We answer this question by bringing about the following supposition:
<span>The corrective tax policy and the number of pollution permits available do not change in spite of this demand shift.</span>
Answer:
4.92%
Explanation:
we have to calculate the market price of the bond in one year from now but in order to do this we have to calculate the yield to maturity:
YTM = {80 + [(1,000 - 750)/10] / [(1,000 + 750)/2] = 105 / 875 = 12%
the market price of the bond in one year is:
PV of face value = $1,000 / 1.12⁹ = $360.61
PV of coupon payments = $80 x 5.3282 (PV annuity factor, 12%, 9 periods) = $426.26
market price one year from now = $786.87
capital gains yield = ($786.87 - $750) / $750 = 4.92%
Answer: c. $1,422,000
Explanation:
The Cost of Goods that goes into the Consolidated income statement would be the goods that were sold to unaffiliated companies. The original cost of production would apply:
= Quantity sold to unaffiliated companies in 20X8 * Cost for Pepper
= 18,000 * 79
= $1,422,000
Answer: Return on sales is calculated based on sales volume and not profit
Explanation:
This can be explained by understanding the scenario; the price that discounters pay is lower than any other channel. Discounters have high variable cost, they only pay $52 for the Russel with 41percent return on sales. They also larger fixed costs than the other channels and the return on sales is calculated based on sales volume and not profit.
