Answer:
$273
Explanation:
the futures price = current stock price x (1 + T-bill rate)ⁿ
- current stock price = $260
- T-bill rate = 5%
- n = is not given, but since the T-bill rate is for one year, I will suppose the futures contract is also for one year
the futures price = $260 x (1 + 5%)¹ = $260 x 1.05 = $273
A futures contract is a contract by which a buyer or seller is obligated to either purchase or sell (respectively) a stock or other security at a specific price in a specific date in the future.
Answer:
Letter b is correct.<u> Double but productivity will not change.</u>
Explanation:
Scale returns are characterized by an increase in production associated with an increase in production factors.
It is a concept that relates to the concept of economy of scale, but while in an economy of scale the effect of decreasing unit cost related to an increase in production levels, a return of scale corresponds to the effect of increase that occurs by the relation between the quantity of inputs and production.
Therefore, alternative b is correct, because at a constant return to scale, productivity increases at the same rate as inputs increase.
Answer:
d. $90,000, $60,000, $30,000 respectively.
Explanation:
The computation of price allocated is shown below:-
Ratio of values $90,000 : $60,000 : $30,000
= 3 : 2 : 1
Total cost = $180,000
Equipment = $180,000 × 3 ÷ 6
= $90,000
Installation= $180,000 × 2 ÷ 6
= $60,000
Training = $180,000 × 1 ÷ 6
= $30,000
Therefore the Equipment, Installation, Training is $90,000, $60,000, $30,000 respectively.
Answer: assessed as a percentage of the imported product's value levied on specific imported and exported products
Explanation: In simple words, tariffs which are ad valorem are valued on the basis of the transaction value of the goods and services that are to be imported or exported.
This strategy is implemented when the country wants to decrease its export deficit by placing high tariffs on imported goods which are of low value to the economy.
Answer:
Loss on sale of delivery equipment = $3,700
Explanation:
The following journal entry to record the exchange for Sheridan’s Delivery Company.
Delivery equipment debit (fair value) $2,800
Loss on sale of delivery equipment debit $37,00 (Note - 1)
Accumulated depreciation debit $15,000
Delivery equipment (original cost) credit $21,500
Note: Calculation: Loss on sale of delivery equipment = cost price of delivery equipment - accumulated depreciation - disposal of delivery equipment.
Loss on sale of delivery equipment = $21,500 - $15,000 - $2,800.
Loss on sale of delivery equipment = $21,500 - $17,800
Loss on sale of delivery equipment = $3,700