If interest rates fall and the yield to maturity decreases by? 0.8%, what will happen to the price of the? bond

As the manager of a golf resort, you want to increase the number of tee times sold by 10%. Your staff economist (and junior cadd

Alex73 [517]

Answer:

The price of tee-time should be reduced by 6.67%.

Explanation:

The price elasticity of demand for tee times is –1.5.

The manager wants to increase the number of tee times sold by 10%.

The price elasticity of demand shows the change in quantity demanded due to a change in the price level. It is the ratio of the percentage change in quantity demanded and percentage change in price.

Price elasticity = $\frac{\% \Delta Q}{\% \Delta P}$

- 1.5 = $\frac{10 \%}{\% \Delta P}$

$\% \Delta P = \frac{10}{- 1.5}$

$\% \Delta P = - 6.67 \%$

7 0

2 years ago

A company issued a short-term note payable to a bank with a stated 12 percent rate of interest . The bank charged a .5% loan ori

Mandarinka [93]

Answer:

17%

Explanation:

If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%

The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.

Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.

8 0

3 years ago

Read 2 more answers

A cosmetics company is planning the introduction and promotion of a new lipstick line. The marketing research department has fou

Mademuasel [1]

Answer:

p = 59.11 dollars

Explanation:

Given

Price: p(x) = 8eˣ (0 ≤ x ≤ 2)

Revenue; R = x*p = 8xeˣ

p = ? when R be at maximum

We can apply

dR/dx = d(x*p)/dx = 0

⇒ d(8xeˣ)/dx = 8*(1*eˣ + x*eˣ) = 0

⇒ eˣ*(1 + x) = 0 ⇒ x = - 1

as x = - 1 ∉ [0, 2]

then, we have

p(0) = 8e⁰ = 8

R = 0*8 = 0

If x = 1

p(1) = 8e¹ ≈ 21.74

R = 1*21.74 = 21.74

If x = 2

p(2) = 8e² ≈ 59.11

R = 2*59.11 = 118.22

Implies that, R(x) is maximum at x = 2.

Thus, the price that maximize the revenue of the company is 59.11 dollars.

7 0

3 years ago

For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the fol

Veseljchak [2.6K]

Answer:

Income Tax Expense (Dr.) $49,080,000

Deferred Tax Liability (Cr.) $49,080,000

Explanation:

Income tax expense = ( Taxable Income for the year + building and equipment taxable amount + Prepaid Insurance - Liability or contingency Loss ) * Tax rate

Income Tax expense = ( $117,000,000 + $14,700,000 + $2,300,000 - $11,300,000) * 40%

Income Tax expense = $49,080,000

8 0

3 years ago

One goal of bankruptcy law is to encourage the continued use of credit. true or false

Mademuasel [1]

True
After bankruptsy your credit is wiped therefore in order to buy a home for example you must have a certan amount of credit so it is encourages that you build it up

4 0

3 years ago