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3 years ago

What most likely will happen if the pie maker bakes a seventh pie?

Business

2 answers:

Korvikt [17]3 years ago

4 0

Answer:

The marginal cost will most likely increase to $2.00

earnstyle [38]3 years ago

4 0

Answer:

The marginal cost will most likely increase to $2.00

Explanation:

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Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, wh

Mariana [72]

Answer: The value of the bond will decrease

Explanation:

The Interest rate has a negative inverse relationship with the value of a bond . When the interest rate increases the value of a bond decreases and when interest rate decreases the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.

Bonds with long time frame (long term bonds), they also tend to be are more sensitive to changes in the interest rate this is known has the maturity effect. Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.

The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15% will cause a huge decrease in the value of the bond

5 0

3 years ago

Wholesome Cuisine, a frozen foods company, decides to create a new mail order meal division, focused on offering delicious food

emmasim [6.3K]

Answer:

Idea development

Explanation:

At the idea development stage, the company just decides to appraise and investigate whether the innovative idea is feasible and that will it generate value for the company in the long term. Furthermore, the idea is just a theoretical information that just sounds good for the business future and there is further investigation pending to appraise it.

3 0

3 years ago

Evaluate the following investment options by comparing their risk and liquidity: buying a franchise real estate (buying property

Gala2k [10]

Answer:

Buying a franchise: For me, this is the riskiest investment, because the success of the business depends on the product or service it sells. If there is no demand for the product or service, the business will go under. This investment is also highly illiquid—in addition, finding someone willing to buy a business is difficult.

Mutual fund: This is the least risky of the three investment options. It is highly liquid compared to buying a franchise or real estate. Mutual fund investors can easily cash in their investments by selling the units they hold in a fund at the current market price.

Real estate: Real estate is a risky investment. First, property prices can fall in a depressed housing market. Second, real estate properties are illiquid. They can’t be sold quickly for a good price, especially in times of recession in the housing market or in the overall economy.

A mutual fund is the best of the three investment options for me, for the following reasons:

I can invest small amounts of money regularly and get higher returns on the investment than I would from a savings account. Also, this is a highly liquid investment. In case of a financial emergency, I can quickly sell my mutual fund units at their current market price.

Real estate is currently both a risky and illiquid investment, because of poor market conditions.

Buying a franchise is not a good option for me, because I don’t plan to go into business. In any case, I don’t have the money to make this investment.

Explanation: PLATO

8 0

3 years ago

Which of the following relationships between book value and cash received at sale results in a loss on the sale of a long-term d

creativ13 [48]

Answer:

a. Book value is greater than cash received.

Explanation:

Book value of an asset is the cost of an asset less accumulated depreciation

Cash received is the price the asset is sold for.

If the asset is sold for less than its book value, it is sold at a loss

If an asset is sold for more than its book value, it is sold at a gain

8 0

3 years ago

firm purchased copper pipes a few years ago at $10 per pipe and stored them, using them only as the need arises. The firm coul

Lostsunrise [7]

Answer:

The opportunity cost of each pipe and what is the sunk cost is $77 and $67 per pipe respectively.

Explanation:

Opportunity cost: The opportunity cost is that cost which is incurred to choose the best options with the available options.

Sunk cost: The sunk cost is that cost which is not recovered in the future. Its other name is the past cost. It does not help to make future decisions as if it is incurred then it cannot be recovered again

So, the opportunity would be the current price i.e $77

And, the sunk cost is $67 per pipe ($77 - $10)

7 0

3 years ago