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3 years ago

When ruko, a device used to stream movies at home, increases prices by 48% total revenue decreases by 61%?

Business

1 answer:

Free_Kalibri [48]3 years ago

3 0

Answer: Demand is elastic

Explanation:

Total revenue from the sale of a good is negatively related to the price when demand for the good is elastic and positively related to the price when demand for the good is inelastic.

So, as increase in price by 48% decreases total revenue by 61%, therefore the demand for Ruko, a device used to stream movies at home is elastic.

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Bourdon software has 10.6 percent coupon bonds on the market with 17 years to maturity. the bonds make semiannual payments and c

Nimfa-mama [501]

The Current yield on the bonds are calculated as :

Current yield = Annual coupon payments/ Current price

Here, we assume the face value of the bond to be $1000

Annual coupon payments are 10.6% of the face value or 0.106*1000 = 106

Current price = 108.1% of the face value = 1.081* 1000 = 1081

Current Yield = 106/1081

Current Yield = 0.098057 = 9.8057%

Current Yield = 9.81% (Rounded to two decimals)

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3 years ago

West Corp. issued 20-year bonds two years ago at a coupon rate of 8.3 percent. The bonds make semiannual payments. If these bond

lora16 [44]

Answer:

Yield to Maturity (YTM) is 7.94 %.

Explanation:

Yield to Maturity (YTM) refers to internal rate of return that bond holder will earn if he purchased the bond today at the current market price and held it till maturity of the bond.

Yield to Maturity of the the bond = [Coupon payment+ (Future value of bond - Present value of bond / no. of Periods)] / [(Future value of bond + Present value of bond)/2] ---- (a)

Bond maturity period = 20 years

Coupon rate = 8.3 %

Par Value = 1000

No. of periods = 2 x 20 = 40 (semi- annual)

Coupon payment = 8.3 % x 1000 = 83 = 83/2 = 41.5 (Semi-annual)

Present value of bond = 104 percent of Par value = 104

Future value of bond = 1000

YTM = ?

Putting the values in equation (a),

Semi annual YTM = [41.5 + (1000-1040 / 40)] / [(1000 + 1040)/2]

Semi annual YTM = [41.5 + (-40/40) ] / [(1040)/2]

Semi annual YTM= [41.5 - 1] / 1020

Semi annualv YTM = 40.5 / 1020 = 0.0397

Hence, Annual yield to maturity = 0.0397 x 2 = 0.0794 or 7.94 %.

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3 years ago

A machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. The amount that should be r

Lunna [17]

Answer:

c. $59,000

Explanation:

The cash flow statements shows the effect of the company's activities on cash. These activities are classed into operating, investing and financing activities.

When an asset is sold, the amount received from the sale is an inflow of cash to the company. This inflow is recognized in the investing segment of the cas flow statement.

Hence, the amount that should be reported as a source of cash under cash flows from investing activities is $59,000.

4 0

2 years ago

The results for conventional and activity-based costing (ABC) computations will be the same as long as: a.the levels of activity

aniked [119]

Answer:

d.the levels of activity for non-unit based cost drivers remain the same.

Explanation:

In the case of conventional and activity based costing calculations, the output should be similar to the activity levels that belong to the non-unit in which the cost driver should remain the same

Thus as per the given scenario, the option d is correct

And, the rest of the options seems incorrect

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3 years ago

When it comes to project prioritization, senior management is responsible for?

uranmaximum [27]

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3 years ago