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3 years ago

a decision maker whose utility function graphs as a straight line is

1 answer:

mote1985 [20]3 years ago

4 0

<span>A decision maker whose utility function graphs as a straight line is risk neutral.

When you are describing someone who is risk neutral, all that is being stated is that they are not bothered by a risk or no risk. The investor/decision maker is fine with either option and are dead set in the middle of the risk spectrum. </span>

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Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

Tatiana [17]

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

7 0

3 years ago

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently

V125BC [204]

AFC mean average fixed costs. This is equal to total fixed costs divided by the amount of output. If the output is equal to 1000, then the AFC is

AFC = $250.00 ÷ 1,000
AFC = $ 0.25

I hope I was able to answer your question. Thank you and have a good day.

6 0

3 years ago

Dixie Mart plans to pay dividends of $1.36, $1.15, $1.35, and $0.40 at the end of the next four years, respectively. After that,

Vera_Pavlovna [14]

Answer:

The correct answer is C. $46.50.

Explanation:

The current value of one share of stock is the present value of all expected future cash flows. The present value (PV) of cash flows in each year is calculated as follows.

PV = Future value / (1 + Rate of return)^Number of years

The future value is the dividend received on the share in a particular year while the rate of return is 11.4% (i.e. 0.114).

Applying the above formula,

$PV_{1} = 1.36 / (1 + 0.114)^{1} = 1.221\\$

$PV_{2} = 1.15 / (1 + 0.114)^{2} = 0.927$

$PV_{3} = 1.35 / (1 + 0.114)^{3} = 0.977$

$PV_{4} = 0.40 / (1 +0.114)^{4} = 0.260$

$PV_{6} = 82.40 / (1 + 0.114)^{6} = 43.114$

Current value of share = $1.221 + $0.927 + $0.977 + $0.260 + $43.114

= $46.50

Hence, the correct option is C. $46.50.

6 0

3 years ago

If an existing asset is sold at a gain, and the gain is taxable, then the after-tax proceeds from this transaction would be equa

Zinaida [17]

Answer:

If an existing asset is sold at a gain, and the gain is taxable, then the after-tax proceeds from this transaction would be equal to:

Net proceeds from the sale less the taxes paid on the gain.

Explanation:

An illustration is given below. Company A received $70,000 from the sale of an Office Equipment with a tax basis of $40,000. The capital gains tax rate is 20%. How much would be the after-tax proceeds? The net proceeds minus the tax basis would result in the capital gains of $30,000. Then, the capital gains tax equals $6,000 ($30,000 * 20%). Therefore, the after-tax proceeds would be $70,000 minus $6,000, which is equal to $64,000.

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2 years ago

The Blue Utilities Company paid Sue $2,000 for the right to lay an underground electric cable across her property anytime in the

Reil [10]

Answer:

Explanation:

Sue is not required to recognize gross income from the receipt of the funds, but she must reduce her cost basis in the land by $2000.-

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3 years ago

​a decision maker whose utility function graphs as a straight line is

a decision maker whose utility function graphs as a straight line is