Answer:
c. 10%
Explanation:
The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.
Here i will use a Financial Calculator to enter and compute the YTM as follows :
N = 20× 2 = 40
PMT = ($1,000 × 8%) ÷ 2 = $40
PV = $828
P/YR = 2
FV = 1,000
I or YTM = ?
Thus the cost of the Bond is 10%
Answer:
d. a private corporation.
Explanation:
A private corporation is a limited company that is owned by a few numbers of shareholders. The shares of a private corporation are not publicly traded in the securities exchanges, neither are they issued through an initial public offer. Ownership of a private corporation is transferable but is restricted to the founders who, in most cases, are family members, close friends, or associates.
Wiley and the shareholders have a private corporation. Formation of a private corporation is through incorporation, as is the case of Wiley wire corporation. Private corporations are established with a profit motive. Ownership of Wiley wire corporation will be restricted to Wiley and the other shareholders.
Answer:
$52
$ 1.33
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced export
- portends gloom for the general outlook for the economy
Explanation:
Given domestic demand curve, S(p) = 20p⁻⁰°⁵
the domestic supply curve S(p)= 5p⁰°⁵
world price is $7.00
using calculus to determine the changes in consumer surplus
by consumer surplus means in this case supply exceeds demand
we establish the equilibrium point where the supply and demand functions meet or are equal
solving 20p⁻⁰°⁵ = 5p⁰°⁵
20/5 = p⁰°⁵/p⁻⁰°⁵
4 = p⁰°⁵⁺⁰°⁵
4= p = q which is the quantity produced
consumer surplus = maximum price willing to pay - Actual price
= ∫⁴₀ dp dp - p* q
= ∫⁴₀20p⁻⁰°⁵ dp- 7* 4
= 20∫⁴₀p⁻⁰°⁵ dp -28
= 20/0.5 p⁰°⁵- 28
= 40 *4⁰°⁵ - 28 = $52
producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive
thus producer surplus = p* q - ∫⁴₀ d(s) dp
= 7 * 4 - ∫⁴₀ 5p⁰°⁵ dp
= 28 - 5 ∫⁴₀ p⁰°⁵ dp
= 28 -5 *2/3 p¹°⁵
= 28 -5 *2/3 4¹°⁵
=$ 1.33
welfare from eliminating free trade
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced exports
- portends gloom for the general outlook for the economy
Answer:
Option a and b
Option C
Explanation:
A . In simple words, price control refers to the limits on the rates that can be paid for good and services produced in a marketplace that are set up and imposed by central govt.
The purpose behind these restrictions may derive from the need to preserve the availability of products even through skills shortages, and to further delay inflation, or, instead, to help ensure a guaranteed minimum income as well for manufacturers of such products or to seek to obtain a decent living wage.
B. In simple words, due to printing of new currency the supply of money ion the market would increase which will lead to inflation in the economy which will further lead to loss in value of the existing money in hand on the individuals.
Answer:
d. $625,000
Explanation:
cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period
- cost of goods manufactured during the current period = $600,000
- finished goods inventory at the beginning of the period = $25,000
cost of goods available for sale = $600,000 + $25,000 = $625,000
cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000
