Answer:
Several factors are driving Kristina’s and Andrew’s business decisions. Here are a few:
tax rates
availability of labor
distance to a major airport
access to highways
transportation infrastructure
Explanation:
Answer:
$600
Explanation:
Under the cash basis, the cash surplus is reported as profit which is calculated as under:
Cash Surplus = Cash inflow - Cash outflow
Here cash inflow are the receipt of cash which includes $400 and $300. Furthermore, the cash outflow includes $100 only.
So by putting values, we have:
Cash Surplus = ($400 + $300) - $100 = $600
This cash surplus of $600 will be reported as net income for the year under the cash basis of accounting.
Answer:
Yield to maturity =9.9%
Explanation:
The yield to maturity is the return on debt expressed in percentage. It can be used to worked as follows using the formula below
YTM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 9%× 1000 =90 , P- 92×1000= 920, F- 1000
AYM = 90 + (1000-920)/15 ÷ 1/2× (1000+920)
= 95.33
÷ 960
Yield to maturity =9.9%
Answer:
The rate of return must be 12.25% per year
Explanation:
Find the calculation attached. The aim is to increase the initial capital taking into acount that for each year the capital will be increased by the interest paid . Therefore the capital + interest paid will be the new balance from which the 12,25% will be applied again for the next 6 years.
Answer:
Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.
Explanation:
Circular flow model is defined as an economics model that shows major exchanges in the form of flow of money, goods, and services between economic agents. In this scenario the economic agents are households and firms.
Such flows are usually opposite in direction, correspond in value, and are in a closed circuit.
This relationship between households and firms is exemplified by households supplying their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.