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3 years ago

The most obvious benefit of specialization and trade is that they allow us to

1 answer:

6 0

The most obvious benefit of specialization and trade is that they allow us to: Consume more goods than we otherwise would be able to consume
When we do specialization, we could produce the goods that provide competitive advantage for us so we can produce that goods in a huge amount.
After that, we can trade the goods with other goods (which gives competitive advantage to other country) and trading countries could consume goods on a huge amount.

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The basic purpose of imposing legal reserve requirements on commercial banks is to: A. Assure the liquidity of commercial banks

Aliun [14]

Answer:

Provide a device through which the credit-creating activities of banks can be controlled

Explanation:

The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.

The legal reserve requirement is used by the government as a means to control the supply of money in the economy.

If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.

A high reserve requirement reduces the amount that banks can make available for loans.

I hope my answer helps you

5 0

2 years ago

You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for you

kati45 [8]

Answer:

The answer is 16 years.

Explanation:

The formula for calculating the value of an investment that is compounded annually is given by:

$V(n)=(1+R)^nP$

Where:

$n$ is the number of years the investment is compounded,

$R$ is the annual interest rate,

$P$ is the principal investment.

We know the following:

$25000=(1+0.06)^n \times 10000$

And we want to clear the value n from the equation.

The problem can be resolved as follows.

First step: divide each member of the equation by $10,000$ :

$\frac{ 25000}{10000}=(1+0.06)^n \times \frac{ 10000}{10000}$

$2.5=(1.06)^n$

Second step: apply logarithms to both members of the equation:

$log(2.5)=log (1.06)^n$

Third step: apply the logarithmic property $logA^n=n.logA$ in the second member of the equation:

$log(2.5)=n.log (1.06)$

Fourth step: divide both members of the equation by $log1.06$

$\frac{log(2.50)}{log (1.06)} =n$

$n= 15.7252$

We can round up the number and conclude that it will take 16 years for $10,000 invested today in bonds that pay 6% interest compounded annually, to grow to $25,000.

6 0

3 years ago

A national sales organization has implemented a set of training courses on its intranet, with a link that allows employees to fi

makkiz [27]

Answer:

b) knowledge management

Explanation:

Knowledge management is defined as the process in which an organisation creates, shares, uses and manages the information and knowledge of an organisation.

It is an approach multidisciplinary in nature to achieve the objectives of an organisational with the use of knowledge available.

It includes the courses which are taught in business administration, management, information system, library and information system.

7 0

3 years ago

Calculate the firm’s WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equ

tester [92]

Answer:

Before tax cost of debt is 7.12%

After tax cost of debt is 4.27%

Cost of equity is 10%

Explanation:

The before-tax cost of debt can be determined using excel rate formula as found below:

=rate(nper,pmt,-pv,fv)

nper is the number of semiannual payments the bond has i.e 20*2=40

pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50

pv is the current price =$1000*104%=$1,040.00

fv is the face value of $1000

=rate(40,37.50,-1040,1000)=3.56%

The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)

After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4

after-tax cost of debt=7.12%*(1-0.40)=4.27%

Cost of equity is determined using the below CAPM formula:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free rate of 4%

Beta is 1.2

Mr is the market return of 9%

Ke=4%+1.2(9%-4%)=10.00%

7 0

3 years ago

It will cost $2,500 to acquire an ice cream cart. Cart sales are expected to be $1,500 a year for three years. After the three y

Dvinal [7]

Answer: 1 year and 6 months

Explanation:

The cash flows are as follows,

Year 0 = ($2,500)

Year 1 = $1,500

Year 2 = $1,500

Year 3 = $1,500

Payback period is the time it will take to break even the intial investment (In this question the initial investment is $2,500)

The sum of the cashflows of year1 and year2 is equal to $3,000

which means that the payback period is somewhere bbetween year 1 and year2

1500/3000 = 0.5 year or 6 months

the total payback period is 1 year and 6 months

3 0

3 years ago