Contribution=Selling Price*Contribution Ratio
=25*.06
=$15
Variable Expense=Sales-Contribution
=25-15
$10
When Selling price=$28
Contribution=$28*.06
=$16.8
Variable Expense=28-16.8
=$11.2
Increase in variable=11.2-10
=$1.2
Answer:
d. 12.72%
Explanation:
To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.
The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.
Expected return = risk-free ROR + (Beta*Market risk premium)
In this case we know all the parameters but the Market risk premium (MRP), so we have:
We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:
The expected return on the market is 12.72%.
Answer:
The expected 1-year interest rate 2 years from now should be 8.11%
Explanation:
The Zero-coupon rate bond is a bond that does not offer the coupon payment. This coupon is issued at a deep discount value. The only cash flow associated with this bond is the face value at the maturity date.
Use following equation to calculate the The expected 1-year interest rate 2 years from now
( 1 + 1 years maturity rate)^1 x ( 1 + 2 years maturity rate)^2 = ( 1 + 3 years maturity rate)^3
( 1 + 1 years maturity rate) x ( 1 + 6.60%)^2 = ( 1 + 7.10%)^3
( 1 + 1 years maturity rate) x ( 1.0660)^2 = ( 1.0710)^3
( 1 + 1 years maturity rate) = ( 1.0710)^3 / ( 1.0660)^2
( 1 + 1 years maturity rate) = 1.228481 / 1.136356
1 + 1 years maturity rate = 1.081071
1 years maturity rate = 1.081071 - 1
1 years maturity rate = 0.081071
1 years maturity rate = 8.1071%
1 years maturity rate = <u>8.11%</u>
Answer:
A Blank Endorsement is - an endorsement consisting only of the endorser's signature. * If the blank endorsed check is lost or stolen, the check can be cashed by anyone who has it, so only use it when it is ready to be directly cashed or deposited into the bank. SPECIAL ENDORSEMENT.
Explanation:
Answer:
d. may have too many or too few firms, but the government can do little to rectify the situation.
Explanation:
