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3 years ago

Nominal gross domestic product is a poor measure of economic growth because

Business

1 answer:

Softa [21]3 years ago

8 0

The value will also change when there are changes in price, which do not only reflect the change in quantities

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Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by chan

aleksley [76]

There will be decrease in profit if dropping of sour cream. So that means Keith Inc would lose $4,000.00

3 0

4 years ago

Read 2 more answers

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be

il63 [147K]

Solution:

Annual coupon payment of the bond is $80

At the beginning of the year, remaining maturity period is 2 years.

Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.

New price of the bond = present value of the final coupon payment + present value of the maturity amount.

New price of the bond = $\frac{80}{1+r} +\frac{1000}{1+r}$

where, r is the yield to maturity at the end of the year.

Substitute 0.06 for r in the above equation,

Therefore new price of the bond is = $\frac{80}{1+0.06} +\frac{1000}{1+0.06}$

= $\frac{1080}{1.06}$

= $ 1010.87

Calculating the rate of return of the bond as

$\text{rate of return}=\frac{\text{coupon+new price-old price}}{\text{initial price}}$

$=\frac{80+1018.87-1000}{1000}$

= 0.09887

Therefore, the rate of return on the bond is 9.887%

≈ 10 %

4 0

3 years ago

Tyrone has three options on how to spend his saturday afternoon: to go out with friends, watch a movie, or wash his car. tyrone'

Ilia_Sergeevich [38]

If Tyrone has three options on how to spend his saturday afternoon: to go out with friends, watch a movie, or wash his car. tyrone's opportunity cost of washing his car would be: the value of going out with friends OR watching a movie

<h3>What is opportunity cost?</h3>

Opportunity cost can be defined as an way in which alternative is forgone because another alternative was chosen.

Based on the given scenario the opportunity cost will be the value of going out with friends or the value of watching a movie.

Therefore the correct option is D.

The complete question is:

Tyrone has three options on how to spend his Saturday afternoon: go out with friends, watch a movie, or wash his car. Tyrone's opportunity cost of washing his car would be:

a) the value of going out with friends.

b) the value of watching a movie.

c) the value of going out with friends AND watching a movie.

d) the value of going out with friends OR watching a movie.

Learn more about Opportunity cost here:brainly.com/question/481029

#SPJ1

6 0

1 year ago

Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and

kaheart [24]

Answer:

times interest earned= 9.49

Explanation:

Giving the following information:

Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and income taxes of $36,900.

First, we need to calculate the income before taxes and interest expense:

EBIT= 75,200 + 13,200 + 36,900= $125,300

Now, to calculate the times interest earned we need to use the following formula:

times interest earned= EBIT/ interest expense= 125,300/13,200= 9.49

3 0

3 years ago

Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company'

tatiyna

Answer:

$5,000= ending inventory

Explanation:

Giving the following information:

Gross margin is normally 40% of sales.

Sales= $25,000

beginning inventory= $2,500

purchases= $17,500

First, we need to determine the cost of goods sold:

COGS= 25,000*0.6= 15,000

Now, using the following formula, we can calculate the ending inventory:

COGS= beginning inventory + cost of goods purchased - ending inventory

15,000= 2,500 + 17,500 - ending inventory

5,000= ending inventory

5 0

3 years ago