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BabaBlast [244]
3 years ago
11

Antonio’s makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni

informed him of a 25% increase in price of pepperoni. What happens in the market for Antonio's pizzas?
Business
1 answer:
Lynna [10]3 years ago
7 0

Answer:

At first, It will have no impact.

Later it will make the equilibrium price go higher. Quantity unchanged

Explanation:

First The raw material cost increase in the pepperoni will decrease the profit of Antonio's pizzas with that ingredient. It will not have an impact on the pizzas market.

But once after, Antonio's decides to markup the price, to get their previous profit margin back, the price of the pizzas will increase and because is the only supplier around campus their demand will not react (low to any elasticity to price) to the price rise and accepts the new price.

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Journalizing issuance of stock—at par and at a premium
suter [353]

Answer:

a.

Cash                                                                           27000 Dr

     Common Stock                                                            13500 Cr

     Paid in capital in excess of par-Common stock         13500 Cr

b.

Cash                                                    135000 Dr

     Preferred Stock                                   135000 Cr

Explanation:

a.

When we issue stock at premium, we always record the amount received from such issuance of stock at full. So, the cash account will be debited for 4500 * 6 = 27000

However, we record the common stock issued at par value and the remaining is credited under the reserve account which is Paid in capital in excess of par.

Thus the common stock will be credited by its par value of 4500 * 3 = 13500 and the remaining 4500 * 3 will be credited to the Paid in Capital account.

b.

The par value of the preferred stock is 4500 * 30 = 135000

Thus the preferred stock is issued at par and we simply debit the cash received from the issue and credit the preferred stock.

4 0
3 years ago
The positive relationship between price and quantity supplied, other things being equal, is considered to be:________
Bas_tet [7]

Answer:

The answer is D.

Explanation:

The correct answer is D. universally true for all markets

Other things being equal, as the price of goods and services increase, producers/firms tend to produce more(this is the popular law od supply) inorder to take advantage of the high revenue.

Unlike demand, for supply, price and quantity supplied are directly related.

4 0
3 years ago
A 30-year maturity bond has a 6.7% coupon rate, paid annually. It sells today for $881.17. A 20-year maturity bond has a 6.2% co
geniusboy [140]

Answer:

Rate of return

30 year bond =  42%

20 year bond = 45%

Explanation:

First of all find current yield on 30 year maturity bond

We will use PV of annuity formula to calculate current YTM

Coupon Payment = 6.7% x 1000 = $67

$881.17 =( $67( 1- ( 1 + r )^-30 ) / r ) + ( 1000 / ( 1 + r )^30 )

r = 0.0773 = 7.73%

Current YTM is 7.73%

Now calculate the current yield for 20 years maturity bond

Coupon Payment = 6.2% x 1000 = $62

893.1 = ( ( $62 x ( 1 - ( 1 + r )^-20 ) / r ) + ( 1000 / ( 1 + r )^20 )

r = 0.0723 = 7.23%

As given

5 years from now the YTM on 30 Year bond will be 7.70% and on 20 Year bond will be 7.20%.

Now calculate

Price of the 30 year bond Bond after 5 year at YTM of 7.7%

Price of the Bond = ( $67 x ( 1 - ( 1 + 0.077 )^-(30-5) ) / 0.077 )+( 1000 / ( 1 + 0.077 )^(30-5) ) = $890.46

Price of the 20 year bond Bond after 5 year at YTM of 7.2%

Price of the Bond = ((6.7%*1000)*(1-(1+0.072)^-15)/0.072)+(1000/(1+0.072)^15)

( $62 x ( 1 - ( 1 + 0.072 )^-(20-5) ) / 0.072 )+( 1000 / ( 1 + 0.072 )^(20-5) ) = $910.06

Increase in price of 30 year bond = $890.46 - $881.17 = $9.29

Increase in price of 30 year bond = $910.06 - $893.1 = $16.96

Future value of Coupon payment for 5 years

30 year bond = 67 x ( 1.072^5 -1 ) / 0.072 = $386.84

20 year bond = 62 x ( 1.072^5 -1 ) / 0.072 = $357.97

Total return = FV of Coupon payment + Price increase

30 year bond = $386.84 + $9.29 = $396.13

20 year bond = $357.97 + $16.96 = $374.93

Rate of return =  

30 year bond = $396.13 / $881.17 = 0.45 = 45%

20 year bond = $374.93 / $893.1 = 0.42 = 42%

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What is one force facing U.S businesses today ?
Rashid [163]
Employee healthcare , hiring employee increeccing profit
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3 years ago
1.Describe the role that workers play in the game of economics.
antoniya [11.8K]
In the game of economics, workers play a double role, functioning as both consumers and producers. The workers role is unique in the game of economics since they are directly involved. They are the ones who will manufacture, market, sell the products in an economy.
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3 years ago
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