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grin007 [14]
3 years ago
13

Suppose on Friday night you have a choice to go either to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to

see Katy Perry. You would pay as much as $180 to see Lady Gaga perform, but tickets to her show cost $100 . Assume that you end up going to the Katy Perry concert. Since you went to the Katy Perry concert, you must be willing to pay at least $________to see Katy Perry.
Business
1 answer:
VMariaS [17]3 years ago
4 0

Answer: $100

Explanation:

From the information, on a Friday night, you have the choice to either go to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry but you would pay as much as $180 to see Lady Gaga perform, even thought the tickets to her show cost $100.

This illustrates that the person must be willing to pay at least $100 to see Katy Perry. Since the person wa.willing to pay $180 for Lady Gaga even when the tickets were$100, then you should be able to pay at least $100 to see Perry

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1. Describe the value of an education.
Colt1911 [192]

Well you need an education to get a job and make money to survive, if you want to lets say work at a fast food place then you need to know math, and ALGEBRA to combine foods and stuff. If you want to be a reporter then you'll need to know English language arts. Basically you'll need an education for any job you get.

4 0
3 years ago
Basic bond valuation Complex Systems has an outstanding issue of ​$1 comma 000​-par-value bonds with a 16​% coupon interest rate
salantis [7]

Answer:

a. Complex Systems' bond price​ today = $1,476.36

Explanation:

a. If bonds of similar risk are currently earning a rate of return of 9​%, how much should the Complex Systems bond sell for​ today?

This can be calculated by adding the Present Value of Coupons and the Present Value of Par Value as follows:

<u>Calculation of Present Value of Coupons</u>

The present of coupons is calculated using the formula for calculating the present value of an ordinary annuity as follows:

Present value of coupons = C × [{1 - [1 ÷ (1 + r)]^n} ÷ r] …………………………………. (1)

Where;

C = Annual coupon amount = Par value * Coupon rate = $1,000 * 16% = $160

r = required rate of return or return of similar risk = 9%, or 0.09

n = number of years = 11

Substitute the values into equation (1) to have:

Present value of coupons = $160 × [{1 - [1 ÷ (1 + 0.09)]^11} ÷ 0.09] = $1,088.83

<u>Calculation of Present Par of Value</u>

To calculate this, we use the present value formula as follows:

Present Value of Par Value = Par value / (1 + r)^n

Since Par Value is $1000 and r and n are as already given above, we have:

Present value of Par Value = $1,000 / (1 + 0.09)^11 = $387.53

Therefore, we have:

Complex Systems' bond price​ today = Present value of coupons + Present value of Par Value = $1,088.83 + $387.53 = $1,476.36

b. Describe the two possible reasons why the rate on​ similar-risk bonds is below the coupon interest rate on the Complex Systems bond.

The following are the possible two reasons:

1. Interest may vary bust the coupon is fixed. What can cause the interest rate to vary is the bond rating by rating agency. But his will not affect the coupon rate which is fixed. When the rating is high, the interest will be low. But when the rating is low, the interest will be high. This indicates a negative relationship between the rating and the interest rate.

2. The level of demand may also influence the interest rate to change. When the demand is high, the interest will be low. But when the demand is low, the interest will be high. This also indicates a negative relationship between the demand and the interest rate.

c. If the required return were at 16​% instead of 9​%, what would the current value of Complex​ Systems' bond​ be? Contrast this finding with your findings in part a and discuss.

To do this, we simply change he required return to 16% (or 0.16) in part a and proceed as follows:

Present value of coupons at 16% = $160 × [{1 - [1 ÷ (1 + 0.16)]^11} ÷ 0.016] = $804.58

Present value of Par Value at 16% = $1,000 / (1 + 0.16)^11 = $195.42

Complex Systems' bond price​ today at 16% = $804.58 + $195.42 = $1,000.00

Comparing part c result with part a result shows that if the coupon rate is greater than the required rate of return, the bond is sold at a premium. That is, price of bond will be more than par. As it can be seen in part a, the price of bond is $1,476.36 when the coupon rate of 16% is greater than the required return of 9%.

Also, the bond will be sold at par when the coupon rate and require return are equal. This is shown in part c where the bond is sold at $1,000 when both coupon rate and required return rate are equal to 16%.

By implication, we can also infer without doing any calculation that the bond will be sold at a discount if the coupon rate is less than the required rate of return.

7 0
3 years ago
Help please!
Kitty [74]

Answer: Gemma took a <em>values inventory </em>in her career explorations class. This indicated to Gemma that money and status may mean a lot to her, but she also finds it healthy to maintain a work-life balance. The correct answer is B.

Explanation:

A values inventory is commonly given in school to help a student with their career goals. They are usually given a personality inventory, an aptitude assessment, and an interest inventory.

The values inventory worksheet has two separate sets of questions about life values and work values. On this worksheet, the student must choose from the columns of "must have, would like, and least important."

A few of the life values a student has to choose from are listed below.

1.) Being Healthy as can be.

2.) Having a happy family life

3.) Having a high status and prestige

4.) Having material possessions in life.

A few of the work values a student has to choose from are listed below.

1.) Being a leader at work.

2.) Working as a team member.

3.) Having experiences that are creative.

4.) Having job security.

8 0
3 years ago
Which of the following expenses is NOT deductible when a taxpayer uses the simplified method of calculating the home-office dedu
Rasek [7]

The simplified method of computing home office expenses limits the number of home office expenses allowed to a fixed amount regardless of the amount of business income or the size of the home office.

<h3>How do you calculate home office deductions?</h3>

A business owner can calculate the home office deduction in two ways: regular and simplified. The regular method would require you to use Form 8829 to calculate your deduction, which would include figures for the area of your home and the total hours it was used for business purposes, your business income, and other business expenses.

If you itemize deductions and use the simplified method for a taxable year, you can deduct home expenses that would otherwise be deductible as itemized deductions on Form 1040 or 1040-SR, Schedule A, without reducing these expenses by the amounts allocable to the simplified method.

Learn more about home office deductions here:

brainly.com/question/13073712

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8 0
10 months ago
According to an article in the Wall Street Journal​, KB Home and other builders found demand for new houses increasing in 2017 a
Nadusha1986 [10]

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

7 0
3 years ago
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