Answer:
Given these facts, which state would you expect the price of prostitution services to be higher? Why?
- Since the risks associated to prostitution are higher in New Jersey, we could assume that the price for these services will be higher there. The supply curve of prostitution shift to the left, increasing the price and decreasing the quantity.
Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?
- Since the price is higher in New Jersey, the quantity demanded will be lower. Also, the risks associated to consuming the service will shift the demand curve to the left, reducing the quantity.
Answer:
B) Leave the equilibrium price unchanged.
Explanation:
Oligopolistic market is the arrangement where few companies offer same product to the customers. There is very less competition in the market so every supplier has fair chance for operating their business successfully. The kinked demand model curve in oligopolistic market would leave the equilibrium price unchanged.
Answer:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.
b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Explanation:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.
b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose
shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.
Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Answer:
1. $1,821.76
2. 7.87%
Explanation:
We use the PMT formula that is shown in the attachment below:
Provided that
Present value = $75,200
Future value = $0
Rate of interest = 7.6% ÷ 2 = 0.6333333%
NPER = 48 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $1,821.76
2. Now the effective annual rate is
= (1 + APR ÷ number of months)^number of months - 1
= (1 + 7.6% ÷ 12)^12 - 1
= 7.87%