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3 years ago

If a positive externality in consumption is present in a market, then

1 answer:

8 0

Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.

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Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of $1,038. The

Dmitriy789 [7]

Answer:

Coupon rate is 6.5%

Explanation:

Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

$1,038 = C x [ ( 1 - ( 1 + 6.1%/2 )^-14.5x2 ) / 6.1%/2 ] + [ $1,000 / ( 1 + 6.1%/2 )^14.5x2 ]

$1,038 = C x [ ( 1 - ( 1 + 0.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1 + 0.0305 )^29 ]

$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1..0305 )^29 ]

$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0..0305 ] + [ $1,000 / ( 1.0305 )^29 ]

$1,038 = C x 19.068 + $418.42

$1,038 - $418.42 = C x 19.068

$619.58 = C x 19.068

C = $619.58 / 19.068

C = $32.49

Coupon rate = 32.49 / $1,000 = 3.25% semiannual

Coupon rate = 3.25% per semiannual x 2 = 6.5% per year

3 0

3 years ago

The board of directors authorizes a cash or distribution of cash to its investors.a. Trueb. False

Novosadov [1.4K]

This assertion is accurate. A cash dividend or other cash payment to investors is approved by the board of directors.

<h3>Is the board of directors involved in the decision to distribute dividends?</h3>

Before a cash dividend is announced and later delivered to shareholders, a company's board of directors must determine whether to pay one and how much. The Board shall determine the amount of cash to be delivered to the Shareholders, both individually and collectively.

<h3>Dividends have been announced by the board of directors.</h3>

A company's interim dividend is the sum that the board of directors declares between two annual general meetings. Interim dividend is included in the definition of dividend under Section 2(35) of the Companies Act. It is at the board of directors' discretion to declare an interim dividend.

Learn more about interim dividend: brainly.com/question/28523087

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5 0

1 year ago

As Starbucks expands in Chile, the company wants store décor and paper goods used to be controlled by

Agata [3.3K]

The paper companies are the ones responsible. Either in chile or overseas in the uS

5 0

2 years ago

In March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inv

xeze [42]

Answer:

Journal entries

Date Account title and explanation PR. No. Debit ($) Credit ($)

June 15,2021 Purchases $85,500

Loss on purchase commitment $15,000

Cash $100,000

(To record the payment for the loss on

purchase commitment)

June 30,2021 Estimated loss on purchase

commitment $10,600

Estimated liability on purchase

commitment $10,600

(To record the loss on purchase commitment)

Aug 30,2021 Purchases $120,500

Loss on purchase commitment $19,900

Estimated liability on purchase

commitment $10,600

Cash $151,000

(To record the payment for the loss on purchase commitment)

Explanation:

For June 15, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $100,000 - $85,500 = $14,500

For June 30, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $151,000 - $140,400 = $10,600

For Aug 30, Loss on purchase commitment = Market price of inventory at June 30 - Market value of inventory at August 30 = $140,400 - $120,500 = $19,900

4 0

3 years ago

If an excise tax is imposed on restaurant meals, a. fewer meals will be produced and sold b. more meals will be produced and sol

solniwko [45]

Answer:

Correct option is (a)

Explanation:

Excise tax is an indirect tax which is not imposed on customers directly. Excise tax is imposed on producers or sellers for goods produced and they in turn transfer the burden of tax on customers in the form of higher prices. That is why, it is called indirect tax.

It is usually imposed on those goods such as liquor and tobacco whose consumption the Government needs to decrease. If excise tax is imposed on restaurant meals, then the restaurant will be able to produce and sell less at the same price it was charging earlier. If the restaurant wishes to sell more, then it will have to charge higher price.

6 0

3 years ago