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VARVARA [1.3K]
2 years ago
15

The athletics department at your university currently sells 50,000 tickets to football games at an equilibrium price of $40 each

. The university administration has asked that the athletic department not sell any tickets below $30. At a price of $30, the athletic department is willing to sell 20,000 tickets, but consumers are willing to purchase 80,000 tickets. Which of the following is a result of the new price floor?
(A) a surplus of 30,000 tickets
(B) a shortage of 30,000 tickets
(C) a surplus of 60,000 tickets
(D) a shortage of 60,000 tickets
(E) The price floor isn’t binding.
Business
2 answers:
Feliz [49]2 years ago
4 0

Answer:

(E) The price floor isn’t binding.

Explanation:

The restriction imposed by the administration is that prices should not be below $30, which means that the athletic department can continue selling tickets at the current equilibrium price of $40 each. If the administration had imposed a maximum price of $30, then there would be a shortage of tickets, but since the current price meets the administration's requirements, no change should occur.

The answer is (E) The price floor isn’t binding.

gavmur [86]2 years ago
3 0

Answer:

E

Explanation:

The price floor isn’t binding.

The administration only put a restriction on what is the least amount it can be sold for which is $30 ,therefore allowing the athletic department to continue selling tickets at the current equilibrium price of $40 each.

The current price meets the administration's requirements, no change should occur. Meaning that the price floor isn't binding

Price floor means the lowest (or minimum) price fixed by the company, government often it is higher than the equilibrium price of the commodity. It is mentioned that if a price floor is non-binding it means that it is set that is below the equilibrium or we can say the equilibrium price is above the floor price. A price floor below the equilibrium is nonbinding and hence, as a result of this price control, there will be no distortion in the market. As in this case.

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2 years ago
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose toda
polet [3.4K]

Answer:

1) The yield to maturity is required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of returns are interchangeable terms

2) Unlike YTM and required return, the coupon rate used as the interest rate in bond cash flow valuation, but is fixed percentage of par over the life of the bond used to set the coupon payment amount.

3) The coupon rate is constant at 10%. The YTM is 8%.

Explanation:

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3 years ago
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On July 1, 2019, Noble, Inc. issued 9% bonds in the face amount of $10,000,000, which mature on July 1, 2025. The bonds were iss
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Answer:

$322,400

Explanation:

Calculation for At June 30, 2021, Noble's unamortized bond discount

First step is to calculate unamortized bond for 2019-2020

Unamortized bond 2019-2020= $9,560,000 + [($9,560,000 × .1) - ($10,000,000 × .09)]

Unamortized bond 2019-2020=$9,560,000 + [($9,560,000 - $900,000)]

Unamortized bond 2019-2020=$9,560,000 + $56,000

Unamortized bond 2019-2020= $9,616,000

Second step is to calculate Unamortized bond for 2020-2021

Unamortized bond 2020-2021= $9,616,000+ [( × $9,616,000.1) - ($10,000,000 × .09)]

Unamortized bond 2020-2021=$9,616,000 + ($961,600 - $900,000)

Unamortized bond 2020-2021 = $9,677,600

Now let calculate unamortized bond discount

Unamortized bond discount =$10,000,000 - $9,677,600

Unamortized bond discount = $322,400

Therefore At June 30, 2021, Noble's unamortized bond discount should be $322,400

4 0
3 years ago
2700 thousand bonds with a face value of $1000 each, are sold at 106. The entry to record the issuance is
IceJOKER [234]

Date, bonds sold at a premium

Dr Cash $28620000000

   Cr Bonds payable $2,700,000,000

   Cr Premium on bonds payable $1,62,000,000

Explanation:

The total face value of the bonds is $1,000 x 2700,000 bonds = $2,700,000,000

since the bonds were sold at 106, their price was =

$2,700,000,000 x 106% = $28620000000

the difference between the face value and the actual market price = $2,862,000,000 - $2,700,000,000 = $1,62,000,000 must be recorded as premium on bonds payable (increases the bonds' carrying value)

<h3>What is the difference between market value and face value?</h3>
  • The market value is the actual price at which the security trades on the open market, as well as the price that fluctuates when the yield reacts to changes in interest rates.
  • The face value is determined by the issuing company. It may be the value at which the firm redeems the shares at some point in the future, but there is no guarantee.

Learn more about date and the interest expense:

brainly.com/question/20038664

#SPJ4

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Answer:

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Explanation:

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