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3 years ago

For each of the following scenarios, determine the effect on aggregate supply.

Business

1 answer:

anastassius [24]3 years ago

4 0

Answer:

(a) Option (c) is correct.

(b) Option (b) is correct.

Explanation:

(a) If there is an unexpected decrease in the oil prices (Positive supply shock) then as a result this will reduce the cost of production of the firms and hence, there is an increase in the supply of the goods. This will shift the aggregate supply curve rightwards.

(b) If all the producers are required to contribute more towards the heath insurance coverage (negative supply shock) then as a result this will increase the cost of production of the producers. So, this will lead to decrease the supply of the goods and also, shift the supply curve leftwards.

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simmons company issued four-year bonds with a par value of $1,000,000. the bonds have a 4% coupon rate and interest is payable s

VLD [36.1K]

Simmons Company issued four-year bonds with a $1,000,000 par value. Interest is due semi-annually on the bonds, which have a 4% coupon rate. The market interest rate is 6%. $1002402.88 must Simmons pay investors in interest on a semi-annual basis.

The Indeed Editorial Team is made up of a brilliant and diverse group of writers, researchers, and subject-matter experts who use Indeed's data and insights to provide helpful advice for navigating your career path.

Understanding how loans and investments operate is essential to laying a solid financial foundation for both you and your company. How interest is calculated is one of the key aspects of loans and investments. Your loans and investments may have simple interest or compound interest terms. You will discover what it implies, why it matters, and how to compute interest that is compounded semiannually interest in this post.

Learn more about semiannually interest here

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1 year ago

Easy Car Corp. is a grocery store located in the Southwest. It expects to pay an annual dividend of $6.30 next year to its share

emmainna [20.7K]

Answer:

Missing question <em>"1. What is the cost of debt for Easy Corp? 2. How many interest payments are left for the bond of Easy Corp? 3. What is the interest payment per period for the bond? 4. What is the discount rate per period to use in pricing the bonds? 5. What is the market value of equity for Easy? 6. What is the cost of equity for Easy?"</em>

<em />

1. Cost of debt is equal to YTM, which is equal to 10%

Cost of debt = YTM = 10%

2. Number of interest payment to be made is equal to 26 * 2 = 52

This is because payment is made semi annually

3. Interest payment per period = 8.9141% / 2 * $1,000

Interest payment per period = 4.45705% * $1,000

Interest payment per period = $44.57

4. As the period is semiannual, discount rate per period is equal to 10% / 2 = 5%

5. Market value of equity = 600,000*60 = $36,000,000

6. Cost of equity = Dividend price + Growth rate

Cost of equity = 6.3/60 + 0.05

Cost of equity = 0.105 + 0.05

Cost of equity = 0.155

Cost of equity = 15.5%

7 0

3 years ago

The Federal Reserve comes to the conclusion that more money must be pumped into the economy in an effort to stimulate economic g

wolverine [178]

The answer is: B) Buying securities (Bonds)

Money supply refers to the amount of money that circulated in the country. When government buy securities from the private sector, the money would be exchanged from the government's purse to the private sector's. If this occurs, the amount of money that circulated would be increased.

4 0

3 years ago

Read 2 more answers

A-Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The compan

Elan Coil [88]

Answer:

$4230 is the correct answer to the given question .

Explanation:

As Mention in the question the sales revenue to the dishwashers = $94,000

Also the company estimated warranty expense cost is =4.5% of revenues,

Now the estimated warranty payable can be determined by the following formula

$Annual\ sales\ revenue\ for \ the \ dishwashers\ * warranty\ expense\ revenues.$

$= \ 94000\ * \ 4.5\ % \ of \ revenues$

== $4230

6 0

3 years ago

One criteria for deciding whether to have a server active all the time or have it start on demandusing a process server is how f

belka [17]

Answer:

The other criteria could be about the expected delay that is acceptable to customer in the processing time of the server.

Explanation:

If the customers are ready to accept a certain delay then it can help making the decision whether to keep the server permanently on, as it consumes high power.

Also if it is not used all the time then keeping it on all the time would be wastage of resources.

Thus, the scheduling of the expected time at which they use, and the acceptable delay would provide a proper criteria for this.

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3 years ago