Answer:
3) 5,611.86
4) 173.62
5) 47099.47
6) 410.64
7) 45618.7
Explanation:
3) Answer : 5300(1.029)^2 = 5,611.86
4) Answer : 100(1.082)^7 = 173.62
5) Answer : 18,100(1.136)^7.5 = 47099.47
6) Answer : 270(1.15)^3 = 410.64
7) Answer : 43,000(1.03)^2 = 45618.7
Answer:
Sales revenue $ 710,000
Cost of goods sold $ 385,000
Gross Profit $ 325,000
Selling expense 71,000
Administrative expense 91,000
Operating Income 163,000
Non-Operating Income
Interest revenue 44,000
Gain on sale of investments 91,000
Interest expense (28,000)
Restructuring costs (67,000)
Income before taxes 203,000
Income tax expense (50,750)
Net Income 152,250
Shares outstanding 100,000
Earnings per share $1.52
Explanation:
We need to determinate gross profit.
then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.
Answer:
Output will be lower
Explanation:
Supply shock is an economic event that occurs because of sudden changes in the supply of goods and services within an economy.
A negative supply shock will shift the SRAS to the left and it will increase the price of the good and decrease the quantity, the new equilibrium will be at lower output and higher inflation.
When the economy suffers a permanent negative supply shock, the supply may keep on increasing or decreasing rapidly.
If the central bank does not respond by changing the autonomous component of monetary policy, then the output will be lower.
This is because permanent supply shock will lead to higher prices which disrupts the production and hence the output falls.
Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. A. The New York City government
3. B. Municipal bonds
4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments
5. B. Treasury bonds
Explanation:
1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.
2. The City of New York issued to bonds in question so it is a New York City Government bond.
3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.
4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.
5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.
