Answer:
Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.
Explanation:
Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.
Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.
Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.
And we solve for "A" like this
Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.
Best of luck.
Answer:
B. Both I and II are true.
Explanation:
<em> The average total cost of a given level of output is the slope of the line from the origin to the total cost curve at that level of output</em>
The average total cost is defined as the sum of all total costs divided by the quantity produced. In other words, the cost of one unit of production. The average cost curve as shown in the diagram is U-shaped, where it falls with economies of scale and later rises as diseconomies of scale sets in.
<em />
<em>The marginal cost of a given level of output is the slope of the line that is tangent to the total cost curve at that level of output</em>
Marginal cost is the change that occurs in the total cost when quantity produced increases by one unit. In other words, it is the cost of producing an additional unit of a good. As per the diagram, the slope of the line tangent to the TC (TC = AC x Q1) curve at Q1 is the firm's marginal cost at this output level.
Answer: 40 pounds
Explanation:
Given the following :
Ordering cost = $10 / order
Carrying cost = 4 cents per pound per day
Cost of pepperoni = $3 per pound
Daily demand = 20 pounds
Order quantity = 80 pounds
Average inventory level at the time in which 80 pounds of pepperoni was ordered is given as
Average inventory level is given as :
Order quantity / 2
80 pounds / 2 = 40 pounds
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
Answer:
b. decrease no effect
Explanation:
When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.
Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.
Total paid in capital will decrease
Retained earnings will have no effect
Hope that helps.
