"refer to your way, inc. what type of products is sold at your way?"

You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary

liubo4ka [24]

Answer:

A rational investor would be willing to pay more for DUE than for ORD, so their market prices should differ.

Explanation:

If both annuities pay the same amount ($5,000 per year), then the present value of the annuity due will always be higher than the present value of the ordinary annuity. Therefore, an investor will always be willing to pay more (at equal risk) for the annuity due than the ordinary annuity.

E.g. let say that both annuities carry a 10% interest rate.

The present value of the annuity due is:

PV = $5,000 + [$5,000 x 5.7590 (PV annuity factor, 10%, 9 periods)] = $33,795

The present value of the ordinary annuity is:

PV = $5,000 x 6.1446 (PV annuity factor, 10%, 10 periods) = $30,723

The logic behind this is that $1 today is worth more than $1 tomorrow, and the annuity due's first payment is today, while the ordinary annuity's first payment is in 1 year.

4 0

3 years ago

The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after

fredd [130]

Answer:

Option (C) is correct.

Explanation:

Given that,

Revenues = $55,632 million

Net operating profit after tax = $9,954 million

Net operating assets at fiscal year-end 2016 = $58,603 million

Net operating assets at fiscal year-end 2015 = $59,079 million

Net operating profit margin is determined by dividing the net operating profit after tax by the total amount of revenues during a fiscal year.

Net operating profit margin:

= (Net operating profit after tax ÷ Revenues) × 100

= ($9,954 ÷ $55,632) × 100

= 0.1789 × 100

= 17.89%

7 0

3 years ago

The resource-based view differs from the institution-based view in that the resource-based view focuses on a firm's _____.

Vladimir79 [104]

The resource-based view differs from the institution-based view in that the resource-based view focuses on a firm's internal strengths and weaknesses.

Resources are all materials available in our environment that are technically accessible, economically feasible, culturally sustainable, and that help meet our needs and desires. point.

Resources are physical materials that people need and value, such as land, air, and water. Resources are characterized as renewable or non-renewable. Renewable resources are automatically renewed as they are consumed, while non-renewable resources have limited availability.

1a: Source or Support: Available Resources - Usually used in the plural. b : natural source of wealth or income - often used in the plural. c : Natural features or phenomena that improve the quality of human life. d : computable wealth - usually used in the plural.

Learn more about resource here:brainly.com/question/24514288
#SPJ4

7 0

2 years ago

3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the

melisa1 [442]

Answer:

The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.

Explanation:

The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.

In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.

8 0

3 years ago

IE 9-3 ... AS/AD Model – Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the

11111nata11111 [884]

Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the RIGHT shifting AD caused by increased "G" spending . If the Price Level increases to $2.34, then Real Production GDP will have increased to $5200 b and 2 million people will have gained jobs. In the Business Cycle the economy will have moved from Point "x" toward Point y.

Explanation:

The AD-AS model (Aggregate production aggregate) demonstrates national income calculation and price level adjustments.

This shows how various events will change in two of our major macroeconomic indicators: Actual GDP and inflation.

Label all equilibrium in the axis, the interior
The positioning of LRAS provides important economic information, for example, if the efficiency of balance is on the left side of the LRAS, the economy is in recession.

4 0

3 years ago