Answer:
The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.
Explanation:
Solution
<em>Given that:</em>
Leakage problem occurs or happens within an economy when the money goes out of the economy, which leads to a loss in the economic value of goods and services, and also leads to loss in profits making.
This would lead to an unwillingness of borrower's to obtain loans from banks in the expansion of the firm or to invest in factories.
Answer: B. 1 DEF Jan 50 Call
Explanation:
The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.
When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.
In this case it will do so by subtracting the dividend from the call;
= 55 - 5
= $50
The customer will then have 1 DEF Jan 50 Call
.
Answer:
5,409 books
Explanation:
to calculate break even point in units we can use the following formula:
break even point in units = total fixed costs / contribution margin per unit
- total fixed costs = $53,000
- contribution margin per unit = sales price - variable costs = $12 - $2.20 = $9.80
break even point in units = $53,000 / $9,80 = 5,408.16 ≈ 5,409 books
in $, that would equal = 5,409 books x $12 per book = $64,908
Answer:
D.
Explanation:
A rent ceiling is a government regulation that makes it illegal to charge a rent higher than a specified level. Meaning that the landlord of a building cannot charge a rent amount higher than the maximum price set forth by the rent ceiling. Landlords that violate this law are usually fined by the government as a consequence.
Answer:
$30.07
Explanation:
Rocky river company uses target pricing
The production volume is 602,000 units
The market price is $34 per unit
The total assets is $13,900,000
The desired operating income is 17% of the total assets
= 17/100 × 13,900,000
= 0.17×13,900,000
= 2,363,000
The first step is to calculate the sales value
= 602,000 ×34
= 20,468,000
The total cost can be calculated as follows
= Sales value-desired operating income
= 20,468,000-2,363,000
= 18,105,000
Therefore the target full product cost per unit can be calculated as follows
= Total cost/production volume
= 18,105,000/602,000
= $30.07
Hence the full target product cost per unit is $30.07
