Answer:
The loanable funds supply curve (S1) will not shift.
Explanation:
When the interest rates change, it is similar to a change in the price of a good. In this case the good is money and the interest rate is its price. A change in the price of a good will result in a change of the quantity supplied along the supply curve, but it will not shift the entire curve, therefore the curve S1 remains the same.
Answer:
The answer is 5.47 percent
Explanation:
Firstly, we find coupon payment (PMT).
it can be gotten from the price (present value) of bond formula:
PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n
N = 10.5 years
1/Y = 6.2 percent
PV = $945
PMT = ?
FV = $1000
Using a Financial calculator to input all the variables above,
Annual PMT = $54.72
Semi annual will be $54.72/2= $27.36
Coupon rate is Annual PMT /par value
= $54.72/1000
0.0547 or 5.47 percent
Answer:
$40,000
Explanation:
The accounting procedure involved in the above is that one picks the lower between the actual interest incurred and the interest computed on the weighted average amount of accumulated expenditures for PPE.
The actual interest incurred on specific construction debt and other borrowings
= $50,000 + $20,000
= $70,000
Since the interest computed on the weighted average amount of accumulated expenditure for the building is $40,000 , the lower between the actual interest incurred and interest on weighted average amount of accumulated expenditure is $40,000, hence will be the capitalized amount.
Answer:
The correct answer is: Operating budget.
Explanation:
An operating budget is an estimate a business make of the expenses and revenue it plans to book in its ongoing operations. Operating budgets can also be used to forecast future operating corporate periods. This type of budget mainly includes the <em>number of sales expected in dollars</em>, <em>fixed and variable costs</em> as well as <em>operating expenses</em> such as loan payments or depreciation.
