Answer:
Market Price $985.01
Explanation:
We have to convert the US semiannually rate to annually.
Now this is the annual rate spected for a similar US Bonds
So we are going to calculate the present value using this rate.
Present value of an annuity of 78 for 20 years at 7.9521%
PV = 768.55
And we need to add the present value ofthe 1,000 euros at this rate
Present Value = 216.4602211
Adding those two values together
$985.01
The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.
Answer: C) eliminating the effects of income statement transactions that did not result in a corresponding increase or decrease in cash
Explanation:
The income statement comprises of entries that are not cash based in nature but help in the computation of taxes amongst other things such as depreciation and amortization.
When calculating net cash provided from operating activities therefore the income calculated should be adjusted for any expenses or revenue that are not cash based in nature and so will not result in a corresponding increase or decrease in cash.
For instance, adding back depreciation and amortization to the net cash balance as both do not actually reduce the cash balance of the company.
Answer:
the options were missing:
- a tax of $9,000
- a tax of $14,000
- a tax of $15,000
- a tax of $18,000
the answer is a tax of $18,000
Explanation:
in this case, the seller surplus = $510,000 - $485,000 = $25,000, while consumer surplus = $525,000 - $510,000 = $15,000
Taxes decrease consumer surplus, but consumers are still willing to purchase goods if the price of the goods plus the taxes is equal or less to the maximum price that they are willing to pay. But $510,000 + $18,000 = $528,000 which is higher than $525,000
<span>Molly's car is no longer fully in the shade due to the sun's movement throughout the day. As the day progresses, the sun will recede into the sky and the car will no longer be entirely in the shade.</span>
Answer:
semiannual 1.42%
yearly 2.85%
Explanation:
Those are annual rate so we need to determinate the 6-month rate
The annual rate times the semiannual rate will be equal to the 18 months rate
r = 0.01416296 = 1.42%
If we want to express it annually:
1.0142^2 - 1 = r = 2.85%
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