When a consumer shifts purchases from product x to product y, the marginal utility of <u>X rises, and the </u><u>marginal utility</u><u> of Y falls.</u>
In economics, utility is the satisfaction or benefit obtained from consuming a product. The marginal utility of a good or service describes how much pleasure or satisfaction a consumer gains or loses by increasing or decreasing his consumption by one unit. There are three types of marginal utility. They are positive, negative, or zero marginal utilities.
Marginal utility is the pleasure obtained by the consumer for each additional unit he consumes. Calculate the utility over the first consumed product (threshold amount). For example, you can buy frozen donuts. In return, this will give you a certain level of benefit or satisfaction.
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Answer:<em>9.5354% or 9.6%</em>
Explanation:
<em>PMT = coupon (interest) payment = 12.2 % * $1,000 = $120</em>
<em>Let t = time left until bond is called = 10 years
</em>
<em>Let F be the face value = $ 1,100 ($ 1,000 + $ 100 (Call premium))</em>
<em>Let the Current bond price = 110 % x 1,000 = $1,100</em>
<em>Now,</em>
<em>The bond price is = PMT x 1-( 1 + r )⁻t / r + F/(1 + r )t</em>
<em>Therefore,</em>
<em>1100 = 100 x 1 - (1 + r)⁻¹⁰/r + 1100/(1 + r)¹⁰</em>
<em>Using the trial and error method,</em>
<em>r= 9.5354%</em>
<em>Then the yield to call (YTC) = 9.5354</em>
9.5354%
Answer:
a. Debit to Bad Debts Expense of $26,600
Explanation:
The computation of the bad debt expense is shown below:
= Allowance for uncollectible accounts - credit balance of allowance for uncollectible accounts
= $31,400 - $4,800
= $26,600
Hence, the first option is correct
Answer:
$100
Explanation:
The inherent value of a share or option or any other asset which an investor expects to have. In options it refers to the difference between it's current and the strike price.
The intrinsic value of options is calculated using the following formula:
Intrinsic value of option = Number of share options × ( Market price of the stock on the date of the grant - exercise price of the share option )
Intrinsic value of option = 100 × ( $10 - $9 )
Intrinsic value of option = 100 × $1
Intrinsic value of option = $100
So, the intrinsic value of the call option at the time of the initial investment was $100.
Because you will follow the plan,and therefore you will reach your goal
