Answer:
B. the demand for a product and its price has a direct relationship
Explanation:
demand comes from the price which ultimately effects the proportions with the consumers purchasing the product. if the product is good enough with a fair price to come with it, the demand will increase, or if a product becomes more scarce the demand for it will increase along with the price raising.
Answer:
The goodwill is $1.1 million
Explanation:
In this question, first we have to compute the net asset which is shown below:
Net asset = Total asset - total liabilities
where,
Total asset = Land + building + inventory
= $1.7 million + $3.4 million + $2.2 million
= $7.3 million
And, the total liabilities = long term note payable = $1.5 million
So, the net asset would equal to
= $7.3 million - $1.5 million
= $5.8 million
Now the goodwill equal to
= Cash purchase price - net asset
= $6.8 million - $5.8 million
= $1.0 million
Answer: True
Explanation:
When a sector contributes a significant amount to GDP suffers a shock, the GDP of the nation will be shocked as well. Proportionally it goes that the greater the shock to the sector, the greater the shock to the GDP.
For instance, Agriculture contributes a significant amount to GDP. If a drought were to hit that reduced harvests by 50%, the GDP will suffer a huge shock as well because the contribution from Agriculture will be significantly less.
Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%
Explanation:
A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
Where C – Interest payment = $90
FV – Face value of the security
= $1000
PV – Present value/curent market value = $960
t – years it takes the security to reach maturity= 10 years
imputing the values and calculating,
yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
= $90 + (1000-960)/10} / 1000 + 960 /2
$90 + 4= $94 /980= 0.0959
therefore Yield to maturity is 9.59%
B) After tax cost of debt = Yield To Maturity x (1 - tax rate)
=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =
9.59 % x 80%=7.672%
Answer:
$165,975
Explanation:
The computation of sales budgeted is shown below:-
For computing the Sales budgeted for February first we need to compute the January and February units.
January = 10,000 + (3% × 10,000)
= 10,000 + 300
= 10,300
February = 10,000 + (3% × 10,300)
= 10,000 + 309
= 10,309
Sales budgeted for February = For February × Each electric staplers
= 10,309 × $16.10
= $165,975
So, for computing the Sales budgeted for February we simply applied the above formula. The option is not available.
