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3 years ago

When a competitive market achieves allocative efficiency, it implies that:

1 answer:

7 0

Well allocative efficiency is: optimal levels of all goods are produced and sold to consumers who value them most

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Read the following statement and select the term that matches.

ziro4ka [17]

Matches is the correct term

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4 years ago

a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rati

VikaD [51]

Answer and Explanation:

a. The computation of price (expressed as a percentage of the face value) is shown below:-

Price = Face value ÷ (1 + Yield to maturity)^Number of the compounding period

= $1,000 ÷ (1 + 0.0323)^1

= $1,000 ÷ 1.0323

= $968.71

Price expected as a percentage to a face value = Price ÷ Face value × 100

= $968.71 ÷ $1,000 × 100

= 96.87%

b. The computation of credit spread of AAA-rated corporate bonds is shown below:-

Credit spread = Yield of AAA-rated corporate bond - Yield of treasury bond

= 3.23% - 3.15%

= 0.08%

c. The computation of credit spread on B-rated corporate bonds is shown below:-

Credit spread = Yield of B-rated corporate bond - Yeld of treasury bond

= 4.94% - 3.15%

= 1.79%

d. The credit rating for a bond changes with its respective credit risk change. That implies the bond 's rating would be lower the lower risk, and likewise.

The investor is demanding higher returns on risky bonds for additional risk-taking. Hence the credit spread is widening as the rating of bonds falls with an increase in the risk.

8 0

3 years ago

The McDonaldization of society refers to the:

puteri [66]

Answer:

Explanation:

obesity epidemic in American society increased uniformity and rationality of society

6 0

3 years ago

A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised ch

White raven [17]

Answer:

The answer to this question is C. sustainable

Explanation:

Competitive advantages are conditions that allow a company or country to produce a good or service of equal value at a lower price or in a more desirable fashion. These conditions allow the productive entity to generate more sales or superior margins compared to its market rivals.

In the case of Farm Fresh, Its competitive advantage is said to be sustainable, because the major factor required for maintaining a competitive advantage is continuous expansion which Farm Fresh has exhibited ; it has opened new branches selling its unique products and these new locations are becoming highly profitable:

Hence the answer is C. Sustainable

6 0

3 years ago

Read 2 more answers

Check your worksheet by changing the estimated total amount of the allocation base in the Data area to 50,000 machine-hours, kee

Savatey [412]

Answer:

Data

Allocation Base Machine Hours

Estimated manufacturing overhead cost $300,000

Estimated total amount of allocation base 75,000 machine hours

Actual manufacturing overhead cost $290,000

Actual total amount of the allocation base 68,000 machine hours

Computation of predetermined overhead rate

Estimated manufacturing overhead cost $300,000

Estimated total amount of allocation base 75,000 machine hours

Predetermined overhead rate $4 per machine hour

= 300,000/75,000

= $4

Computation of underapplied or overapplied manufacturing overhead

Actual manufacturing overhead cost $290,000

Manufacturing overhead cost applied to WIP during the year:

Predetermined overhead rate $4 per machine hour

Actual total amount of allocation base 68,000 machine hours

Manufacturing overhead applied $272,000

= 68,000 * 4 = $272,000

Underapplied (overapplied) manufacturing $18,000 underapplied

overhead

8 0

3 years ago