Answer:
961.88
Explanation:
First, examine whether the bond will be called if interest rate falls to 9%. The call price is
1,000 + 125 = 1,222. Bond price at 9% yield will be
$110/0.13 > call price of 846.15
Bond will be called. The price of the callable bond therefore is:
=+[.60(846.15)+.40(1125)]/1.11+110/1.11 =961.88
Answer:
a. $640 billion.
Explanation:
Net investment = $225
Gross investment = $865
Depreciation = Gross investment - Net investment = $865 - $225 = $640
Therefore, on the basis of Table, depreciation is a. $640 billion.
Answer:
The correct answer is A. A secondary effect of an increase on yacht tax rates would be the laying off of hundreds of poor and middle-class yacht makers as the wealthy spend their money elsewhere.
Explanation:
The tax increase of a certain product necessarily increases the final price of that product, that is, when the tax rate is raised, the amount of money necessary to buy said good rises.
In turn, according to the law of demand, the higher the price, the lower the quantity demanded of the product. In other words, this tax increase would produce a drop in the demand for yachts.
If demand falls, the income of producers and sellers of the product falls. This is where production is affected, since small and medium producers will have greater difficulties to cope with the drop in sales, often incurring losses that would lead to having to close the business.
Answer:
The balance of account receivable for year 2 is increase from the balance of year 1.
Explanation:
The balance of account receivable for year 2 is increase from the balance of year 1. This means the thee are more credit sales and less receipts from the customers in year 2 as compared to Year 1. Credit sales increases the account receivable balance but it should be settlement in the form of receipts from the customers.
<span>The graph above shows how the price of video games varies with the demand quantity. The equilibrium price is $50, and the equilibrium quantity is 200 video games.
Answer choice:
</span>A. price, quantity
Concept:
<span>Equilibrium is the point where supply and demand meet and the prices are set. Because the price is set as equilibrium.
</span>The quantity demanded is the amount of a product people are willing to buy at a certain<span> price.</span>
