Answer:
The correct answer is option a.
Explanation:
The long run aggregate supply curve is inelastic and vertical in shape. The reason behind this is that in the long run the output level is not affected by the change in price level. It is rather affected by the quantity of inputs.
A leftward shift in the long run aggregate supply means that the output level is decreasing. This decrease in input in this case is either because of decrease in quantity of labor available,or because of increase in minimum wages the firms are hiring less labor.
So, option a is the correct answer.
Answer:
Current yield=5.6%
Explanation:
<em>The current yield is the proportion of the current price of a bond earned as annual interest payment.</em>
<em>Current yield = annual interest payment/bond price</em>
<em>Annual interest payment = coupon rate × face value</em>
= 5.44% × $2000
= $108.8
Current yield
= annual interest payment/price
= $(108.8/1,930.36) × 100
= 5.6%
Note we used the annual interest payment nothwithstanding that interests are paid semi-annually
Answer: Present value of the cash flows of the company is $1,158,824.
Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.
The present value of the cash flows for perpetuity with decreasing growth rate is:
where, Cash flow for the year 1 (C1) = $197,000
Discount rate (r) = 11%
Growth rate (g) = -6%
![Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]](https://tex.z-dn.net/?f=%20Present%20value%20of%20the%20cash%20flows%20%28PV%29%20%3D%20%24197000%2F%5B0.11%20-%20%28-0.060%29%5D%20)
Present value of the cash flows (PV) = $1,158,824
Therefore the present value of the cash flows of the company is $1,158,824.
Answer
Option C
Decrease in cost $132,672
Explanation:
T<em>o determine the increase or decrease in costs associated with making, we will compare the relevant costs of the two options as follows</em>
<em> $</em>
Variable cost of making 10
Variable cost buying <u>14</u>
Savings in cost per from making 4
Total cost savings (decrease) 4 × 33,168 = $132,672
Decrease in cost as result of making =$132,672
Answer:
I think it's C
Explanation:
Hshdh lowballing is basically changing the price lower or higher until someone agrees right.
