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3 years ago

How are wages and salaries different from interest and rent income

Business

1 answer:

Lynna [10]3 years ago

5 0

Answer:

How are wages and salaries different from interest and rent income? It is not earned through actual labor. ... Direct - consumers pay the taxes directly to the government. Indirect - consumers are charged on goods or services and the taxes are sent to the government.

Explanation:

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7. The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet show

irina1246 [14]

Answer:

The firm's cash flow to creditors during 2018 was –$85,000

Explanation:

The firms cash flow to creditors would be calculating by substracting the interest expense of the firm to the long-term debt taken during the period.

Cash flow to creditors = Interest expense – Net new LTD borrowing

Cash flow to creditors = Interest expense – (LTDend – LTDbeg)

Cash flow to creditors = $255,000 – ($2,210,000 – 1,870,000)

Cash flow to creditors = –$85,000

6 0

3 years ago

Arbor Systems and Gencore stocks both have a volatility of 33%. Compute the volatility of a portfolio with 50% invested in each

fiasKO [112]

Answer:

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

Explanation:

The formula to compute the volatility of a portfolio

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

Here,

The standard deviation of the first stock is σ₁

The standard deviation of the second stock is σ₂

The weight of the first stock W₁

The weight of the second stock W₂

The correlation between the stock c

a) If the correlation between the stock is +1

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times1} \\\\=0.33$

Hence, the volatility of the portfolio is 0.33 0r 33%

b) If the correlation between the stock is 0.50

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.5} \\\\=0.29$

Hence, the volatility of the portfolio is 0.29 0r 29%

c) If the correlation between the stock is 0.00

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.0} \\\\=0.23$

Hence, the volatility of the portfolio is 0.23 0r 23%

d) If the correlation between the stock is -0.50

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-0.5} \\\\=0.17$

Hence, the volatility of the portfolio is 0.17 or 17%

e) If the correlation between the stock is -1

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-1} \\\\=0$

Hence, the volatility of the portfolio is 0

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

4 0

3 years ago

_______ is defined in marketing terms as the basic problem-solving benefits consumers are seeking.

omeli [17]

The term that is being referred to the description is CORE CUSTOMER VALUE. The core customer value is a marketing term that describes the fundamental benefits of problem solving that consumers are looking for. The customer value are classified into two and these are the perceived and the desired value.

7 0

3 years ago

Dan Pink argues that for 21st century tasks in creative businesses the mechanistic, reward-and-punishment approach will not work

Ber [7]

Answer: True

Explanation:

This statement is true. Dan Pink argued that when it came to creative businesses, it would be best to use intrinsic as opposed to extrinsic rewards to encourage employees as extrinsic rewards such as money could constrain creativity.

Intrinsic rewards are those that are psychologically rewarding such as giving employees tasks that are fulfilling and make them feel part of the team as well as positive feedback from employers.

8 0

2 years ago

how would a significant increase in consumption and economic activity among a nations consumers affect the nation economy

jeka57 [31]

When consumption increases, factories produce more, consequently having to expand, when they expand they hire new employees, meaning that more people have money to buy more things and boost the market.

It is almost like the balance of an ecosystem, if everything works well, the tendency is to continue improving

7 0

3 years ago