Answer:
B. GDP includes non market production and is therefore a good measure of a nation's overall welfare
Explanation:
- A GDP is a total values of the goods and the services that are produced within a given country border and thus is the most common measure of measuring the country in terms of the size of the economy.
- Thus can tell the health of the country and is the monetary value of all the goods and services. The non market activities include the production of the food at homes these services don't account for the in-country GDP.
Answer:
Coupon= $30 per period.
20 period for semi annual coupon payment.
28.148% discount rate
Explanation:
1.) Coupon rate * face value of bond = coupon
semi annual rate =6%/2=3%
Coupon= 1000 *3%= $30 per period.
2.) t= number of periods = years of maturity * coupon payment semi-annual
t= 10 * 2 = 20 periods.
3. Discount rate formula =C+[(F-P)/t] / (F+P/2)
where C=coupon payment annual
F= face value of security
P=price of security= 1000 *8%=80
t= years of maturity.
so we have⇒ 60+[(1000-80)/10]/(1000+80)/2
=152/540
=28.148%
Answer:
Land 373,500
Building 1,100,000
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land improvements 67,000
Fence 55,000
Sign 12,000
Explanation:
Land cost:
cash 160,000
note payable 145,000
delinquent property tax 4,000
insurance costing 1,500
level the land 3,000
soil <u> 60,000</u>
Total land: 373,500
The land will be recorded for all the cost necessary to get it ready for use.
The soil, once added can't be differentiate from the original land. It is added to the land is not an improvement.
The office building will be for 1,100,000
land improvements will be the fence and signs:
fence 55,000
sign <u> 12,000 </u>
total 67,000
Answer:
5.6%
Explanation:
Internal growth rate can be calculated as below:
Internal growth rate = (Return on asset x Retention Rate)/[1 - (Return on asset x Retention Rate)]
Retention rate = 1 - Payout ratio = 1 - 30% = 70%
Return on asset = Net income/Asset = 82,490/1,089,500 = 7.6%
Putting all the number together, we have:
Sustainable growth rate = (7.6% x 70%)/[1 - (7.6% x 70%)] = 5.6%
