The demand for a product is inelastic with respond to price if:<br> a.consumers are

Hugh has the choice between investing in a city of heflin bond at 6.60 percent investing in a surething bond at 10.00 percent. a

butalik [34]

Answer: Surething Inc, needs to issue bonds with 11% interest rate in order to make Hugh indifferent between investing in two bonds.

We arrive at the answer in the following manner:

The City of Helfin bonds are municipal bonds and hence they are tax free. This means that Hugh will get an after - tax return of 6.6%.

The bonds of Surething Inc offering a 10% interest, however are taxed at 40%. So, the current after-tax returns of the bond is:

$After - tax return= Pre- tax return * (1 -tax rate)$

$After-tax return= 0.1 * (1-0.4)$

Current after tax return = 0.06 or 6%

However Hugh will be indifferent to investing in these two bonds only if they offer the same after-tax return of 6.6%.

Given this, we can calculate the indifference rate as follows:

$After - tax return= Pre- tax return * (1 -tax rate)$

$0.066= Pre- tax return * (1 -0.4)$

$\frac{0.066}{0.6}= Pre-tax return$

Pre-tax return = 0.11 or 11%.

8 0

3 years ago

Arman sets the goal for his sales team to increase revenue by 40%. Which main function of a manager does this demonstrate?

Tcecarenko [31]

The main function that demonstrated by Arman is : Planning

In this step, Arman hasn't yet started how to achieve that goal. But he's already decided the benchmark for his team and started to formed various strategies that they can do

hope this helps

8 0

3 years ago

Federal Trade Commission regulations require that:

Stella [2.4K]

B is the answer to your question

5 0

3 years ago

Read 2 more answers

The mass culture theory results from viewing cinema as a(n)? economic institution. social institution. technological institution

Vadim26 [7]

The mass culture theory result from viewing cinema as a social institution.

Films that are widely disseminated and accessible can readily reach popular culture or mass culture.

Institutions in the theater or, more broadly, the arts have traditionally been on the front lines of managing societal crises or revolutions. Theatres serve as first responders, metaphorically, by providing locations and settings for enlarged depictions of the risks and challenges that society faces.

MASS CULTURE: Typically, the term "mass culture" refers to a culture that results from the centralized production methods used by the mass media.

The mass culture theory result from viewing cinema as a social institution.

To learn more about mass culture as a social institution, visit the following link:

brainly.com/question/16273365

#SPJ4

7 0

2 years ago

The management of Idaho Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of

rosijanka [135]

Answer:

d. positive $25,200

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 10%

Year = 0,1,2,3,4 and so on

Discount Factor:

Year 1 = 0.909

Year 2 = 0.826

Year 3 = 0.751

Year 4 = 0.683

Year 5 = 0.621

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4 + Year 5 cash inflow × Present Factor of Year 5

= $180,000 × 0.909 + $120,000 × 0.826 + $100,000 × 0.751 + $90,000 × 0.683 + $90,000 × 0.621

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the Net present value equals to

= $455,200 - $430,000

= $25,200

4 0

3 years ago

The demand for a product is inelastic with respond to price if: a.consumers are