Answer:
Explanation:
a)
The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.
b)
If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.
c)
Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant
<span>This is why the threat of potential entrants in this industry is so high. Because of all of the opportunities and financing plans, it is easy for someone who wants to start a restaurant to do so. The threat of potential entrants to other restaurants remains high because of new restaurants always popping up.</span>
Answer:
Variable cost= $73.50
Explanation:
The high low method is used to get the fixed and variable cost of a business activity given limited data. It involves taking the highest and lowest points, then comparing the total cost at these points.
We use the following formula
Variable cost= (Highest activity cost - Lowest activity cost)/ (Highest activity unit - Lowest activity unit)
Variable cost= (207,250- 97,000)/ (5,900-4,400)
Variable cost= 110,250/ 1,500
Variable cost= $73.50
I believe
D) all of these
Hope I helped :)
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Answer:
The correct answer is b) The production possibilities frontier is usually bowed outward
Explanation: The production possibilities frontier can bow outward (usually), inward (sometimes), or be a straight line (rare).
When it bows outward, it is because the production capacity of a firm or a national economy is growing, and when it bows inward, it is because the economy is shrinking.