Which of the following will always be true when an economy is in long-run equilibrium?

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor

Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return = 10% × ( 1 - 0.20 )

rate of return = 8 %

5 0

3 years ago

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eati

Alexeev081 [22]

Answer:

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot dog, and the two goods fill the same need in Harry's life. The price of hot dogs has been extremely volatile for the past several years, and this year is no exception Hot dog prices decreased tremendously this month Assuming hot dogs and hamburgers are substitutes for Harry, what is the effect on Harry's demand for hamburgers due to the decrease in the price of hot dogs?

There will be a movement down along his demand curve

Explanation:

Reason behind the decrease in demand curve for hamburger would be as a result of decrease in the price of hot dog which would increase the demand since they could be substituted for each other because of their benefits; hence, the demand curve for hamburger would be decreased or mov e down

0 0

3 years ago

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

3 years ago

The return on the market portfolio is currently 12%. Mobile Phone Corporation stockholders require a rate of return of 30% and

Triss [41]

Answer:

The risk free will be 3.82%

Explanation:

We post the CAPM formula and how given data

$Ke= r_f + \beta (r_m-r_f)$

risk free ?

market rate 0.12

premium market market rate - risk free ?

beta(non diversifiable risk) 3.2

Ke = 0.3

Now we post the know values and solve for risk free

$0.3= risk-free + 3.2 (0.12 - riskfree)$

$0.3 = risk-free + 3.2 \times 0.12 - 3.2riskfree$

$0.3 = 0.384 - 2.2riskfree$

$0.3-0.384 = -2.2riskfree$

$-0.084/-2.2= riskfree$

risk free = 0.0381818181818182‬ = 3.82%

5 0

3 years ago

After reaching the break-even point, a company's net operating income will increase by the?

ArbitrLikvidat [17]

The answer is Contribution Margin.

What is break-even point?

A transaction or investment's breakeven point (break-even price) is established by comparing the market price of an asset to its initial cost; the breakeven point is reached when the two prices are equal. In business accounting, the breakeven point is calculated by dividing the entire fixed costs of production by the revenue per unit less the variable costs per unit. Those expenses that don't fluctuate regardless of how many units are sold are referred to in this context as fixed costs. The production level at which all sales for a product net the same amount of money as all expenses is known as the breakeven point.

To know more about break-even point visit:

brainly.com/question/12181423

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7 0

2 years ago