Answer:
Zero-cupon bond= $612.52
Explanation:
Giving the following information:
Face value= $1,000
Number of periods= 5 years
Interest rate= 10.3% = 0.103
<u>To calculate the price of the bond, we need to use the following formula:</u>
<u></u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.103^5)]
Zero-cupon bond= $612.52
Answer:
b) inventory is sold on credit.
Explanation:
Liquidity is defined as the a business to use its current assets to settle it's current liabilities.
This is calculated by using the working capital ratio.
Working capital ratio = Current assets ÷ Current liabilities.
Cash and inventory contribute to a business' liquidity.
When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.
A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)
Answer: A $304
Explanation: LIFO means last in first out. It means it is the older inventory that is sold off first.
On November 1, total value of inventory = $20 × 5 =$100
On November 2, total value of inventory = $100 + ( $22 × 10) = $320
On November 6, total value of inventory = $320 +($25×6) = $470
On November 8, 8 units of inventory was sold. This would be taken from the older stock of inventory. These inventories are the those from November 1 and 2.
The remaining inventory after the sale = (7 × 22) + 150 = $304
Answer:
The correct answer is option A.
Explanation:
An increase in supply decreases the equilibrium price as the supply curve shifts rightward and intersects the demand curve at a lower point. This decline in the equilibrium price causes the quantity demanded to increase. The demand for the product remains the same.
The statement given in the question is false. A change in demand is caused by a change in other factors while the price of the product remains the same. The change in price affects the quantity demanded.
