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3 years ago

What is the typical relationship between time and interest rate?

Business

1 answer:

Margaret [11]3 years ago

4 0

Answer:

B. Shorter time periods usually have no affect on interest rates.

Explanation:

The interest rate is correllate to the potential risk of the investment.

As in a long period, there’re more unpredetermined risks, and we normally say “high risk high return). Thus a longer time period ussually have higher interest rate and vice versa.

In shorter period, we may dertermine the risk more easily then it deserves to enjoy lower interest risk.

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Top managers of are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company

vivado [14]

Answer:

Blue-ray discs Blue-ray discs Differential

and DVD discs only amount

Sales Revenue $432,000 $305,000 $127,000

Variable Costs ($246,000) ($150,000) ($96,000)

Contribution M. $186,000 $155,000 $31,000

Fixed Costs:

Manufacturing ($128,000) ($128,000) $0
S&A expenses ($67,000) ($67,000) $0

Operating Income ($9000) ($40,000) $31,000

b) Will dropping DVDs add $41,000 to the operating income?

No, dropping the DVDs product line will decrease operating income by $31,000, resulting in a total loss of $40,000. Even though the DVDs product line by itself is not profitable, it absorbs a large percentage of the fixed costs and if you get rid of it, all the fixed costs will be absorbed by the Blue-rays product line.

6 0

3 years ago

(14 points) A financial analyst determines that Cyclone Company has $54 million of interest bearing debt outstanding and 3,800,0

-Dominant- [34]

Answer:

CYCLONE COMPANY

a. Value r Harsh total

Interest bearing debt $54,000,000 0.03969 2,143,260

Common share(3,800,000*$45.60)173,280,000 0.0972 16,842,816

227,280,000 18,986,076

Weighted average cost of capital = 18,986,076/227,280,000 =

= 0.0835 = 8.35%

r for debt = 6.30%*( 1 - 0.37) = 3.969% = 0.03969

b. cost of equity = D/P = $2/$45.60 = 0.0439 = 4.49%

c. D1 = D(1+g)

$2.70 = $2(1 + g)

1+g = $2.70/$2

1 + g = 1.35

g = 1.35 - 1 = 0.35

g = 35%

Explanation:

8 0

3 years ago

what is an accurate description of the relationship between international business and domestic business

Verdich [7]

Domestic business refers to the business where economic transactions are conducted within the geographical boundaries of the one country. International business refers to the business where economic transactions are conducted across border with several countries in the world.

7 0

2 years ago

What is the great economic problem

Helen [10]

Answer:

Explanation:

hey there.here is your answer

The great economic problem is how to arrange our limited resources to satisfy as many of our wants as possible. Resources are not equally valuable in all uses, so we must choose where to allocate our resources in order to get the most value out of those resources

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7 0

3 years ago

A monopsonistic employer in an unorganized (nonunion) labor market will: Group of answer choices pay a wage rate in excess of la

pogonyaev

Answer:

pay a wage rate less than labor's MRP

Explanation:

A monopsonistic employer in an unorganized (nonunion) labor market will: "pay a wage rate less than labor's MRP"

The above statement is based on the idea that Monopsony is a market situation whereby a single buyer or firm is the only purchaser of a good or service, which in most cases has to do with the purchase of labor.

And given the fact that the firm is the sole purchaser of labor, where there is no labor union, there is a high tendency that such firm or employer pays a wage rate less than labor's marginal revenue productivity.

3 0

3 years ago