Answer is A
Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.
For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.
Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.
Answer:
If I were to guess it would be D sorry if its wrong
Answer:
Market price of the bond = $912.53
Explanation:
YTM = 6.90%
Coupon rate = 5.87%
Number of compounding per year = 2
YTM Per perid = 0.0345
Years = 13
Number of period = 26 (Nper)
Par value = 1,000
Semi annual coupon rate = 0.02935
The semi annual coupon payment = Par value * Semi annual coupon rate = 1,000 * 0.02935 = $29.35
Market price of the bond = PV(YTM, Nper, Semi annual coupon payment,Par value)
Market price of the bond = $912.53
Answer:
A) initial outlay = $150 million
Cash flow year 1 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 4 = [($30 - $25) x 0.6] + $25 + ($25 x 60%) + $50 = $93
B) Using a financial calculator, NPV = -$16.85 million
C) cash flow year 4 should increase by $24.667 million, meaning that the selling price must increase by $$24.667/0.6 = $41.11 million
minimum selling price $25 + $41.11 = $66.11 million
Answer:
B)Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
Explanation:
The financial planning process can be regarded as series of steps which states best way of using money and investments as well as other assets so that financial goals can be potentially achieved. Most of the financial plans has its focus savings of goals as well as payoff goals even estate planning goals so that roadmap to financial freedom can be set.
The steps that can be taken in the financial planning process are;
✓ Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.
✓Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios
✓Determine the amount of capital that will be needed to support the plan. e. Monitor operations
