Answer:
Price elasticity of demand for Adam=0
Price elasticity of demand for Barb=1
Explanation:
Price elasticity of demand = %age change in demanded QTY / %age change in demanded price
The price is not important for Adam, and he demands a fixed quantity, hence his demand curve is vertical. A perfectly vertical demand curve is can inelastic demand curve and has price elasticity =0
The quantity is not important for Barb, and he demands a fixed price, hence his demand curve is horizontal. A perfectly horizontal demand curve is has price elasticity =1
Answer:
Price of bond = $916.26
Explanation:
<em>The amount to be paid for the bond would be equal to the Present value (PV) of the redemption Value (RV) plus the present value of the interest payments discounted at the yield rate.</em>
Let us assume that the face value of the bond is 1000 and it is redeemable at par
Interest payment = 6.375%× 1000 = 63.75
PV of interest payment = A× (1- (1+r)^(-n))/r
A- 63.75, r-8.5%, n-5
PV = 63.75 ×(1- (1.085)^(-5))/0.085)
PV = 251.215
PV of RV
PV = RV × (1+r)^(-5)
= 1,000 × (1.085)^(-5)
= 665.045
Price of bond = $916.26
Answer: "I. Many assets are measured at their historical cost rather than amounts for which the assets could be sold." explains why a company’s book value as reported in the balance sheet may not equal the company’s market value.
Explanation: Normally non-current assets (fixed assets) are valued at their historical acquisition cost, therefore the difference between the market value and the book value of a company occurs
Answer:
today's organizations use more competitive work teams.
Explanation:
U.S. business organizations differ from those a century ago because today's organizations use more competitive work teams. These competitive work teams motivate employees to work harder within the company in order to achieve the organizational goals which will result in various benefits for the workers that manage to help the organization achieve these goals.
