1. The risk free rate of return is often measured by the return on US Treasury Bills. True or False?

What is capital? in your own words. economics.

Bezzdna [24]

Answer:

In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization

4 0

2 years ago

Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average

Sladkaya [172]

Answer:

$22,780

Explanation:

The computation of the total amount of indirect manufacturing cost incurred is shown below:

= Variable manufacturing overhead + fixed manufacturing overhead

where,

Variable manufacturing overhead = Number of units produced × variable manufacturing overhead per unit

= 4,600 units × $1.30

= $5,980

Fixed manufacturing overhead = Number of units produced and sold × fixed manufacturing overhead per unit

= 5,600 units × $3

= $16,800

So, the total indirect manufacturing cost is

= $5,980 + $16,800

= $22,780

6 0

3 years ago

A(n) ______close to a cover letter leads to more interviews because you are contacting the employer.

rosijanka [135]

Study showed that an active close to a cover letter is better in writing a cover letter

A close and active engagement will excite the employer and invite curiosity.It will make the employer feel that you understand them, therefore will lead to more interviews

4 0

3 years ago

Read 2 more answers

What is the payback period for a project with an initial investment of $180000 that provides an annual cash inflow of $40000 for

Ahat [919]

Answer:

Option b: 5.2 Years

Explanation:

Payback period is defined as the amount of time it takes for cash returns or cash inflows of a project to recover the initial investment required for the project.

Payback period is estimated using the cumulative cashflows. Beginning from the initial investment, deduct annual cash flows of each successive year until the cumulative cashflow turn positive.

Cashflow Cumulative Cashflow

Year 0 ($180,000) ($180,000)

Year 1 $40,000 ($140,000)

Year 2 $40,000 ($100,000)

Year 3 $40,000 ($60,000)

Year 4 $25,000 ($35,000)

Year 5 $25,000 ($10,000)

Year 6 $50,000 $40,000

Year 7 $50,000 $90,000

Year 8 $50,000 $140,000

*Figures in brackets show negative cashflows

From the table above, it can be observed that the cumulative cashflow turn positive after year 5, which means that the payback period for the project will be somewhere between year 5 and year 6. Therefore, assuming a constant rate of cash inflows during the year, payback period for the project can be computed as

Payback period = 5 Years + (10,000/50,000) Years

Payback Period = 5.2 Years

7 0

3 years ago

Assume stock A costs $100 at t = 0 in a two-period world. There are two scenarios at t = 1: good and bad. In the good scenario t

Arada [10]

Answer:

The offer at $4.60 by the broker is higher than the calculated fair value of $4.545 hence i will not take up his offer

Explanation:

Given data:

stock A = $100 at t = 0

in two worlds : good scenario ; stock A = $120

bad scenario ; stock A = $70

probability = 0.5

annual risk less rate = 10% = 0.1

To determine if to take the offer or not we have to calculate the call option using the given parameters

Cu = $\frac{(0.5*10) + (0.5*0)}{(1 + 0.10)}$ = $4.545

The offer at $4.60 by the broker is higher than the calculated fair value of $4.545 hence i will not take up his offer

3 0

3 years ago