Bonds that are more a source of savings than an investment

Consider a two-period endowment economy populated by identical house- holds with preferences defined over consumption in period

anzhelika [568]

Answer:

Explanation:

See attachment below

4 0

4 years ago

Clarke Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are

Gelneren [198K]

Answer:

a- Cost of finished goods= $54000

b- Cost of ending wip =$17290

c- Cost of beginning and total= $71290

Explanation:

The question has three requirements mentioned as follows;

a- Determine the cost of goods transferred to finished goods inventory.

b- Determine the cost of the ending work-in-process inventory.

c- Determine the total cost of the beginning work-in-process inventory plus the current manufacturing costs?

The solutions to each requirement are as follows:

a- cost of finished goods?

The cost of finished goods (9000 units) includes all of the production cost per unit which in this question is $6.

So the cost of finished goods is =$6×9000

Cost of finished goods= $54000

b- cost of ending work -in-process inventory?

Ending work-in-process inventory are 3500 units of which 10% has been converted. This implies that ending work-in-process inventory would have consumed 100% material but 0% conversion cost since they are under process yet but 10% (i.e 3500×10%=350 units) of the work-in-process have been converted which means only 10% of the work-in-process inventory would have consumed total cost, therefore the cost of ending work-in-process would be:

cost of ending wip inventory= (3500×$4.80) + (350×$1.40)

Cost of ending wip =$17290

c- cost of beginning wip and current manufacturing cost?

Cost of beginning wip and current manufacturing cost would be the total cost of finished stock and ending work-in-process inventory (i.e adding answer of a and b)

cost = $54000+$17290

cost= $71290

4 0

3 years ago

A large group of fans are upset about the high price of tickets to many events. As a result of their lobbying efforts, a new law

babymother [125]

Answer: Assuming there are a fixed amount of seats in the stadium, all seats are available to be sold, and the price of tickets before the ceiling was at an equilibrium point above $50.

The price ceiling will create a SHORTAGE of tickets, which will be greater if demand is more ELASTIC, and THE SAME NUMBER OF people will attend the events. Group of answer choices

3 0

4 years ago

Read 2 more answers

Ronald's Fast Food just paid their annual dividend of $1.05 a shareThe stock has a bela of 1.6. The return on the US Treasury bi

natali 33 [55]

Answer:

19.2 %

Explanation:

Using the Capital Asset Pricing Model we can simply input the given information.

Formula

Cost of Equity = Rf + B * (Mr - Rf) where,

Rf = Risk free rate = T-Bill rate

B = Beta

Mr = Market return

so,

Cost of Equity = 8 + 1.6 * (15-8)

= 19.2 %

6 0

3 years ago

Suppose you operate a coal power plant and is considering upgrading the flue gas desulphurisation (FGD) facility (or "scrubbers"

Novosadov [1.4K]

Answer:

The present value is $19,039

Explanation:

The computation of the Present value is shown below

= Present value of all yearly cash inflows after applying discount factor

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 2%

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.02^1 = 0.9804

For Year 2 = 1 ÷ 1.02^2 = 0.9612

For Year 3 = 1 ÷ 1.02^3 = 0.9423

For Year 4 = 1 ÷ 1.02^4 = 0.9238

So, the calculation of a Present value of all yearly cash inflows are shown below

= (Year 1 cash inflow × Present Factor of Year 1) + (Year 2 cash inflow × Present Factor of Year 2) + (Year 3 cash inflow × Present Factor of Year 3) + (Year 4 cash inflow × Present Factor of Year 4)

= ($5,000 × 0.9804) + ($5,000 × 0.9612) + ($5,000 × 0.9423) + ($5,000 × 0.9238)

= $4,901.96 + $4,805.84 + $4,711.61 + $4,619.23

= $19,039

We take the first four digits of the discount factor.

4 0

3 years ago