Well it is a toy manfacturing company and the intermediate good would be a toy plane
Answer:
a. The quality of rental housing units falls
c. The quantity of available rental housing units falls.
Explanation:
As the landlord cannot receive a desired return for their investment they will stop improving and doing proper maintenance of the property to obtain it.
They will also be less likely to rent and would prefer to sale and move away from the real-state investment business in the region to more profitable region or better business. This will make the ernt go up as there is less offer as well so the policy backfires.
Stoping the market to work property will cause market failures and the outcome won't be the desired
Answer:
I would suggest he decrease the sales price.
Explanation:
Because it will might make people rush the product due to its low price compared to other products of another brand.
The low price will create a high demand for the product therefore causing the quantity of the products being produced to increase.
The quality of the product will be very good since the quality is not being reduced only the price therefore it might result in not having the maximum profit needed.
Answer:
Amount investment in Sock Y = - $126,000
Beta of portfolio = 1.636
Explanation:
Data provided in the question:
Total amount to be invested = $140,000
Stock X Y
Expected return 14% 10%
Beta 1.42 1.18
Expected return of portfolio = 17.6%
Now,
let the weight invested n stock X be W
therefore,
Weight of Stock Y = 1 - W
thus,
( W × 14% ) + (1 - w) × 10% = 17.6
%
or
14W + 10% - 10W = 17.6%
or
4W = 7.6
or
W = 1.9
Therefore,
weight of Y = 1 - 1.9 = -0.9
Thus,
Amount investment in Sock Y = Total amount to be invested × Weight
= 140,000 × ( - 0.9 )
= - $126,000 i.e short Y
Beta of portfolio = ∑ (Beta × Weight)
= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]
= 2.698 - 1.062
= 1.636
Answer:
The aftertax salvage value of the machine is D) $10,134
Explanation:
Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.
Since taxes are based on the profit you make by selling something, our profit is:
Therefore, our taxes are:
So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:
Salvage Value of the Machine = $12,000 - $1,866?= $10,134
That is option D)
Best of luck.
