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2 years ago

QUESTION THREE

Business

1 answer:

sveta [45]2 years ago

4 0

From the amount of capital that the graduates had, the firms economic depreciation would be $10000

<h3>How to solve for the economic depreciation of the firm</h3>

Original cost of the capital - market value of capital after a year

= $30000 - $20000

= $10000

<h3>How to solve for the partnership costs</h3>

This is the Cost of capital plus cost of office space and cost of interest = $44,520

<h3>How to solve for economic profit</h3>

Total revenue - partnership cost

100000 - 44520

= $55,480

Read more on economic depreciation here: brainly.com/question/14552090

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Read 2 more answers

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a) 7% as their market price will adjsut to give the same yield as the market

b) bond P = -10.17

bonds D = 10.07

Explanation:

we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)

Bond P

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 90.000

time 10

rate 0.07

$90 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\$

PV $632.1223

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 10.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{10} } = PV$

PV 508.35

PV c $632.1223

PV m $508.3493

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then, at time = 9

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 90.000

time 9

rate 0.07

$90 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\$

PV $586.3709

$\frac{Maturity}{(1 + rate)^{time} } = PV$

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time 9.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{9} } = PV$

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We repeat the process for bond D

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50.000

time 10

rate 0.07

$50 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\$

PV $351.1791

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 10.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{10} } = PV$

PV 508.35

PV c $351.1791

PV m $508.3493

Total $859.5284

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50.000

time 9

rate 0.07

$50 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\$

PV $325.7616

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 9.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{9} } = PV$

PV 543.93

PV c $325.7616

PV m $543.9337

Total $869.6954

Capital gain: 869.70 - 859.53 = 10.07

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