Solution:
The calculation of interest rates using the financial calculator for these inputs;
PV = -$9,968,843;
PMT = $1,521,875;
N = 19;
FV = 0;
CPT I/Y = 13.9999% or approximately 14%
The discount rate used by the potential buyer is approximately 14%
Answer:
Option "D" is the correct answer to the following question.
Explanation:
Investment in any country reduces due to an increase in the price level, because of that decrease in investment, the gross domestic product of that country also decreases.
Due to less production, the country is unable to export the goods.
Increasing the level of price increases the value of consumption goods, which in turn reduces the demand for consumption in the country.
Answer and Explanation:
The classifications are as follows
1. Product cost and the manufacturing overhead
2. Period cost
3. Product cost and direct labor
4. Period cost
5. Product cost and the manufacturing overhead
6. Product cost and the manufacturing overhead
7. Product cost and direct material
8. Period cost
9. Product cost and direct material
10. Product cost and direct material
11. Period cost
12. Product cost and the manufacturing overhead
13. Product cost and the manufacturing overhead
14. Product cost and direct labor
Answer:
The correct answer is option a.
Explanation:
In a competitive market, there is no limitation on entry and exit, entry and exit are free. The firms in a perfectly competitive market are price takers. They have a horizontal line demand curve which also represents average revenue and marginal revenue.
The firms will enter the market in the long run if the price or marginal revenue is greater than average total cost. The firms will be maximizing their profits if the average total cost is equal to marginal revenue and price.
The firms will exit the industry if price and marginal revenue fall below the average total cost.
Answer:
Today's price = = $30
Explanation:
The question requires the most price one is willing to pay today for the following
a) a stock that will sell for $30 in 1 year
b) Payout a dividend of $3
3) with a return rate on equity of 10%
To calculate the price for today or the present value,
we add the dividend expected to the selling price as follows
$3 + $30 = $33
The rate = 10% and the period = 1 Year
Present value = Future Value / (1+r)∧n
= 33/ 1.1
= $30
