Answer:
A. It is the point where the demand and supply curves Intersect.
Explanation:
Demand and supply curves determine the price of that particular product. The demand and supply curves are drawn from quantity in the horizontal axis and price in the vertical axis.
The demand can be described as the amount of goods or services that consumers buy at a given time at a particular price. The price usually dictates the quantity of goods that a consumer will be willing to buy depending on whether it is a want or need. Needs are goods or services that a consumer cannot do without, there demand are usually stable while a want is not priority that a consumer can do without. An increase in the price of a good or service for a want will definitely cause a reduction in the demand for the particular good or service since the consumers feel that they are paying too much for the service or good.
The supply can be described as the quantity of goods or services that the supplier or producer is willing to provide at a particular price. Most of the time, an increase in the price of a good or service encourages the suppliers to supply more of the goods or services to maximize on the profits.
The point at which the demand and supply curve intersect is referred to as equilibrium. At this point, the quantity demanded and the quantity supplied is equal. On the same note, the price the consumers are willing to pay, and the price the suppliers are willing to receive for that particular good or service is equal.
Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
Answer:
D.
Explanation:
<em>Let's analize what is FDI. And why D is the correct answer.</em>
Foreign direct investment (FDI) is is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. So it involves ownership of foreign assets.
Now why A B and C are false.
C. Greenfield venture is a form of FDI.
B. No, it can be done by private companies. Is the most common actually.
A. The risk depends on the market, and other factors, but it can be generalized as less risky.
Answer:
Overhead Cost - S1 = $30201
Explanation:
To assign Overhead costs to S1, we first need to calculate the Overhead Absorption rate for Machining and Order filling.
The Overhead Absorption rate for Machining is calculated by dividing the Machining Overheads by the number of Machine hours to calculate $ Overhead per Machine Hour.
- Total Machining Hours = 11500 + 3600 = 15100
- Machining = $11325 / 15100 Hours = $0.75 / Machine Hour
Now we do the same calculation for Order Filling Overheads and divide them by Number of Orders.
- Total Number of Orders = 270 + 1240 = 1510
- Order Filling = 26274 / 1510 = $17.4 per order
Now we allocate the Overheads to S1 on the basis of Machine Hours and Number of orders relating to S1.
- S1 Overheads = 0.75 × 11500 + 17.4 × 1240 = $30201
