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TiliK225 [7]
3 years ago
9

When the economy starts expanding there is a/an __________ in the term premium and a/an ___________ in the risk premium. Group o

f answer choices increase, increase decrease, decrease increase, decrease decrease, increase
Business
1 answer:
makkiz [27]3 years ago
3 0

Answer:

Increase in premium

Decrease in the risk premium

Explanation:

Premium can be  defined as the rewards earned by investors who has decided to engage in new businesses in a risk free state while risk premium is defined as the excess reward earned above the free risk rate that is expected to earn in the course of investment.In order word , it is a form of compensation for the risk undertaken .

As economy starts expanding , one of the consequences is that the premium will increase while the development reduces related risks and risk premium reduces.

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What is one reason European governments protect the growing of food with subsides even though imported food would be cheaper
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Job 412 was one of the many jobs started and completed during the year. The job required $9,500 in direct materials and 35 hours
forsale [732]

Answer:

The appropriate answer is "$8,457,50".

Explanation:

The given values are:

Direct material cost,

= $9,500

Direct labor cost,

= $10,400

Units completed in job 412,

= 4

Now,

The total cost for completion of job 412 will be:

=  Direct \ materials \ cost + Direct \ labor \ costs

On substituting the values, we get

=  9,500 + 10,400

=  19,900 ($)

Unit produced cost will be:

=  \frac{19,900}{4}

=  4,975 ($)

70% of unit produced cost will be the profit margin, then

=  70 \ percent\times 4,975

=  3,482.50 ($)

hence,

The price charged to the customer will be:

=  Unit \ product \ cost + Profit \ margin

On substituting the values, we get

=  4,975 + 3,482.50

=  8,457,50 ($)

3 0
3 years ago
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, v
lions [1.4K]

Answer:

$368,000

Explanation:

In order to appraise the property using the capitalization approach, we must first determine a net cash flow:

net cash flow = $48,000 - $3,600 - $15,000 = $29,400

Now we calculate the property value using the perpetuity formula:

property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000

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3 years ago
What are three common causes of scarcity??
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Poor distribution of resources, when demand increases and supply cant keep up, and or government intervention.
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