Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
The correct answer is E. Share of customer.
Explanation:
Customer participation reflects the way in which customers take part in the process and the degree to which they participate. It is especially important for many service processes, particularly if the contact with the customer is (or should be) high. A good starting point to increase customer participation is to make the process more visible to the customer. Allowing customers to see what normally remains hidden from their view is part of Harvey’s service design, a Canadian chain of fast food restaurants. There you can see the workers in a sanitary and orderly workplace roasting the meat, and one can choose the type of additional ingredients you want. An even bolder step is to allow customers to participate in selected backroom processes, in order to turn them into shown processes.
The corridor is the vertical section of the supply curve of reserves in the federal fund market.
Answer:
Trade creation
Explanation:
Trade creation is the process where there is increase in economics welfare as a result of joining a free trade area for example a customs Union.
Consumption experiences a shift from high cost producers to low cost producers causing expansion in trade.
In the given instance due to formation of free trade agreement, high cost plastic production is now replaced with low cost import of plastics from the other company.
There is a shift from high cost producers to low cost producers as a result of trade agreement between the two nations.
Answer:
C. both liquid and a store of value.
Explanation:
Treasury Bonds are fixed interest long term government debt instrument issued by the government through the monetary authorities (Federal Reserve or Central Bank) to raise fund from the public. Treasury bond has a maturity of between 10 and 30 years.
Treasury bonds is one of the most liquid financial instrument in the world as it can be turned to cash within a day.
The T-Bond, as treasury bonds is often called is a good store of value as it pays interest and the principal is backed by a legal contract.
