Answer:
37.5%
Explanation:
The percentage change in the price of a jar of peanut butter, using the midpoint method, is:
The percentage change in sales of jelly is 15%.
The cross elasticity of demand between peanut butter and jelly is:
The cross elasticity of demand is 37.5%
Answer:
third
Explanation:
The utility for consuming the first donut is 9 utils.
The utility for consuming the second donut is the difference from the total utility for the first two and just the first donut.
The utility for consuming the third donut is the difference from the total utility for the first three and just the first two donuts.
The utility for consuming the fourth donut is the difference from the total utility for the first four and just the first three donuts.
Since the utility for the 4th donut is less than the utility for the 3rd donut, utility begins to diminish after consuming the third donut.
Answer:
Current yield = <u>Annual coupon</u>
Current market price
Current yield = <u>$75</u>
$1,020
Current yield = 0.0735 = 7.35%
The correct answer is D
Explanation:
Current yield equals annual coupon divided by the current market price of the bond.
Answer:
16.89%
Explanation:
As per the given question the solution of simple rate of return for the investment is provided below:-
we need to first find out the accounting profit and depreciation
where
Accounting Profit = Annual Cash Inflow - Depreciation
and
Depreciation = Investment required in equipment ÷ Life of investment
= $36,500 ÷ 15
= $2,433.33
now we will put the value by using the accounting profit formula.
= $8,600 - $2,433.33
= $6,166.67
So,
Simple Rate of Return = Accounting Profit ÷ Initial Investment
= $6,166.67 ÷ $36,500
= 16.89%
Answer:
(1) $19,500
(2) $142,000
(3) $27,000
(4) $15,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the p/l over the useful life of the asset. It may be computed as
Depreciation = (cost - salvage value)/useful life
Annual depreciation = ($220,000 - $25,000)/10
= $19,500
4 years later
Carrying amount of the equipment
= $220,000 - 4 * $19,500
= $220,000 - $78,000
= $142,000
If the asset is impaired
An asset is said to be impaired when the carrying amount is higher than recoverable amount where the recoverable amount is the higher of the fair value less cost to sell or the value in use of the asset which is the present value of the future expected inflow from the use of the asset.
Value in use = $115,000
Fair value = $85,000
Value in use = $115,000
Impairment loss = $142,000 - $115,000
= $27,000
Remaining number of years is 6
New carrying amount = $115,000
the annual depreciation expense = ($115,000 - $25,000)/6
= $90,000/6
= $15,000
