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2 years ago

Supply of a product will tend to be more inelastic when

1 answer:

3 0

The supply of the product tend to be more inelastic when the prices of the goods are high. Supply inelasticity is caused by the sudden change of the price of goods needed to release the supply and more often than not, that change of price is a price hike; meaning, the increase of price reasonable or not.

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The following information is available on a depreciable asset owned by Mutual Savings Bank:

BARSIC [14]

Answer:

$4366.67

Explanation:

Given: Asset book value on july 1, year 3= $57800

Salvage value= $5400

Useful life left= 6 years.

Now, computing the depreciation expense under straight line method.

Formula; Depreciation= $\frac{Asset\ book\ value - salvage\ value}{useful\ life}$

Useful life in months= $6\times 12= 72\ months$

Next, Depreciation expense= $\frac{57800-5400}{72} = \$ 727.77$

∴ Monthly depreciation expense= $ 727.77

Depreciation expense for last six months of year 3= $727.77 \times 6= \$ 4366.67$

∴ Depreciation expense for last six month of year 3 is $4366.67.

3 0

3 years ago

Variables such as location, the North American Industry Classification System (NAICS) code, and type of buy are all examples of

victus00 [196]

The correct answer is this one: "segment an organizational market." Variables such as location, the North American Industry Classification System (NAICS) code, and type of buy are all examples of ways to: segment an organizational market.

8 0

2 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

Veseljchak [2.6K]

Answer:

Bond price=$888.35

Explanation:

The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate

Value of Bond = PV of interest + PV of RV

The value of bond for Local School District can be worked out as follows:

Step 1

PV of interest payments

PV = A × (1+r)^(-n)/r

A-annul interest payment:

= 7.5% × 1,000× = 75

r-Annual yield = 8.6%

n-Maturity period = 25

PV of interest payment:

=75× (1- (1+0.086)^(-25)/0.086)

= 761.22

Step 2

PV of Redemption Value

= 1000 × (1.017)^(-25)

= $127.131

Step 3

Price of bond

=761.222 + 127.13

=$888.35

6 0

3 years ago

Based on the weight of the consumer price index (CPI), the price of rental housing increases by 15% and that of owned housing by

Levart [38]

Answer:

D) all other factors being constant, it is likely the CPI would rise during the year in question.

Explanation:

The CPI measures the price of a basket of goods and that basket includes both housing expenses and gasoline, but housing expenses are "heavier" than gasoline (their relative weight on the CPI is much higher) because they represent a much larger portion of a household's income. It is common for a family to pay $1,000 (or much more) per month on rent or a mortgage, while how many people actually spend over $1,000 per month on gas?

4 0

2 years ago

______, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with h

Anika [276]

With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.

<h3>What is homemade leverage?</h3>

Generally, When an investment in a firm that does not use leverage is converted into the impact that leverage has on investment by using personal borrowing, this is an example of homemade leverage.

In conclusion, By utilizing borrowed money plus her own finances to acquire shares in a firm, an investor might "do her own leverage," or mimic the capital structure of a publicly traded company.