Answer:
Adjusted book balance will be $4258
Explanation:
We have given ending book balance = $4200
Error in recording = $50
Interest revenue = $33
And service charge = $25
We have to find the adjusted book balance
Adjusted book balance is given by
Adjusted book balance = Ending book balance + error in recording + interest revenue - service charge = $4200+$50+$33-$25=$4258
Answer: A - nominal wages are slow to adjust to changing economic conditions
Explanation:
In the short run, the costs of many of the factors used in the production process are fixed. For example labours wage is fixed for a number of years because of labour contracts. Also the raw materials used in the production process have long term agreements that fix their prices.
As a result of factors of production been fixed in the short run, when general price level rises and the cost of production remains constant, profit also rises.
Firms take advantage of this rise in price and increase production and the quantity of aggregate supply increases. This is why the short run aggregate supply curve is upward sloping.
Answer:
<em>B) contradicts the argument and finds that firms that successfully pursue cost leadership and product differentiation simultaneously can often expect to gain a sustained competitive advantage.</em>
Answer: Option (D) is correct.
Explanation:
A banker's acceptance is an instrument that represents the promised payment by the bank in the future. This payment is accepted as a time draft by the bank and is to be drawn on a particular deposit. This draft is having all the information that is related to the future payment amount, date of the payment and the party to which the payment to be made. This acceptance can also be traded until the date of maturity.
Answer:
The correct answer is 0.4%.
Explanation:
According to the scenario, the computation for the given data are as follows:
If no debt, then required return can be calculated by using following formula:
Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium
= 6% + 1 × 4%
= 0.06 + 0.04
= 0.10 or 10%
If debt, then required return can be calculated by using following formula:
Required return ( with debt) = Risk free rate + levered Beta × Market risk premium
= 6% + 1.1 × 4%
= 0.06 + 0.044
= 0.104 or 10.4%
So, extra premium required = 10.4% - 10% = 0.4%
