Answer:
6.00%
Explanation:
Rate of return can be calculated using RATE function in excel or I/Y on calculator or using the formula for annuity
Annuity Rate = RATE(nper=8, pmt=1100, pv=-6,830.77, fv = 0, 0)
Annuity Rate = 0.06000118
Annuity Rate = 6.00%
Answer:
c. Repayment of long-term borrowing to the bank.
Explanation:
The third section of the statement of cash flows shows the cash flows from financing activities.
These activities are defined as ‘activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.’ It measures the flow of cash between a firm and its owners and creditors. Companies often borrow money to fund their operations, acquire another company or make other major purchases. Here again for investors, the most important item is cash dividends paid.
Based on the above discussion, the following item shall be included in the financing cash flows.
c. Repayment of long-term borrowing to the bank.
Answer:
economic profits = 0
so correct option is a)zero
Explanation:
given data
output = 100 units
total fixed cost = $600
total variable cost = $400
price of product = $10 per unit
firm produces = 100 unit
to find out
firm earn an economic profit of Group
solution
we know here Total revenue is
Total revenue = 10 × 100 =$1000
and Total cost is here
Total cost = $400 + $600
Total cost = $1,000
so economic profits is express as
economic profits = revenue - cost
economic profits = 1000 - 1000
economic profits = 0
so correct option is a)zero
Answer:
This will create shortage and people will sell milk in black market at higher price.
Explanation:
Wildfires and mudslides have closed the highways. This created greater demand and short supply.
The equilibrium price increased to $7.
But the government imposed a price ceiling of $4.
At this binding price ceiling, the quantity demanded is more than quantity supplied.
This high demand would cause the suppliers to sell milk in the black market at a higher price.
Answer:
the purchase of a foreign asset and a forward contract in the market for foreign exchange.
Explanation:
An arbitrage is a type of trade that is caused as a result of market inefficiency.
For example, if a stock is trading at $50 on the London Stock Exchange (LSE) while it is trading for $52 on the New York Stock Exchange (NYSE) at the same time. Philip buys the stock on the LSE and sells the same shares immediately on the NYSE and earns a profit of $2 per share, this is referred to as an arbitrage.
This ultimately implies that, arbitrage allows an individual to profit from the price difference between similar goods, commodity, securities or currency in different markets.
A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.
Hence, a covered interest arbitrage involves both the purchase of a foreign asset and a forward contract in the market for foreign exchange.
