Answer:
Investment
Explanation:
To invest is to allocate money in the expectation of some benefit/return in the future.
Answer:
keep producing in the short run but exit the industry or go out of business in the long run
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.
A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run
Answer: 8.45%
Explanation:
From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.
We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.
Holmes's after-tax cost of debt will therefore be calculated as:
= Yield to maturity × (1 - Marginal tax rate)
= 13% × (1 - 35%)
= 13% × (65%)
= 0.13 × 0.65
= 0.0845
= 8.45%
Answer:
= (0.043 , 0.257)
Explanation:
p = 9/60 = 0.15
Z score for 98% confidence interval = Z0.01 = 2.33
The Confidence interval = (p + Z0.01 * sqrt(p * (1 - p) / n))
= (0.15 + 2.33 * sqrt(0.15 * (1 - 0.15) / 60))
= (0.15 + 0.107)
= (0.043 , 0.257)
record book .................................................... .