit from declining rates without refinancing thanks to it.
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suppose that a u.s.-based mnc is considering establishing a subsidiary in a foreign country. however, the mnc is concerned about the risk of the host government taking over the subsidiary true or false: all else equal, if the subsidiary hires mostly local labor it will make a host government takeover less likely. true false
The statement that US based MNC while establishing a subsidiary in foreign country maybe overtaken by host government is true in nature.
Multinational Corporations are the big firms that operate in several countries and have headquarters in some developed nation. Generally, these MNC setup their firms in the countries which offer them easy business policies, major concessions, safety requirements, environmental standards, and human rights wherever they operate. The tension that these MNCs have is that of shareholder power. Many governments agree to setup companies only when the company offer them power to decide on big questions/ queries of the company. Political risk factor, fund transfers are also affected due to this control.
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