Answer:
A) 5.22 percent
Explanation:
The Pretax cost of debt is the Yield to maturity (YTM) of bond.
Using a financial calculator , you can solve for the YTM with the following inputs;
Face value ; FV = 1000
Maturity of bond; N = 15
Annual coupon payment; PMT = coupon rate * Face value = 6%*1000 = 60
Current price; PV = $1,080
then compute annual interest rate; CPT I/Y = 5.22%
Answer:
a. $700,000
86%
c. No
Explanation:
a. Jacobs will earn $700,000 per year. This equals the normal salary for a designer, $100,000, plus the economic rent he collects for his special talent, $600,000.
6/7 or 0.857 or 86% of his salary is thus economic rent. This is found by 600,000/700,000
b. The answer is No. If Jacobs’s employer withholds some of the additional revenue it takes in as a result of hiring him, some other advertising company will offer him a higher salary and still manage to earn an economic profit. Bidding for Jacobs will continue until firms are indifferent between paying him $600,000 and hiring any other designer for $100,000.
There will be a "decrease in the supply of automobiles, which is a shift to the left of the supply curve."
Changes in the cost of production and related variables can cause a whole supply curve to move right or left. This causes a higher or lower amount to be provided at a given cost. The ceteris paribus assumption is when the supply curves relate costs and amounts provided accepting no different components change.
Answer:
b. Written communication
Explanation:
Written communication -
It refers to the written or typed manner of sending messages via bulletins , telegrams , reports , circular , letters etc , is referred to as written communication.
- This type of communication can have the record for future reference .
- It is a fast way of to transfer any data or information.
- The method is less flexible.
- The method can be used for any type of legal documentation.
- It is perfect for long distance communications.
- The communication can be done with many person at one time.
Hence , from the given information of the question,
The correct term is b. Written communication.
It is a formal method of communication and is less flexible. A written document preserved properly becomes a permanent record for future reference.
Answer: $66.67
Explanation:
Lindor inc.'s $100 par value preferred stock pays a dividend fixed at 8% of par. to earn 12% on an investment in this stock, you need to purchase the shares at a per share price of ;
Given the following :
Par value of preferred stock = $100
Fixed Dividend rate = 8% of par
Expected return on investment (r) = 12%
Purchase price of this stock in other to earn 12% :
Per share price is given by:
(par value × Dividend rate) / expected return
($100 * 0.08) / 0.12
$8 / 0.12 = $66.6666
= $66.67
